STEEL DYNAMICS INC (1STLD.MI) Stock Fundamental Analysis
BIT:1STLD - Euronext Milan - US8581191009 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1STLD. 1STLD was compared to 37 industry peers in the Metals & Mining industry. While 1STLD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1STLD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1STLD was profitable.
In the past year 1STLD had a positive cash flow from operations.
In the past 5 years 1STLD has always been profitable.
1STLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1STLD has a Return On Assets of 10.29%. This is amongst the best in the industry. 1STLD outperforms 92.11% of its industry peers.
1STLD has a better Return On Equity (17.20%) than 89.47% of its industry peers.
1STLD's Return On Invested Capital of 11.76% is amongst the best of the industry. 1STLD outperforms 92.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1STLD is significantly above the industry average of 6.20%.
The last Return On Invested Capital (11.76%) for 1STLD is well below the 3 year average (21.22%), which needs to be investigated, but indicates that 1STLD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.29% | ||
| ROE | 17.2% | ||
| ROIC | 11.76% |
ROA(3y)18%
ROA(5y)17.12%
ROE(3y)30.79%
ROE(5y)31.2%
ROIC(3y)21.22%
ROIC(5y)20.87%
1.3 Margins
The Profit Margin of 1STLD (8.76%) is better than 76.32% of its industry peers.
1STLD's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.08%, 1STLD is doing good in the industry, outperforming 65.79% of the companies in the same industry.
1STLD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 15.98%, 1STLD is doing worse than 63.16% of the companies in the same industry.
In the last couple of years the Gross Margin of 1STLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.08% | ||
| PM (TTM) | 8.76% | ||
| GM | 15.98% |
OM growth 3Y-22.02%
OM growth 5Y3.27%
PM growth 3Y-20.53%
PM growth 5Y6.45%
GM growth 3Y-18.14%
GM growth 5Y1.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1STLD is creating value.
Compared to 1 year ago, 1STLD has less shares outstanding
The number of shares outstanding for 1STLD has been reduced compared to 5 years ago.
1STLD has a worse debt/assets ratio than last year.
2.2 Solvency
1STLD has an Altman-Z score of 5.14. This indicates that 1STLD is financially healthy and has little risk of bankruptcy at the moment.
1STLD's Altman-Z score of 5.14 is amongst the best of the industry. 1STLD outperforms 94.74% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that 1STLD is not too dependend on debt financing.
1STLD has a Debt to Equity ratio (0.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.14 |
ROIC/WACC1.26
WACC9.35%
2.3 Liquidity
A Current Ratio of 2.53 indicates that 1STLD has no problem at all paying its short term obligations.
1STLD has a better Current ratio (2.53) than 84.21% of its industry peers.
1STLD has a Quick Ratio of 1.08. This is a normal value and indicates that 1STLD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.08, 1STLD is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
1STLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.23%.
1STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.97% yearly.
The Revenue has decreased by -6.68% in the past year.
Measured over the past years, 1STLD shows a quite strong growth in Revenue. The Revenue has been growing by 10.88% on average per year.
EPS 1Y (TTM)-34.23%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-47.89%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-8.53%
3.2 Future
The Earnings Per Share is expected to grow by 9.83% on average over the next years. This is quite good.
1STLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.10% yearly.
EPS Next Y-1.9%
EPS Next 2Y13.51%
EPS Next 3Y13.59%
EPS Next 5Y9.83%
Revenue Next Year1.41%
Revenue Next 2Y4.92%
Revenue Next 3Y4.1%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.86, the valuation of 1STLD can be described as correct.
76.32% of the companies in the same industry are more expensive than 1STLD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.12. 1STLD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.12 indicates a correct valuation of 1STLD.
1STLD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, 1STLD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
1STLD's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.77 |
4.3 Compensation for Growth
1STLD has an outstanding profitability rating, which may justify a higher PE ratio.
1STLD's earnings are expected to grow with 13.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y13.51%
EPS Next 3Y13.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, 1STLD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.85, 1STLD has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, 1STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
On average, the dividend of 1STLD grows each year by 14.82%, which is quite nice.
Dividend Growth(5Y)14.82%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
18.39% of the earnings are spent on dividend by 1STLD. This is a low number and sustainable payout ratio.
The dividend of 1STLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.39%
EPS Next 2Y13.51%
EPS Next 3Y13.59%
BIT:1STLD (3/20/2025, 7:00:00 PM)
116.8
-4.6 (-3.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.02%
Inst Owner ChangeN/A
Ins Owners6.09%
Ins Owner ChangeN/A
Market Cap17.51B
Analysts74.29
Price Target135.56 (16.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend1.68
Dividend Growth(5Y)14.82%
DP18.39%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.15%
Min EPS beat(2)1.77%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)2.17%
Min EPS beat(4)-0.23%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)1.7%
EPS beat(12)8
Avg EPS beat(12)3.75%
EPS beat(16)10
Avg EPS beat(16)3.19%
Revenue beat(2)1
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)1.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)2.42%
Revenue beat(8)4
Avg Revenue beat(8)-2.08%
Revenue beat(12)8
Avg Revenue beat(12)-0.56%
Revenue beat(16)10
Avg Revenue beat(16)-0.21%
PT rev (1m)6.34%
PT rev (3m)6.34%
EPS NQ rev (1m)-45.1%
EPS NQ rev (3m)-45.1%
EPS NY rev (1m)-6.12%
EPS NY rev (3m)-6.12%
Revenue NQ rev (1m)-10.04%
Revenue NQ rev (3m)-10.04%
Revenue NY rev (1m)-1.64%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 13.12 | ||
| P/S | 1.08 | ||
| P/FCF | N/A | ||
| P/OCF | 10.25 | ||
| P/B | 2.12 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 8.77 |
EPS(TTM)9.08
EY7.77%
EPS(NY)8.9
Fwd EY7.62%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)11.4
OCFY9.76%
SpS108.38
BVpS55.2
TBVpS50.85
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.29% | ||
| ROE | 17.2% | ||
| ROCE | 15.2% | ||
| ROIC | 11.76% | ||
| ROICexc | 12.48% | ||
| ROICexgc | 13.26% | ||
| OM | 11.08% | ||
| PM (TTM) | 8.76% | ||
| GM | 15.98% | ||
| FCFM | N/A |
ROA(3y)18%
ROA(5y)17.12%
ROE(3y)30.79%
ROE(5y)31.2%
ROIC(3y)21.22%
ROIC(5y)20.87%
ROICexc(3y)25.25%
ROICexc(5y)24.52%
ROICexgc(3y)27.22%
ROICexgc(5y)26.63%
ROCE(3y)27.41%
ROCE(5y)26.96%
ROICexcg growth 3Y-30.82%
ROICexcg growth 5Y-3.41%
ROICexc growth 3Y-30.22%
ROICexc growth 5Y-1.67%
OM growth 3Y-22.02%
OM growth 5Y3.27%
PM growth 3Y-20.53%
PM growth 5Y6.45%
GM growth 3Y-18.14%
GM growth 5Y1.78%
F-Score4
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 390.06% | ||
| Cap/Sales | 10.65% | ||
| Interest Coverage | 19.24 | ||
| Cash Conversion | 76.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.53 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 5.14 |
F-Score4
WACC9.35%
ROIC/WACC1.26
Cap/Depr(3y)335.1%
Cap/Depr(5y)332.49%
Cap/Sales(3y)7.85%
Cap/Sales(5y)8.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.23%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-47.89%
EPS Next Y-1.9%
EPS Next 2Y13.51%
EPS Next 3Y13.59%
EPS Next 5Y9.83%
Revenue 1Y (TTM)-6.68%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-8.53%
Revenue Next Year1.41%
Revenue Next 2Y4.92%
Revenue Next 3Y4.1%
Revenue Next 5YN/A
EBIT growth 1Y-38.34%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year21.2%
EBIT Next 3Y19.42%
EBIT Next 5Y14.13%
FCF growth 1Y-101.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-47.6%
OCF growth 3Y-5.76%
OCF growth 5Y5.73%