STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
USA - NASDAQ:STLD - US8581191009 - Common Stock
145.99 USD
+3.24 (+2.27%)
STLD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. STLD scores excellent on profitability, but 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 Return On Assets of 6.69%. This is amongst the best in the industry. STLD outperforms 81.94% of its industry peers.
With an excellent Return On Equity value of 11.74%, STLD belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
STLD has a better Return On Invested Capital (7.28%) than 71.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STLD is significantly above the industry average of 12.30%.
The 3 year average ROIC (21.22%) for STLD is well above the current ROIC(7.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 11.74% | ||
| ROIC | 7.28% |
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
STLD's Profit Margin of 6.07% is fine compared to the rest of the industry. STLD outperforms 73.55% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
STLD has a Operating Margin of 7.53%. This is in the better half of the industry: STLD outperforms 63.87% of its industry peers.
In the last couple of years the Operating Margin of STLD has grown nicely.
Looking at the Gross Margin, with a value of 12.55%, STLD is in line with its industry, outperforming 47.74% of the companies in the same industry.
In the last couple of years the Gross Margin of STLD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.53% | ||
| PM (TTM) | 6.07% | ||
| GM | 12.55% |
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
STLD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for STLD has been reduced compared to 1 year ago.
Compared to 5 years ago, STLD has less shares outstanding
STLD has a worse debt/assets ratio than last year.
2.2 Solvency
STLD has an Altman-Z score of 4.93. This indicates that STLD is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.93, STLD is doing good in the industry, outperforming 61.29% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that STLD is not too dependend on debt financing.
STLD has a worse Debt to Equity ratio (0.43) than 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.93 |
ROIC/WACC0.84
WACC8.63%
2.3 Liquidity
A Current Ratio of 3.13 indicates that STLD has no problem at all paying its short term obligations.
The Current ratio of STLD (3.13) is better than 63.23% of its industry peers.
A Quick Ratio of 1.34 indicates that STLD should not have too much problems paying its short term obligations.
STLD has a Quick ratio (1.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
STLD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.99%.
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 -5.51% in the past year.
STLD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.88% yearly.
EPS 1Y (TTM)-44.99%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-26.1%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-1.46%
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 10.26% yearly.
Based on estimates for the next years, STLD will show a small growth in Revenue. The Revenue will grow by 5.16% on average per year.
EPS Next Y-8.08%
EPS Next 2Y15.4%
EPS Next 3Y14.13%
EPS Next 5Y10.26%
Revenue Next Year4.31%
Revenue Next 2Y6.15%
Revenue Next 3Y5.16%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 21.28, STLD is valued on the expensive side.
Based on the Price/Earnings ratio, STLD is valued cheaply inside the industry as 81.94% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.42. STLD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.19, the valuation of STLD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, STLD is valued cheaply inside the industry as 82.58% of the companies are valued more expensively.
STLD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.28 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STLD is valued a bit cheaper than the industry average as 65.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STLD's earnings are expected to grow with 14.13% in the coming years.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y15.4%
EPS Next 3Y14.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.40%, STLD has a reasonable but not impressive dividend return.
STLD's Dividend Yield is rather good when compared to the industry average which is at 2.42. STLD pays more dividend than 80.65% of the companies in the same industry.
With a Dividend Yield of 1.40, STLD pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of STLD is nicely growing with an annual growth rate of 14.82%!
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)14.82%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
27.49% of the earnings are spent on dividend by STLD. This is a low number and sustainable payout ratio.
STLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.49%
EPS Next 2Y15.4%
EPS Next 3Y14.13%
NASDAQ:STLD (10/20/2025, 3:07:07 PM)
145.99
+3.24 (+2.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change-0.11%
Ins Owners6.22%
Ins Owner Change-1.06%
Market Cap21.49B
Analysts80
Price Target152.59 (4.52%)
Short Float %1.82%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend1.82
Dividend Growth(5Y)14.82%
DP27.49%
Div Incr Years12
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.04%
Min EPS beat(2)-6.16%
Max EPS beat(2)2.08%
EPS beat(4)3
Avg EPS beat(4)0.55%
Min EPS beat(4)-6.16%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)-0.02%
EPS beat(12)7
Avg EPS beat(12)2.29%
EPS beat(16)10
Avg EPS beat(16)2.62%
Revenue beat(2)1
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)2.08%
Revenue beat(4)2
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)2.08%
Revenue beat(8)5
Avg Revenue beat(8)-0.72%
Revenue beat(12)7
Avg Revenue beat(12)-1.55%
Revenue beat(16)9
Avg Revenue beat(16)-0.84%
PT rev (1m)0.67%
PT rev (3m)0.41%
EPS NQ rev (1m)1.74%
EPS NQ rev (3m)-12.42%
EPS NY rev (1m)-1.58%
EPS NY rev (3m)-10.04%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.28 | ||
| Fwd PE | 11.19 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 13.77 | ||
| P/B | 2.42 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)6.86
EY4.7%
EPS(NY)13.05
Fwd EY8.94%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)10.6
OCFY7.26%
SpS116.5
BVpS60.22
TBVpS55.52
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 11.74% | ||
| ROCE | 9.4% | ||
| ROIC | 7.28% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 7.97% | ||
| OM | 7.53% | ||
| PM (TTM) | 6.07% | ||
| GM | 12.55% | ||
| 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-Score5
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 325.08% | ||
| Cap/Sales | 9.73% | ||
| Interest Coverage | 11.34 | ||
| Cash Conversion | 86.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 4.93 |
F-Score5
WACC8.63%
ROIC/WACC0.84
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)-44.99%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%-26.1%
EPS Next Y-8.08%
EPS Next 2Y15.4%
EPS Next 3Y14.13%
EPS Next 5Y10.26%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-1.46%
Revenue Next Year4.31%
Revenue Next 2Y6.15%
Revenue Next 3Y5.16%
Revenue Next 5YN/A
EBIT growth 1Y-49.62%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year16.38%
EBIT Next 3Y17.89%
EBIT Next 5Y13.47%
FCF growth 1Y-103.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.67%
OCF growth 3Y-5.76%
OCF growth 5Y5.73%