NUCOR CORP (NUE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NUE - US6703461052 - Common Stock
169.35 USD
+1.22 (+0.73%)
170.5 USD
+1.15 (+0.68%)
NUE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 157 industry peers in the Metals & Mining industry. NUE has an excellent profitability rating, 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
In the past year NUE was profitable.
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
The Return On Assets of NUE (4.73%) is better than 73.89% of its industry peers.
The Return On Equity of NUE (7.93%) is better than 70.06% of its industry peers.
The Return On Invested Capital of NUE (6.50%) is better than 65.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NUE is significantly above the industry average of 10.33%.
The last Return On Invested Capital (6.50%) 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 | 4.73% | ||
| ROE | 7.93% | ||
| ROIC | 6.5% |
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 5.16%, NUE is doing good in the industry, outperforming 68.15% of the companies in the same industry.
NUE's Profit Margin has improved in the last couple of years.
NUE has a Operating Margin of 7.90%. This is in the better half of the industry: NUE outperforms 61.78% of its industry peers.
NUE's Operating Margin has improved in the last couple of years.
NUE has a Gross Margin (11.43%) which is in line with its industry peers.
NUE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 5.16% | ||
| GM | 11.43% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NUE is still creating some value.
Compared to 1 year ago, NUE has less shares outstanding
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 4.33 indicates that NUE is not in any danger for bankruptcy at the moment.
The Altman-Z score of NUE (4.33) is better than 60.51% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that NUE is not too dependend on debt financing.
NUE has a worse Debt to Equity ratio (0.33) than 65.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.33 |
ROIC/WACC0.65
WACC10.04%
2.3 Liquidity
NUE has a Current Ratio of 2.77. This indicates that NUE is financially healthy and has no problem in meeting its short term obligations.
NUE has a Current ratio (2.77) which is comparable to the rest of the industry.
NUE has a Quick Ratio of 1.51. This is a normal value and indicates that NUE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.51, NUE is in line with its industry, outperforming 49.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for NUE have decreased strongly by -32.62% 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.
Looking at the last year, NUE shows a small growth in Revenue. The Revenue has grown by 1.66% in the last year.
Measured over the past years, NUE shows a small growth in Revenue. The Revenue has been growing by 6.35% on average per year.
EPS 1Y (TTM)-32.62%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%76.51%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%14.47%
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.
Based on estimates for the next years, NUE will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y-6.78%
EPS Next 2Y15.19%
EPS Next 3Y14.69%
EPS Next 5Y4.45%
Revenue Next Year7.14%
Revenue Next 2Y6.89%
Revenue Next 3Y5.93%
Revenue Next 5Y4.83%
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
NUE is valuated rather expensively with a Price/Earnings ratio of 23.29.
Based on the Price/Earnings ratio, NUE is valued cheaper than 80.25% of the companies in the same industry.
NUE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.42 indicates a correct valuation of NUE.
Based on the Price/Forward Earnings ratio, NUE is valued a bit cheaper than 70.70% of the companies in the same industry.
NUE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
76.43% of the companies in the same industry are more expensive than NUE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
NUE has an outstanding profitability rating, which may justify a higher PE ratio.
NUE's earnings are expected to grow with 14.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y15.19%
EPS Next 3Y14.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, NUE has a reasonable but not impressive dividend return.
NUE's Dividend Yield is rather good when compared to the industry average which is at 0.99. NUE pays more dividend than 80.89% of the companies in the same industry.
NUE's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of NUE is nicely growing with an annual growth rate of 6.08%!
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)6.08%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
31.17% 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.
DP31.17%
EPS Next 2Y15.19%
EPS Next 3Y14.69%
169.35
+1.22 (+0.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners76.76%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change-0.41%
Market Cap38.76B
Revenue(TTM)31.88B
Net Income(TTM)1.65B
Analysts80.95
Price Target179.99 (6.28%)
Short Float %1.88%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.18
Dividend Growth(5Y)6.08%
DP31.17%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.94%
Min EPS beat(2)-1.2%
Max EPS beat(2)19.08%
EPS beat(4)3
Avg EPS beat(4)30.03%
Min EPS beat(4)-1.2%
Max EPS beat(4)84.88%
EPS beat(8)6
Avg EPS beat(8)16.91%
EPS beat(12)10
Avg EPS beat(12)14.75%
EPS beat(16)12
Avg EPS beat(16)11.55%
Revenue beat(2)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)3.46%
Revenue beat(4)3
Avg Revenue beat(4)3.12%
Min Revenue beat(4)-1.93%
Max Revenue beat(4)7.36%
Revenue beat(8)5
Avg Revenue beat(8)1.82%
Revenue beat(12)7
Avg Revenue beat(12)1.28%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)5.61%
PT rev (3m)12.55%
EPS NQ rev (1m)-8.15%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 14.42 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 12.23 | ||
| P/B | 1.87 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 10.61 |
EPS(TTM)7.27
EY4.29%
EPS(NY)11.74
Fwd EY6.93%
FCF(TTM)-1.45
FCFYN/A
OCF(TTM)13.84
OCFY8.17%
SpS139.31
BVpS90.75
TBVpS59.13
PEG (NY)N/A
PEG (5Y)1.46
Graham Number121.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 7.93% | ||
| ROCE | 8.25% | ||
| ROIC | 6.5% | ||
| ROICexc | 7.14% | ||
| ROICexgc | 9.64% | ||
| OM | 7.9% | ||
| PM (TTM) | 5.16% | ||
| GM | 11.43% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y-36.34%
ROICexgc 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-Score6
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 239.82% | ||
| Cap/Sales | 10.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 4.33 |
F-Score6
WACC10.04%
ROIC/WACC0.65
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)-32.62%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%76.51%
EPS Next Y-6.78%
EPS Next 2Y15.19%
EPS Next 3Y14.69%
EPS Next 5Y4.45%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%14.47%
Revenue Next Year7.14%
Revenue Next 2Y6.89%
Revenue Next 3Y5.93%
Revenue Next 5Y4.83%
EBIT growth 1Y-30.65%
EBIT growth 3Y-31.62%
EBIT growth 5Y8.65%
EBIT Next Year49.35%
EBIT Next 3Y25.6%
EBIT Next 5Y16.35%
FCF growth 1Y-105.41%
FCF growth 3Y-44.08%
FCF growth 5Y-9.56%
OCF growth 1Y-61.01%
OCF growth 3Y-13.89%
OCF growth 5Y7.21%
NUCOR CORP / NUE FAQ
What is the ChartMill fundamental rating of NUCOR CORP (NUE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NUE.
What is the valuation status of NUCOR CORP (NUE) stock?
ChartMill assigns a valuation rating of 4 / 10 to NUCOR CORP (NUE). This can be considered as Fairly Valued.
How profitable is NUCOR CORP (NUE) stock?
NUCOR CORP (NUE) has a profitability rating of 8 / 10.
What is the financial health of NUCOR CORP (NUE) stock?
The financial health rating of NUCOR CORP (NUE) is 5 / 10.
What is the earnings growth outlook for NUCOR CORP?
The Earnings per Share (EPS) of NUCOR CORP (NUE) is expected to decline by -6.78% in the next year.