STEEL DYNAMICS INC (STLD)
US8581191009 - Common Stock
Overall STLD gets a fundamental rating of 7 out of 10. We evaluated STLD against 157 industry peers in the Metals & Mining industry. STLD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STLD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year STLD was profitable.
STLD had a positive operating cash flow in the past year.
In the past 5 years STLD has always been profitable.
In the past 5 years STLD always reported a positive cash flow from operatings.
1.2 Ratios
STLD has a better Return On Assets (13.37%) than 94.27% of its industry peers.
The Return On Equity of STLD (22.05%) is better than 94.27% of its industry peers.
STLD has a Return On Invested Capital of 15.89%. This is amongst the best in the industry. STLD outperforms 94.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLD is significantly above the industry average of 8.91%.
The 3 year average ROIC (27.90%) for STLD is well above the current ROIC(15.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.37% | ||
| ROE | 22.05% | ||
| ROIC | 15.89% |
ROA(3y)23.12%
ROA(5y)16.68%
ROE(3y)42.04%
ROE(5y)31.06%
ROIC(3y)27.9%
ROIC(5y)20.5%
1.3 Margins
STLD has a Profit Margin of 11.10%. This is amongst the best in the industry. STLD outperforms 82.17% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.12%, STLD is doing good in the industry, outperforming 71.97% of the companies in the same industry.
STLD's Operating Margin has improved in the last couple of years.
STLD's Gross Margin of 18.95% is in line compared to the rest of the industry. STLD outperforms 56.05% of its industry peers.
In the last couple of years the Gross Margin of STLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.12% | ||
| PM (TTM) | 11.1% | ||
| GM | 18.95% |
OM growth 3Y22.95%
OM growth 5Y2.85%
PM growth 3Y31.47%
PM growth 5Y4.15%
GM growth 3Y12.93%
GM growth 5Y1.84%
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 better debt/assets ratio than last year.
2.2 Solvency
STLD has an Altman-Z score of 5.42. This indicates that STLD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of STLD (5.42) is better than 75.16% of its industry peers.
The Debt to FCF ratio of STLD is 3.57, which is a good value as it means it would take STLD, 3.57 years of fcf income to pay off all of its debts.
STLD's Debt to FCF ratio of 3.57 is fine compared to the rest of the industry. STLD outperforms 72.61% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that STLD is not too dependend on debt financing.
STLD has a Debt to Equity ratio (0.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 5.42 |
ROIC/WACC1.96
WACC8.09%
2.3 Liquidity
A Current Ratio of 2.35 indicates that STLD has no problem at all paying its short term obligations.
STLD has a Current ratio of 2.35. This is comparable to the rest of the industry: STLD outperforms 49.68% of its industry peers.
A Quick Ratio of 1.19 indicates that STLD should not have too much problems paying its short term obligations.
STLD has a Quick ratio (1.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for STLD have decreased strongly by -33.14% in the last year.
STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.10% yearly.
Looking at the last year, STLD shows a very negative growth in Revenue. The Revenue has decreased by -11.27% in the last year.
STLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.72% yearly.
EPS 1Y (TTM)-33.14%
EPS 3Y73.97%
EPS 5Y22.1%
EPS Q2Q%-43.45%
Revenue 1Y (TTM)-11.27%
Revenue growth 3Y25.1%
Revenue growth 5Y9.72%
Sales Q2Q%-8.84%
3.2 Future
Based on estimates for the next years, STLD will show a decrease in Earnings Per Share. The EPS will decrease by -6.04% on average per year.
The Revenue is expected to grow by 0.94% on average over the next years.
EPS Next Y-19.46%
EPS Next 2Y-16.58%
EPS Next 3Y-6.04%
EPS Next 5YN/A
Revenue Next Year-3.88%
Revenue Next 2Y-2.05%
Revenue Next 3Y0.94%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 10.47, the valuation of STLD can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of STLD indicates a rather cheap valuation: STLD is cheaper than 88.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, STLD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.59, the valuation of STLD can be described as correct.
72.61% of the companies in the same industry are more expensive than STLD, based on the Price/Forward Earnings ratio.
STLD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
STLD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STLD is cheaper than 73.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STLD is valued a bit cheaper than 73.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.15 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as STLD's earnings are expected to decrease with -6.04% in the coming years.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-16.58%
EPS Next 3Y-6.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, STLD has a reasonable but not impressive dividend return.
STLD's Dividend Yield is a higher than the industry average which is at 2.66.
STLD's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of STLD is nicely growing with an annual growth rate of 17.38%!
STLD has been paying a dividend for at least 10 years, so it has 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)17.38%
Div Incr Years11
Div Non Decr Years13
5.3 Sustainability
13.95% of the earnings are spent on dividend by STLD. This is a low number and sustainable payout ratio.
DP13.95%
EPS Next 2Y-16.58%
EPS Next 3Y-6.04%
STEEL DYNAMICS INC
NASDAQ:STLD (7/26/2024, 7:00:45 PM)
After market: 130.54 0 (0%)130.54
+2.94 (+2.3%)
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 Cap20.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 10.47 | ||
| Fwd PE | 12.59 | ||
| 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)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.37% | ||
| ROE | 22.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.12% | ||
| PM (TTM) | 11.1% | ||
| GM | 18.95% | ||
| 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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.19 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-33.14%
EPS 3Y73.97%
EPS 5Y
EPS Q2Q%
EPS Next Y-19.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.27%
Revenue growth 3Y25.1%
Revenue growth 5Y
Sales 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