STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
USA - NASDAQ:STLD - US8581191009 - Common Stock
142.73 USD
+1.1 (+0.78%)
142.73 USD
0 (0%)
Taking everything into account, STLD scores 6 out of 10 in our fundamental rating. STLD was compared to 156 industry peers in the Metals & Mining industry. STLD scores excellent on profitability, but there are some minor concerns on its financial health. STLD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
STLD had positive earnings in the past year.
STLD had a positive operating cash flow in the past year.
Each year in the past 5 years STLD has been profitable.
STLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STLD (6.69%) is better than 81.41% of its industry peers.
With an excellent Return On Equity value of 11.74%, STLD belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
STLD has a Return On Invested Capital of 7.28%. This is in the better half of the industry: STLD outperforms 71.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLD is significantly above the industry average of 12.16%.
The last Return On Invested Capital (7.28%) 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 | 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 has a Profit Margin of 6.07%. This is in the better half of the industry: STLD outperforms 73.08% of its industry peers.
In the last couple of years the Profit Margin of STLD has grown nicely.
STLD's Operating Margin of 7.53% is fine compared to the rest of the industry. STLD outperforms 63.46% of its industry peers.
In the last couple of years the Operating Margin of STLD has grown nicely.
STLD has a Gross Margin (12.55%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STLD is creating value.
The number of shares outstanding for STLD has been reduced compared to 1 year ago.
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
STLD has an Altman-Z score of 4.91. This indicates that STLD is financially healthy and has little risk of bankruptcy at the moment.
STLD has a Altman-Z score of 4.91. This is in the better half of the industry: STLD outperforms 60.90% 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.
With a Debt to Equity ratio value of 0.43, STLD is not doing good in the industry: 74.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.91 |
ROIC/WACC0.82
WACC8.89%
2.3 Liquidity
STLD has a Current Ratio of 3.13. This indicates that STLD is financially healthy and has no problem in meeting its short term obligations.
STLD's Current ratio of 3.13 is fine compared to the rest of the industry. STLD outperforms 62.82% of its industry peers.
STLD has a Quick Ratio of 1.34. This is a normal value and indicates that STLD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of STLD (1.34) 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
The earnings per share for STLD have decreased strongly by -44.99% in the last year.
The Earnings Per Share has been growing by 25.97% on average over the past years. This is a very strong growth
The Revenue has decreased by -5.51% in the past year.
The Revenue has been growing by 10.88% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 5.16% on average over the next years.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 20.81, STLD is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of STLD indicates a rather cheap valuation: STLD is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.76. STLD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.94, the valuation of STLD can be described as very reasonable.
STLD's Price/Forward Earnings ratio is rather cheap when compared to the industry. STLD is cheaper than 81.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.21, STLD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 10.94 |
4.2 Price Multiples
66.03% of the companies in the same industry are more expensive than STLD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
The excellent profitability rating of STLD 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)0.8
EPS Next 2Y15.4%
EPS Next 3Y14.13%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.39%.
STLD's Dividend Yield is a higher than the industry average which is at 2.45.
With a Dividend Yield of 1.39, STLD pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 27.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of STLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.49%
EPS Next 2Y15.4%
EPS Next 3Y14.13%
142.73
+1.1 (+0.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change0%
Ins Owners6.22%
Ins Owner Change-1.06%
Market Cap21.01B
Analysts80
Price Target152.59 (6.91%)
Short Float %1.82%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)0.8%
EPS NQ rev (1m)0.99%
EPS NQ rev (3m)-12.29%
EPS NY rev (1m)-1.58%
EPS NY rev (3m)-10.07%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 10.94 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | 13.46 | ||
| P/B | 2.37 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)6.86
EY4.81%
EPS(NY)13.05
Fwd EY9.14%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)10.6
OCFY7.43%
SpS116.5
BVpS60.22
TBVpS55.52
PEG (NY)N/A
PEG (5Y)0.8
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 | 4.91 |
F-Score5
WACC8.89%
ROIC/WACC0.82
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%