NUCOR CORP (NUE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NUE - US6703461052 - Common Stock
167.88 USD
+3.07 (+1.86%)
168.638 USD
+0.76 (+0.45%)
We assign a fundamental rating of 5 out of 10 to NUE. NUE was compared to 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 is valued correctly, but it does not seem to be growing.
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
With a decent Return On Assets value of 4.73%, NUE is doing good in the industry, outperforming 73.89% of the companies in the same industry.
With a decent Return On Equity value of 7.93%, NUE is doing good in the industry, outperforming 70.06% of the companies in the same industry.
The Return On Invested Capital of NUE (6.50%) is better than 65.61% of its industry peers.
NUE had an Average Return On Invested Capital over the past 3 years of 17.84%. This 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
NUE's Profit Margin of 5.16% is fine compared to the rest of the industry. NUE outperforms 68.15% of its industry peers.
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.
In the last couple of years the Operating Margin of NUE has grown nicely.
With a Gross Margin value of 11.43%, NUE perfoms like the industry average, outperforming 41.40% of the companies in the same industry.
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.
The number of shares outstanding for NUE has been reduced compared to 1 year ago.
NUE has less shares outstanding than it did 5 years ago.
NUE has a worse debt/assets ratio than last year.
2.2 Solvency
NUE has an Altman-Z score of 4.29. This indicates that NUE is financially healthy and has little risk of bankruptcy at the moment.
NUE has a Altman-Z score of 4.29. This is in the better half of the industry: NUE outperforms 60.51% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that NUE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, NUE is not doing good in the industry: 65.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.29 |
ROIC/WACC0.65
WACC10.03%
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 in line with its industry peers.
A Quick Ratio of 1.51 indicates that NUE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.51, NUE perfoms like the industry average, 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.
The Earnings Per Share has been growing by 15.91% on average over the past years. This is quite good.
NUE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.66%.
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.
The Revenue is expected to grow by 4.83% on average over the next years.
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
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
A Price/Earnings ratio of 23.09 indicates a rather expensive valuation of NUE.
Based on the Price/Earnings ratio, NUE is valued cheaper than 81.53% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, NUE is valued at the same level.
NUE is valuated correctly with a Price/Forward Earnings ratio of 14.30.
71.97% of the companies in the same industry are more expensive than NUE, based on the Price/Forward Earnings ratio.
NUE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.09 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
NUE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NUE is cheaper than 76.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.35 |
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)1.45
EPS Next 2Y15.19%
EPS Next 3Y14.69%
5. Dividend
5.1 Amount
NUE has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
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.
Compared to the average S&P500 Dividend Yield of 1.94, NUE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
On average, the dividend of NUE grows each year by 6.08%, which is quite nice.
NUE has been paying a dividend for at least 10 years, so it has 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 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.
NUE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.17%
EPS Next 2Y15.19%
EPS Next 3Y14.69%
167.88
+3.07 (+1.86%)
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 Cap38.42B
Revenue(TTM)31.88B
Net Income(TTM)1.65B
Analysts80.95
Price Target179.99 (7.21%)
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 | 23.09 | ||
| Fwd PE | 14.3 | ||
| P/S | 1.21 | ||
| P/FCF | N/A | ||
| P/OCF | 12.13 | ||
| P/B | 1.85 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)7.27
EY4.33%
EPS(NY)11.74
Fwd EY7%
FCF(TTM)-1.45
FCFYN/A
OCF(TTM)13.84
OCFY8.25%
SpS139.31
BVpS90.75
TBVpS59.13
PEG (NY)N/A
PEG (5Y)1.45
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 | 4.29 |
F-Score6
WACC10.03%
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.