NUCOR CORP (NUE)
US6703461052 - Common Stock
We assign a fundamental rating of 7 out of 10 to NUE. NUE was compared to 157 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making NUE a very profitable company, without any liquidiy or solvency issues. NUE is cheap, but on the other hand it scores bad on growth. These ratings could make NUE a good candidate for value investing.
1. Profitability
1.1 Basic Checks
NUE had positive earnings in the past year.
In the past year NUE had a positive cash flow from operations.
NUE had positive earnings in each of the past 5 years.
In the past 5 years NUE always reported a positive cash flow from operatings.
1.2 Ratios
NUE has a Return On Assets of 12.42%. This is amongst the best in the industry. NUE outperforms 92.99% of its industry peers.
Looking at the Return On Equity, with a value of 20.37%, NUE belongs to the top of the industry, outperforming 90.45% of the companies in the same industry.
NUE has a better Return On Invested Capital (14.99%) than 91.72% of its industry peers.
NUE had an Average Return On Invested Capital over the past 3 years of 26.80%. This is significantly above the industry average of 8.91%.
The 3 year average ROIC (26.80%) for NUE is well above the current ROIC(14.99%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.42% | ||
| ROE | 20.37% | ||
| ROIC | 14.99% |
ROA(3y)20.8%
ROA(5y)14.57%
ROE(3y)37.05%
ROE(5y)26%
ROIC(3y)26.8%
ROIC(5y)19.48%
1.3 Margins
NUE has a Profit Margin of 12.35%. This is amongst the best in the industry. NUE outperforms 84.08% of its industry peers.
In the last couple of years the Profit Margin of NUE has grown nicely.
NUE has a Operating Margin of 16.99%. This is in the better half of the industry: NUE outperforms 74.52% of its industry peers.
NUE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.50%, NUE is in the better half of the industry, outperforming 61.78% of the companies in the same industry.
In the last couple of years the Gross Margin of NUE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.99% | ||
| PM (TTM) | 12.35% | ||
| GM | 21.5% |
OM growth 3Y30.38%
OM growth 5Y5.64%
PM growth 3Y53.94%
PM growth 5Y6.72%
GM growth 3Y26.47%
GM growth 5Y5.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NUE is creating value.
NUE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NUE has been reduced compared to 5 years ago.
The debt/assets ratio for NUE has been reduced compared to a year ago.
2.2 Solvency
NUE has an Altman-Z score of 4.88. This indicates that NUE is financially healthy and has little risk of bankruptcy at the moment.
NUE has a Altman-Z score of 4.88. This is in the better half of the industry: NUE outperforms 73.89% of its industry peers.
NUE has a debt to FCF ratio of 1.71. This is a very positive value and a sign of high solvency as it would only need 1.71 years to pay back of all of its debts.
The Debt to FCF ratio of NUE (1.71) is better than 82.80% of its industry peers.
NUE has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.33, NUE is not doing good in the industry: 64.97% of the companies in the same industry are doing better.
Although NUE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 4.88 |
ROIC/WACC1.87
WACC8.03%
2.3 Liquidity
NUE has a Current Ratio of 4.02. This indicates that NUE is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.02, NUE is doing good in the industry, outperforming 73.25% of the companies in the same industry.
NUE has a Quick Ratio of 2.48. This indicates that NUE is financially healthy and has no problem in meeting its short term obligations.
NUE has a better Quick ratio (2.48) than 66.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.02 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
NUE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.94%.
NUE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.68% yearly.
Looking at the last year, NUE shows a very negative growth in Revenue. The Revenue has decreased by -16.38% in the last year.
The Revenue has been growing slightly by 6.73% on average over the past years.
EPS 1Y (TTM)-35.94%
EPS 3Y76%
EPS 5Y18.68%
EPS Q2Q%-53.87%
Revenue 1Y (TTM)-16.38%
Revenue growth 3Y19.9%
Revenue growth 5Y6.73%
Sales Q2Q%-15.18%
3.2 Future
NUE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.21% yearly.
NUE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
EPS Next Y-32.19%
EPS Next 2Y-15.92%
EPS Next 3Y-9.21%
EPS Next 5YN/A
Revenue Next Year-9.04%
Revenue Next 2Y-3.63%
Revenue Next 3Y-0.24%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.60, which indicates a very decent valuation of NUE.
Based on the Price/Earnings ratio, NUE is valued cheaply inside the industry as 82.80% of the companies are valued more expensively.
NUE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
The Price/Forward Earnings ratio is 12.65, which indicates a correct valuation of NUE.
NUE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NUE is cheaper than 71.97% of the companies in the same industry.
NUE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NUE indicates a rather cheap valuation: NUE is cheaper than 85.35% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NUE is valued cheaper than 89.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.61 | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
The excellent profitability rating of NUE may justify a higher PE ratio.
NUE's earnings are expected to decrease with -9.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-15.92%
EPS Next 3Y-9.21%
5. Dividend
5.1 Amount
NUE has a Yearly Dividend Yield of 1.40%.
NUE's Dividend Yield is a higher than the industry average which is at 2.66.
NUE's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of NUE has a limited annual growth rate of 5.86%.
NUE has paid a dividend for at least 10 years, which is a reliable track record.
NUE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.86%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
NUE pays out 12.27% of its income as dividend. This is a sustainable payout ratio.
DP12.27%
EPS Next 2Y-15.92%
EPS Next 3Y-9.21%
NUCOR CORP
NYSE:NUE (7/26/2024, 7:04:00 PM)
After market: 160.315 -0.57 (-0.36%)160.89
+3.87 (+2.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 12.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.42% | ||
| ROE | 20.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.99% | ||
| PM (TTM) | 12.35% | ||
| GM | 21.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.02 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-35.94%
EPS 3Y76%
EPS 5Y
EPS Q2Q%
EPS Next Y-32.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.38%
Revenue growth 3Y19.9%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y