NUCOR CORP (NUE)
US6703461052 - Common Stock
We assign a fundamental rating of 7 out of 10 to NUE. NUE was compared to 155 industry peers in the Metals & Mining industry. NUE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NUE has a bad growth rate and is valued cheaply. These ratings would make NUE suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year NUE was profitable.
In the past year NUE had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 12.75%, NUE belongs to the top of the industry, outperforming 92.90% of the companies in the same industry.
NUE's Return On Equity of 21.52% is amongst the best of the industry. NUE outperforms 90.97% of its industry peers.
NUE has a Return On Invested Capital of 15.86%. This is amongst the best in the industry. NUE outperforms 92.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NUE is significantly above the industry average of 9.16%.
The last Return On Invested Capital (15.86%) for NUE is well below the 3 year average (26.80%), which needs to be investigated, but indicates that NUE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.75% | ||
| ROE | 21.52% | ||
| ROIC | 15.86% |
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 12.98%. This is amongst the best in the industry. NUE outperforms 83.23% of its industry peers.
NUE's Profit Margin has improved in the last couple of years.
NUE's Operating Margin of 17.95% is fine compared to the rest of the industry. NUE outperforms 76.13% of its industry peers.
NUE's Operating Margin has improved in the last couple of years.
NUE has a better Gross Margin (22.51%) than 61.29% of its industry peers.
NUE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.95% | ||
| PM (TTM) | 12.98% | ||
| GM | 22.51% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NUE is creating value.
Compared to 1 year ago, NUE has less shares outstanding
NUE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NUE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.83 indicates that NUE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.83, NUE is in the better half of the industry, outperforming 72.90% of the companies in the same industry.
NUE has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.40, NUE belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that NUE is not too dependend on debt financing.
The Debt to Equity ratio of NUE (0.32) is worse than 63.23% of its industry peers.
Even though the debt/equity ratio score it not favorable for NUE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 4.83 |
ROIC/WACC1.88
WACC8.42%
2.3 Liquidity
A Current Ratio of 3.57 indicates that NUE has no problem at all paying its short term obligations.
NUE has a better Current ratio (3.57) than 70.32% of its industry peers.
A Quick Ratio of 2.35 indicates that NUE has no problem at all paying its short term obligations.
NUE has a Quick ratio of 2.35. This is in the better half of the industry: NUE outperforms 63.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.57 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The earnings per share for NUE have decreased strongly by -37.38% 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 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.
NUE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.73% yearly.
EPS 1Y (TTM)-37.38%
EPS 3Y76%
EPS 5Y18.68%
EPS growth Q2Q-35.38%
Revenue 1Y (TTM)-16.38%
Revenue growth 3Y19.9%
Revenue growth 5Y6.73%
Revenue growth Q2Q-11.69%
3.2 Future
The Earnings Per Share is expected to decrease by -8.03% on average over the next years.
NUE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.07% yearly.
EPS Next Y-26.64%
EPS Next 2Y-14.03%
EPS Next 3Y-8.03%
EPS Next 5YN/A
Revenue Next Year-6.36%
Revenue Next 2Y-3.21%
Revenue Next 3Y0.07%
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.
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
Based on the Price/Earnings ratio of 9.78, the valuation of NUE can be described as reasonable.
Based on the Price/Earnings ratio, NUE is valued cheaper than 86.45% of the companies in the same industry.
NUE is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.33, the valuation of NUE can be described as correct.
Based on the Price/Forward Earnings ratio, NUE is valued a bit cheaper than 77.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, NUE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 13.33 |
4.2 Price Multiples
81.94% of the companies in the same industry are more expensive than NUE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NUE is valued cheaper than 89.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.62 | ||
| EV/EBITDA | 5.45 |
4.3 Compensation for Growth
NUE has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as NUE's earnings are expected to decrease with -8.03% in the coming years.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-14.03%
EPS Next 3Y-8.03%
5. Dividend
5.1 Amount
NUE has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.88, NUE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.24, NUE pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.86%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
11.42% of the earnings are spent on dividend by NUE. This is a low number and sustainable payout ratio.
DP11.42%
EPS Next 2Y-14.03%
EPS Next 3Y-8.03%
NUCOR CORP
NYSE:NUE (4/25/2024, 7:08:23 PM)
After market: 175.96 +0.08 (+0.05%)175.88
+3.12 (+1.81%)
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 Cap42.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 | 9.78 | ||
| Fwd PE | 13.33 | ||
| 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)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.75% | ||
| ROE | 21.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.95% | ||
| PM (TTM) | 12.98% | ||
| GM | 22.51% | ||
| 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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.57 | ||
| Quick Ratio | 2.35 | ||
| 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)
Growth
EPS 1Y (TTM)-37.38%
EPS 3Y76%
EPS 5Y
EPS growth Q2Q
EPS Next Y-26.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.38%
Revenue growth 3Y19.9%
Revenue growth 5Y
Revenue growth 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