NUCOR CORP (NUE) Stock Fundamental Analysis
NYSE:NUE - New York Stock Exchange, Inc. - US6703461052 - Common Stock - Currency: USD
Taking everything into account, NUE scores 6 out of 10 in our fundamental rating. NUE was compared to 154 industry peers in the Metals & Mining industry. NUE scores excellent on profitability, but there are some minor concerns on its financial health. NUE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
NUE had positive earnings in the past year.
NUE had a positive operating cash flow in the past year.
NUE had positive earnings in each of the past 5 years.
Each year in the past 5 years NUE had a positive operating cash flow.
1.2 Ratios
NUE has a Return On Assets of 5.95%. This is in the better half of the industry: NUE outperforms 77.92% of its industry peers.
NUE has a better Return On Equity (9.94%) than 75.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.07%, NUE is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NUE is significantly above the industry average of 8.83%.
The last Return On Invested Capital (8.07%) for NUE is well below the 3 year average (17.84%), which needs to be investigated, but indicates that NUE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 9.94% | ||
| ROIC | 8.07% |
ROA(3y)14.01%
ROA(5y)14.38%
ROE(3y)24.2%
ROE(5y)25.55%
ROIC(3y)17.84%
ROIC(5y)19.27%
1.3 Margins
With a decent Profit Margin value of 6.57%, NUE is doing good in the industry, outperforming 74.03% of the companies in the same industry.
In the last couple of years the Profit Margin of NUE has grown nicely.
NUE has a better Operating Margin (9.69%) than 65.58% of its industry peers.
NUE's Operating Margin has improved in the last couple of years.
NUE has a Gross Margin (13.35%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NUE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 6.57% | ||
| GM | 13.35% |
OM growth 3Y-27.6%
OM growth 5Y2.16%
PM growth 3Y-29.36%
PM growth 5Y3.25%
GM growth 3Y-23.78%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
NUE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NUE has less shares outstanding than it did 1 year ago.
NUE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NUE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.87 indicates that NUE is not in any danger for bankruptcy at the moment.
NUE's Altman-Z score of 3.87 is fine compared to the rest of the industry. NUE outperforms 67.53% of its industry peers.
The Debt to FCF ratio of NUE is 8.62, which is on the high side as it means it would take NUE, 8.62 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.62, NUE is doing good in the industry, outperforming 64.94% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that NUE is not too dependend on debt financing.
NUE has a Debt to Equity ratio of 0.29. This is in the lower half of the industry: NUE underperforms 61.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 3.87 |
ROIC/WACC0.83
WACC9.77%
2.3 Liquidity
NUE has a Current Ratio of 2.51. This indicates that NUE is financially healthy and has no problem in meeting its short term obligations.
NUE has a Current ratio (2.51) which is comparable to the rest of the industry.
NUE has a Quick Ratio of 1.48. This is a normal value and indicates that NUE is financially healthy and should not expect problems in meeting its short term obligations.
NUE's Quick ratio of 1.48 is in line compared to the rest of the industry. NUE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The earnings per share for NUE have decreased strongly by -63.76% in the last year.
NUE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.91% yearly.
NUE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.46%.
NUE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
EPS 1Y (TTM)-63.76%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-77.75%
Revenue 1Y (TTM)-11.46%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%-3.77%
3.2 Future
NUE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.45% yearly.
NUE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.97% yearly.
EPS Next Y-11.44%
EPS Next 2Y11.73%
EPS Next 3Y16.08%
EPS Next 5Y4.45%
Revenue Next Year6.03%
Revenue Next 2Y5.22%
Revenue Next 3Y5.97%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NUE is valuated rather expensively with a Price/Earnings ratio of 18.67.
Compared to the rest of the industry, the Price/Earnings ratio of NUE indicates a somewhat cheap valuation: NUE is cheaper than 78.57% of the companies listed in the same industry.
NUE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
With a Price/Forward Earnings ratio of 10.41, the valuation of NUE can be described as very reasonable.
76.62% of the companies in the same industry are more expensive than NUE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NUE to the average of the S&P500 Index (22.43), we can say NUE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
NUE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NUE is cheaper than 81.82% of the companies in the same industry.
NUE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NUE is cheaper than 70.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.89 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
NUE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NUE's earnings are expected to grow with 16.08% in the coming years.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y11.73%
EPS Next 3Y16.08%
5. Dividend
5.1 Amount
NUE has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, NUE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NUE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of NUE grows each year by 6.08%, which is quite nice.
NUE has paid a dividend for at least 10 years, which is a reliable track record.
NUE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.08%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
25.87% of the earnings are spent on dividend by NUE. This is a low number and sustainable payout ratio.
The dividend of NUE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.87%
EPS Next 2Y11.73%
EPS Next 3Y16.08%
115
-0.82 (-0.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners78.28%
Inst Owner Change-3.13%
Ins Owners0.53%
Ins Owner Change0.38%
Market Cap26.51B
Analysts76
Price Target149.55 (30.04%)
Short Float %2.46%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend2.18
Dividend Growth(5Y)6.08%
DP25.87%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.56%
Min EPS beat(2)0.23%
Max EPS beat(2)84.88%
EPS beat(4)3
Avg EPS beat(4)22.99%
Min EPS beat(4)-6.27%
Max EPS beat(4)84.88%
EPS beat(8)7
Avg EPS beat(8)15.78%
EPS beat(12)10
Avg EPS beat(12)12.48%
EPS beat(16)11
Avg EPS beat(16)9.68%
Revenue beat(2)2
Avg Revenue beat(2)2.41%
Min Revenue beat(2)1.24%
Max Revenue beat(2)3.59%
Revenue beat(4)3
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)4.06%
Revenue beat(8)4
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.78%
Revenue beat(16)9
Avg Revenue beat(16)0.64%
PT rev (1m)-4.39%
PT rev (3m)-6.04%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)-40.01%
EPS NY rev (1m)-3.1%
EPS NY rev (3m)6.81%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)1.9%
Revenue NY rev (3m)6.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 10.41 | ||
| P/S | 0.86 | ||
| P/FCF | 32.89 | ||
| P/OCF | 6.66 | ||
| P/B | 1.31 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)6.16
EY5.36%
EPS(NY)11.05
Fwd EY9.61%
FCF(TTM)3.5
FCFY3.04%
OCF(TTM)17.26
OCFY15.01%
SpS133.31
BVpS88.03
TBVpS55.83
PEG (NY)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 9.94% | ||
| ROCE | 10.29% | ||
| ROIC | 8.07% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 13.37% | ||
| OM | 9.69% | ||
| PM (TTM) | 6.57% | ||
| GM | 13.35% | ||
| FCFM | 2.62% |
ROA(3y)14.01%
ROA(5y)14.38%
ROE(3y)24.2%
ROE(5y)25.55%
ROIC(3y)17.84%
ROIC(5y)19.27%
ROICexc(3y)21.93%
ROICexc(5y)23.06%
ROICexgc(3y)31.53%
ROICexgc(5y)31.51%
ROCE(3y)22.62%
ROCE(5y)24.46%
ROICexcg growth 3Y-36.34%
ROICexcg growth 5Y-0.84%
ROICexc growth 3Y-38.58%
ROICexc growth 5Y-3.14%
OM growth 3Y-27.6%
OM growth 5Y2.16%
PM growth 3Y-29.36%
PM growth 5Y3.25%
GM growth 3Y-23.78%
GM growth 5Y2.32%
F-Score5
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 8.62 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 234% | ||
| Cap/Sales | 10.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.79% | ||
| Profit Quality | 39.94% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.87 |
F-Score5
WACC9.77%
ROIC/WACC0.83
Cap/Depr(3y)202.33%
Cap/Depr(5y)198.22%
Cap/Sales(3y)7.13%
Cap/Sales(5y)6.7%
Profit Quality(3y)85.27%
Profit Quality(5y)96.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-63.76%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-77.75%
EPS Next Y-11.44%
EPS Next 2Y11.73%
EPS Next 3Y16.08%
EPS Next 5Y4.45%
Revenue 1Y (TTM)-11.46%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%-3.77%
Revenue Next Year6.03%
Revenue Next 2Y5.22%
Revenue Next 3Y5.97%
Revenue Next 5YN/A
EBIT growth 1Y-52.19%
EBIT growth 3Y-31.62%
EBIT growth 5Y8.65%
EBIT Next Year41.99%
EBIT Next 3Y23.85%
EBIT Next 5Y17.32%
FCF growth 1Y-83.54%
FCF growth 3Y-44.08%
FCF growth 5Y-9.56%
OCF growth 1Y-44.05%
OCF growth 3Y-13.89%
OCF growth 5Y7.21%