STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
USA - NASDAQ:STLD - US8581191009 - Common Stock
155.41 USD
+0.82 (+0.53%)
155.41 USD
0 (0%)
Taking everything into account, STLD scores 6 out of 10 in our fundamental rating. STLD was compared to 154 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year STLD was profitable.
In the past year STLD had a positive cash flow from operations.
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 Return On Assets of 7.06%. This is in the better half of the industry: STLD outperforms 79.22% of its industry peers.
With an excellent Return On Equity value of 12.53%, STLD belongs to the best of the industry, outperforming 81.17% of the companies in the same industry.
STLD has a better Return On Invested Capital (7.75%) than 72.08% of its industry peers.
STLD had an Average Return On Invested Capital over the past 3 years of 21.22%. This is significantly above the industry average of 12.75%.
The last Return On Invested Capital (7.75%) 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 | 7.06% | ||
| ROE | 12.53% | ||
| ROIC | 7.75% |
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 better Profit Margin (6.39%) than 71.43% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
STLD has a better Operating Margin (7.96%) than 64.29% of its industry peers.
In the last couple of years the Operating Margin of STLD has grown nicely.
STLD's Gross Margin of 13.07% is in line compared to the rest of the industry. STLD outperforms 49.35% of its industry peers.
STLD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.96% | ||
| PM (TTM) | 6.39% | ||
| GM | 13.07% |
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.
STLD has less shares outstanding than it did 1 year ago.
STLD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, STLD has a worse debt to assets ratio.
2.2 Solvency
STLD has an Altman-Z score of 5.02. This indicates that STLD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.02, STLD is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
STLD has a debt to FCF ratio of 12.16. This is a negative value and a sign of low solvency as STLD would need 12.16 years to pay back of all of its debts.
STLD's Debt to FCF ratio of 12.16 is fine compared to the rest of the industry. STLD outperforms 62.34% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that STLD is not too dependend on debt financing.
STLD has a Debt to Equity ratio of 0.42. This is in the lower half of the industry: STLD underperforms 74.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 12.16 | ||
| Altman-Z | 5.02 |
ROIC/WACC0.89
WACC8.71%
2.3 Liquidity
STLD has a Current Ratio of 3.11. This indicates that STLD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.11, STLD is in the better half of the industry, outperforming 65.58% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that STLD should not have too much problems paying its short term obligations.
STLD has a Quick ratio (1.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for STLD have decreased strongly by -31.67% in the last year.
STLD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.97% yearly.
Looking at the last year, STLD shows a decrease in Revenue. The Revenue has decreased by -1.49% in the last 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)-31.67%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%33.66%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%11.21%
3.2 Future
The Earnings Per Share is expected to grow by 13.76% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y-11.7%
EPS Next 2Y16.49%
EPS Next 3Y14.97%
EPS Next 5Y13.76%
Revenue Next Year4.25%
Revenue Next 2Y6.48%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.58, which indicates a rather expensive current valuation of STLD.
Based on the Price/Earnings ratio, STLD is valued a bit cheaper than 77.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. STLD is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.69, the valuation of STLD can be described as reasonable.
75.97% of the companies in the same industry are more expensive than STLD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, STLD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.58 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STLD indicates a somewhat cheap valuation: STLD is cheaper than 64.94% of the companies listed in the same industry.
62.34% of the companies in the same industry are more expensive than STLD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.56 | ||
| EV/EBITDA | 13.32 |
4.3 Compensation for Growth
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
STLD's earnings are expected to grow with 14.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y16.49%
EPS Next 3Y14.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, STLD has a reasonable but not impressive dividend return.
STLD's Dividend Yield is a higher than the industry average which is at 2.63.
With a Dividend Yield of 1.31, STLD pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of STLD is nicely growing with an annual growth rate of 14.81%!
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)14.81%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
STLD pays out 25.60% 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.
DP25.6%
EPS Next 2Y16.49%
EPS Next 3Y14.97%
155.41
+0.82 (+0.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change0.24%
Ins Owners6.22%
Ins Owner Change-1.13%
Market Cap22.88B
Revenue(TTM)17.63B
Net Income(TTM)1.13B
Analysts80
Price Target163.18 (5%)
Short Float %2.18%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.82
Dividend Growth(5Y)14.81%
DP25.6%
Div Incr Years12
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.17%
Min EPS beat(2)-6.16%
Max EPS beat(2)1.82%
EPS beat(4)3
Avg EPS beat(4)0.56%
Min EPS beat(4)-6.16%
Max EPS beat(4)4.52%
EPS beat(8)5
Avg EPS beat(8)0.33%
EPS beat(12)7
Avg EPS beat(12)2.02%
EPS beat(16)10
Avg EPS beat(16)2.61%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)-1.36%
Revenue beat(4)1
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)2.08%
Revenue beat(8)4
Avg Revenue beat(8)-0.92%
Revenue beat(12)6
Avg Revenue beat(12)-1.81%
Revenue beat(16)9
Avg Revenue beat(16)-0.87%
PT rev (1m)6.94%
PT rev (3m)7.27%
EPS NQ rev (1m)-6.82%
EPS NQ rev (3m)-10.49%
EPS NY rev (1m)-3.93%
EPS NY rev (3m)-13.58%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.58 | ||
| Fwd PE | 11.69 | ||
| P/S | 1.3 | ||
| P/FCF | 73.56 | ||
| P/OCF | 15.01 | ||
| P/B | 2.54 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 13.32 |
EPS(TTM)7.55
EY4.86%
EPS(NY)13.3
Fwd EY8.56%
FCF(TTM)2.11
FCFY1.36%
OCF(TTM)10.35
OCFY6.66%
SpS119.8
BVpS61.11
TBVpS56.46
PEG (NY)N/A
PEG (5Y)0.79
Graham Number101.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 12.53% | ||
| ROCE | 10.02% | ||
| ROIC | 7.75% | ||
| ROICexc | 8.21% | ||
| ROICexgc | 8.65% | ||
| OM | 7.96% | ||
| PM (TTM) | 6.39% | ||
| GM | 13.07% | ||
| FCFM | 1.76% |
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%
ROICexgc growth 3Y-30.83%
ROICexgc 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 | 0.42 | ||
| Debt/FCF | 12.16 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 228.53% | ||
| Cap/Sales | 6.88% | ||
| Interest Coverage | 10.76 | ||
| Cash Conversion | 78.79% | ||
| Profit Quality | 27.6% | ||
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 5.02 |
F-Score5
WACC8.71%
ROIC/WACC0.89
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)-31.67%
EPS 3Y-15.5%
EPS 5Y25.97%
EPS Q2Q%33.66%
EPS Next Y-11.7%
EPS Next 2Y16.49%
EPS Next 3Y14.97%
EPS Next 5Y13.76%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%11.21%
Revenue Next Year4.25%
Revenue Next 2Y6.48%
Revenue Next 3Y5.16%
Revenue Next 5YN/A
EBIT growth 1Y-36.91%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year16.38%
EBIT Next 3Y17.89%
EBIT Next 5Y16.58%
FCF growth 1Y-86.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.89%
OCF growth 3Y-5.76%
OCF growth 5Y5.73%
STEEL DYNAMICS INC / STLD FAQ
Can you provide the ChartMill fundamental rating for STEEL DYNAMICS INC?
ChartMill assigns a fundamental rating of 6 / 10 to STLD.
Can you provide the valuation status for STEEL DYNAMICS INC?
ChartMill assigns a valuation rating of 6 / 10 to STEEL DYNAMICS INC (STLD). This can be considered as Fairly Valued.
Can you provide the profitability details for STEEL DYNAMICS INC?
STEEL DYNAMICS INC (STLD) has a profitability rating of 8 / 10.
What are the PE and PB ratios of STEEL DYNAMICS INC (STLD) stock?
The Price/Earnings (PE) ratio for STEEL DYNAMICS INC (STLD) is 20.58 and the Price/Book (PB) ratio is 2.54.
What is the financial health of STEEL DYNAMICS INC (STLD) stock?
The financial health rating of STEEL DYNAMICS INC (STLD) is 6 / 10.