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. While NUE has a great profitability rating, there are some minor concerns on its financial health. NUE has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years NUE has always been profitable.
In the past 5 years NUE always reported a positive cash flow from operatings.
1.2 Ratios
NUE has a better Return On Assets (3.84%) than 72.08% of its industry peers.
The Return On Equity of NUE (6.64%) is better than 71.43% of its industry peers.
With a decent Return On Invested Capital value of 5.64%, NUE is doing good in the industry, outperforming 66.23% of the companies in the same industry.
NUE had an Average Return On Invested Capital over the past 3 years of 17.84%. This is significantly above the industry average of 11.67%.
The last Return On Invested Capital (5.64%) 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 | 3.84% | ||
| ROE | 6.64% | ||
| ROIC | 5.64% |
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 4.38% is fine compared to the rest of the industry. NUE outperforms 69.48% of its industry peers.
In the last couple of years the Profit Margin of NUE has grown nicely.
NUE has a Operating Margin of 6.98%. This is comparable to the rest of the industry: NUE outperforms 59.74% of its industry peers.
In the last couple of years the Operating Margin of NUE has grown nicely.
NUE's Gross Margin of 10.46% is in line compared to the rest of the industry. NUE outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of NUE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | 4.38% | ||
| GM | 10.46% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NUE is creating value.
The number of shares outstanding for NUE has been reduced compared to 1 year ago.
Compared to 5 years ago, NUE has less shares outstanding
Compared to 1 year ago, NUE has a worse debt to assets ratio.
2.2 Solvency
NUE has an Altman-Z score of 3.84. This indicates that NUE is financially healthy and has little risk of bankruptcy at the moment.
NUE has a Altman-Z score of 3.84. This is in the better half of the industry: NUE outperforms 67.53% of its industry peers.
The Debt to FCF ratio of NUE is 15.10, which is on the high side as it means it would take NUE, 15.10 years of fcf income to pay off all of its debts.
NUE's Debt to FCF ratio of 15.10 is fine compared to the rest of the industry. NUE outperforms 62.34% of its industry peers.
NUE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, NUE is not doing good in the industry: 66.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 15.1 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.65
WACC8.68%
2.3 Liquidity
NUE has a Current Ratio of 2.52. This indicates that NUE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.52, NUE is in line with its industry, outperforming 56.49% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that NUE should not have too much problems paying its short term obligations.
NUE has a Quick ratio of 1.48. This is comparable to the rest of the industry: NUE outperforms 49.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| 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.
The Earnings Per Share has been growing by 15.91% on average over the past years. This is quite good.
Looking at the last year, NUE shows a very negative growth in Revenue. The Revenue has decreased by -10.88% in the last year.
The Revenue has been growing slightly by 6.35% on average over the past years.
EPS 1Y (TTM)-63.76%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-77.75%
Revenue 1Y (TTM)-10.88%
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.
Based on estimates for the next years, NUE will show a small growth in Revenue. The Revenue will grow by 5.44% on average per year.
EPS Next Y-11.58%
EPS Next 2Y10.43%
EPS Next 3Y13.87%
EPS Next 5Y4.45%
Revenue Next Year6.44%
Revenue Next 2Y5.11%
Revenue Next 3Y5.44%
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
Based on the Price/Earnings ratio of 22.56, the valuation of NUE can be described as rather expensive.
74.68% of the companies in the same industry are more expensive than NUE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.21. NUE is around the same levels.
A Price/Forward Earnings ratio of 12.87 indicates a correct valuation of NUE.
66.23% of the companies in the same industry are more expensive than NUE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.70. NUE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 12.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NUE is valued a bit cheaper than the industry average as 70.78% of the companies are valued more expensively.
NUE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NUE is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.46 | ||
| EV/EBITDA | 9.54 |
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 13.87% in the coming years.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y10.43%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, NUE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.98, NUE pays a bit more dividend than its industry peers.
NUE's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of NUE is nicely growing with an annual growth rate of 6.08%!
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
38.83% 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.
DP38.83%
EPS Next 2Y10.43%
EPS Next 3Y13.87%
138.94
+4.83 (+3.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners76.98%
Inst Owner Change-3.15%
Ins Owners0.47%
Ins Owner Change0.48%
Market Cap32.06B
Analysts75.24
Price Target148.48 (6.87%)
Short Float %2.97%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend2.18
Dividend Growth(5Y)6.08%
DP38.83%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.13%
Min EPS beat(2)17.38%
Max EPS beat(2)84.88%
EPS beat(4)4
Avg EPS beat(4)28.9%
Min EPS beat(4)0.23%
Max EPS beat(4)84.88%
EPS beat(8)7
Avg EPS beat(8)16%
EPS beat(12)10
Avg EPS beat(12)13.58%
EPS beat(16)12
Avg EPS beat(16)10.77%
Revenue beat(2)2
Avg Revenue beat(2)5.47%
Min Revenue beat(2)3.59%
Max Revenue beat(2)7.36%
Revenue beat(4)4
Avg Revenue beat(4)4.06%
Min Revenue beat(4)1.24%
Max Revenue beat(4)7.36%
Revenue beat(8)5
Avg Revenue beat(8)1.95%
Revenue beat(12)8
Avg Revenue beat(12)1.55%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)-0.72%
PT rev (3m)-5.13%
EPS NQ rev (1m)1.59%
EPS NQ rev (3m)5.06%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)5.88%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 12.87 | ||
| P/S | 1.05 | ||
| P/FCF | 61.46 | ||
| P/OCF | 8.26 | ||
| P/B | 1.6 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)6.16
EY4.43%
EPS(NY)10.79
Fwd EY7.77%
FCF(TTM)2.26
FCFY1.63%
OCF(TTM)16.83
OCFY12.11%
SpS131.86
BVpS86.97
TBVpS55.09
PEG (NY)N/A
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 6.64% | ||
| ROCE | 7.17% | ||
| ROIC | 5.64% | ||
| ROICexc | 6.53% | ||
| ROICexgc | 9.15% | ||
| OM | 6.98% | ||
| PM (TTM) | 4.38% | ||
| GM | 10.46% | ||
| FCFM | 1.71% |
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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 15.1 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 238.69% | ||
| Cap/Sales | 11.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.9% | ||
| Profit Quality | 39.15% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.84 |
F-Score5
WACC8.68%
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)-63.76%
EPS 3Y-27.81%
EPS 5Y15.91%
EPS Q2Q%-77.75%
EPS Next Y-11.58%
EPS Next 2Y10.43%
EPS Next 3Y13.87%
EPS Next 5Y4.45%
Revenue 1Y (TTM)-10.88%
Revenue growth 3Y-5.56%
Revenue growth 5Y6.35%
Sales Q2Q%-3.77%
Revenue Next Year6.44%
Revenue Next 2Y5.11%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
EBIT growth 1Y-63.36%
EBIT growth 3Y-31.62%
EBIT growth 5Y8.65%
EBIT Next Year41.07%
EBIT Next 3Y25.26%
EBIT Next 5Y17.92%
FCF growth 1Y-92.3%
FCF growth 3Y-44.08%
FCF growth 5Y-9.56%
OCF growth 1Y-55.91%
OCF growth 3Y-13.89%
OCF growth 5Y7.21%