STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
NASDAQ:STLD - Nasdaq - US8581191009 - Common Stock - Currency: USD
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. While STLD has a great profitability rating, 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.
In the past year STLD had a positive cash flow from operations.
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
With an excellent Return On Assets value of 7.35%, STLD belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
With an excellent Return On Equity value of 13.26%, STLD belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
STLD's Return On Invested Capital of 8.31% is fine compared to the rest of the industry. STLD outperforms 76.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLD is significantly above the industry average of 11.67%.
The 3 year average ROIC (21.22%) for STLD is well above the current ROIC(8.31%). The reason for the recent decline needs to be investigated.
| 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 74.68% of the companies in the same industry.
STLD's Profit Margin has improved in the last couple of years.
STLD's Operating Margin of 8.52% is fine compared to the rest of the industry. STLD outperforms 64.29% 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 13.41%, STLD is in line with its industry, outperforming 46.10% of the companies in the same industry.
STLD's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, STLD has a worse debt to assets ratio.
2.2 Solvency
STLD has an Altman-Z score of 4.67. This indicates that STLD is financially healthy and has little risk of bankruptcy at the moment.
STLD has a better Altman-Z score (4.67) than 73.38% 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.
The Debt to Equity ratio of STLD (0.43) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.67 |
ROIC/WACC0.88
WACC9.48%
2.3 Liquidity
STLD has a Current Ratio of 2.74. 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 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.
STLD has a Quick ratio (1.38) which is in line with its industry peers.
| 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%.
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 -7.42% 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)-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
Based on estimates for the next years, STLD will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.93% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y2.18%
EPS Next 2Y14.49%
EPS Next 3Y14.36%
EPS Next 5Y9.93%
Revenue Next Year5.57%
Revenue Next 2Y5.81%
Revenue Next 3Y5%
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
With a Price/Earnings ratio of 17.16, STLD is valued on the expensive side.
Based on the Price/Earnings ratio, STLD is valued a bit cheaper than 79.87% of the companies in the same industry.
STLD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.11, the valuation of STLD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STLD indicates a somewhat cheap valuation: STLD is cheaper than 77.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. STLD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 10.11 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.58 |
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.
The excellent profitability rating of STLD may justify a higher PE ratio.
STLD's earnings are expected to grow with 14.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.87
PEG (5Y)0.66
EPS Next 2Y14.49%
EPS Next 3Y14.36%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.46%. 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 2.90.
STLD's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of STLD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.28%
EPS Next 2Y14.49%
EPS Next 3Y14.36%
NASDAQ:STLD (7/15/2025, 12:57:28 PM)
129.92
-3.3 (-2.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.98%
Inst Owner Change0%
Ins Owners6.22%
Ins Owner Change1.04%
Market Cap19.29B
Analysts78.1
Price Target151.37 (16.51%)
Short Float %2.61%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)0.56%
PT rev (3m)1.23%
EPS NQ rev (1m)-8.49%
EPS NQ rev (3m)-6.77%
EPS NY rev (1m)1.79%
EPS NY rev (3m)4.16%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 10.11 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 11.75 | ||
| P/B | 2.19 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 11.58 |
EPS(TTM)7.57
EY5.83%
EPS(NY)12.85
Fwd EY9.89%
FCF(TTM)-1.06
FCFYN/A
OCF(TTM)11.06
OCFY8.51%
SpS115.97
BVpS59.45
TBVpS54.75
PEG (NY)7.87
PEG (5Y)0.66
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 | 4.67 |
F-Score4
WACC9.48%
ROIC/WACC0.88
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 Y2.18%
EPS Next 2Y14.49%
EPS Next 3Y14.36%
EPS Next 5Y9.93%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-6.92%
Revenue Next Year5.57%
Revenue Next 2Y5.81%
Revenue Next 3Y5%
Revenue Next 5YN/A
EBIT growth 1Y-52.16%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year25.38%
EBIT Next 3Y17.98%
EBIT Next 5Y13.65%
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%