STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
NASDAQ:STLD - Nasdaq - US8581191009 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to STLD. STLD was compared to 154 industry peers in the Metals & Mining industry. While STLD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STLD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year STLD was profitable.
STLD had a positive operating cash flow in the past year.
STLD had positive earnings in each of the past 5 years.
In the past 5 years STLD always reported a positive cash flow from operatings.
1.2 Ratios
STLD has a better Return On Assets (7.35%) than 81.82% of its industry peers.
STLD has a Return On Equity of 13.26%. This is amongst the best in the industry. STLD outperforms 83.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.31%, STLD is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STLD is significantly above the industry average of 8.83%.
The last Return On Invested Capital (8.31%) for STLD is well below the 3 year average (21.22%), which needs to be investigated, but indicates that STLD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 13.26% | ||
| ROIC | 8.31% |
ROA(3y)18%
ROA(5y)17.12%
ROE(3y)30.79%
ROE(5y)31.2%
ROIC(3y)21.22%
ROIC(5y)20.87%
1.3 Margins
With a decent Profit Margin value of 6.80%, STLD is doing good in the industry, outperforming 75.97% of the companies in the same industry.
STLD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.52%, STLD is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
In the last couple of years the Operating Margin of STLD has grown nicely.
STLD's Gross Margin of 13.41% is in line compared to the rest of the industry. STLD outperforms 46.10% of its industry peers.
In the last couple of years the Gross Margin of STLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.52% | ||
| PM (TTM) | 6.8% | ||
| GM | 13.41% |
OM growth 3Y-22.02%
OM growth 5Y3.27%
PM growth 3Y-20.53%
PM growth 5Y6.45%
GM growth 3Y-18.14%
GM growth 5Y1.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so STLD is creating value.
Compared to 1 year ago, STLD has less shares outstanding
The number of shares outstanding for STLD has been reduced compared to 5 years ago.
STLD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.71 indicates that STLD is not in any danger for bankruptcy at the moment.
STLD has a better Altman-Z score (4.71) than 74.03% of its industry peers.
STLD has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
STLD has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: STLD underperforms 70.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.71 |
ROIC/WACC0.86
WACC9.68%
2.3 Liquidity
A Current Ratio of 2.74 indicates that STLD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.74, STLD is in the better half of the industry, outperforming 61.04% of the companies in the same industry.
STLD has a Quick Ratio of 1.38. This is a normal value and indicates that STLD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.38, STLD is in line with its industry, outperforming 46.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
STLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.01%.
STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.97% yearly.
The Revenue has decreased by -7.42% in the past year.
Measured over the past years, STLD shows a quite strong growth in Revenue. The Revenue has been growing by 10.88% on average per year.
EPS 1Y (TTM)-48.01%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-60.76%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-6.92%
3.2 Future
STLD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.83% yearly.
STLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y0.38%
EPS Next 2Y14.06%
EPS Next 3Y14.32%
EPS Next 5Y9.83%
Revenue Next Year5.81%
Revenue Next 2Y5.85%
Revenue Next 3Y5.29%
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 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 17.50 indicates a rather expensive valuation of STLD.
STLD's Price/Earnings ratio is a bit cheaper when compared to the industry. STLD is cheaper than 79.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. STLD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.39, the valuation of STLD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, STLD is valued a bit cheaper than 75.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. STLD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 10.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STLD is valued a bit cheaper than 61.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates STLD does not grow enough to justify the current Price/Earnings ratio.
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
STLD's earnings are expected to grow with 14.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)45.74
PEG (5Y)0.67
EPS Next 2Y14.06%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
STLD's Dividend Yield is a higher than the industry average which is at 3.00.
STLD's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
On average, the dividend of STLD grows each year by 14.82%, which is quite nice.
STLD has paid a dividend for at least 10 years, which is a reliable track record.
STLD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.82%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
STLD pays out 24.28% of its income as dividend. This is a sustainable payout ratio.
STLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.28%
EPS Next 2Y14.06%
EPS Next 3Y14.32%
NASDAQ:STLD (5/21/2025, 3:32:09 PM)
132.48
-2.9 (-2.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.02%
Inst Owner Change-1.25%
Ins Owners6.09%
Ins Owner Change1.29%
Market Cap19.86B
Analysts77.14
Price Target149.73 (13.02%)
Short Float %1.82%
Short Ratio1.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend1.82
Dividend Growth(5Y)14.82%
DP24.28%
Div Incr Years12
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.3%
Min EPS beat(2)2.08%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)2.04%
Min EPS beat(4)-0.23%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)0.51%
EPS beat(12)8
Avg EPS beat(12)3.56%
EPS beat(16)10
Avg EPS beat(16)2.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)2.08%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)2.42%
Revenue beat(8)5
Avg Revenue beat(8)-1.31%
Revenue beat(12)8
Avg Revenue beat(12)-0.61%
Revenue beat(16)10
Avg Revenue beat(16)-0.21%
PT rev (1m)0.13%
PT rev (3m)5.61%
EPS NQ rev (1m)1.42%
EPS NQ rev (3m)28.66%
EPS NY rev (1m)-2.82%
EPS NY rev (3m)11.99%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)8.92%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)5.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | 10.39 | ||
| P/S | 1.15 | ||
| P/FCF | N/A | ||
| P/OCF | 12.1 | ||
| P/B | 2.25 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 11.84 |
EPS(TTM)7.57
EY5.71%
EPS(NY)12.75
Fwd EY9.62%
FCF(TTM)-1.05
FCFYN/A
OCF(TTM)10.95
OCFY8.27%
SpS114.85
BVpS58.87
TBVpS54.22
PEG (NY)45.74
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 13.26% | ||
| ROCE | 10.74% | ||
| ROIC | 8.31% | ||
| ROICexc | 9.12% | ||
| ROICexgc | 9.66% | ||
| OM | 8.52% | ||
| PM (TTM) | 6.8% | ||
| GM | 13.41% | ||
| FCFM | N/A |
ROA(3y)18%
ROA(5y)17.12%
ROE(3y)30.79%
ROE(5y)31.2%
ROIC(3y)21.22%
ROIC(5y)20.87%
ROICexc(3y)25.25%
ROICexc(5y)24.52%
ROICexgc(3y)27.22%
ROICexgc(5y)26.63%
ROCE(3y)27.41%
ROCE(5y)26.96%
ROICexcg growth 3Y-30.82%
ROICexcg growth 5Y-3.41%
ROICexc growth 3Y-30.22%
ROICexc growth 5Y-1.67%
OM growth 3Y-22.02%
OM growth 5Y3.27%
PM growth 3Y-20.53%
PM growth 5Y6.45%
GM growth 3Y-18.14%
GM growth 5Y1.78%
F-Score4
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 361.71% | ||
| Cap/Sales | 10.45% | ||
| Interest Coverage | 12.21 | ||
| Cash Conversion | 83.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.71 |
F-Score4
WACC9.68%
ROIC/WACC0.86
Cap/Depr(3y)335.1%
Cap/Depr(5y)332.49%
Cap/Sales(3y)7.85%
Cap/Sales(5y)8.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.01%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-60.76%
EPS Next Y0.38%
EPS Next 2Y14.06%
EPS Next 3Y14.32%
EPS Next 5Y9.83%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-6.92%
Revenue Next Year5.81%
Revenue Next 2Y5.85%
Revenue Next 3Y5.29%
Revenue Next 5YN/A
EBIT growth 1Y-52.16%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year22.95%
EBIT Next 3Y18.15%
EBIT Next 5Y14.13%
FCF growth 1Y-104.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.47%
OCF growth 3Y-5.76%
OCF growth 5Y5.73%