STEEL DYNAMICS INC (STLD)
US8581191009 - Common Stock
STLD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making STLD a very profitable company, without any liquidiy or solvency issues. STLD has a bad growth rate and is valued cheaply. These ratings could make STLD a good candidate for value investing.
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.
STLD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.44%, STLD belongs to the best of the industry, outperforming 96.13% of the companies in the same industry.
STLD has a better Return On Equity (27.64%) than 95.48% of its industry peers.
STLD has a better Return On Invested Capital (19.28%) than 96.77% 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 9.17%.
The last Return On Invested Capital (19.28%) for STLD is well below the 3 year average (27.90%), which needs to be investigated, but indicates that STLD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.44% | ||
| ROE | 27.64% | ||
| ROIC | 19.28% |
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 13.04%. This is amongst the best in the industry. STLD outperforms 83.87% of its industry peers.
In the last couple of years the Profit Margin of STLD has grown nicely.
STLD's Operating Margin of 16.77% is fine compared to the rest of the industry. STLD outperforms 74.19% of its industry peers.
STLD's Operating Margin has improved in the last couple of years.
STLD's Gross Margin of 21.53% is fine compared to the rest of the industry. STLD outperforms 60.65% of its industry peers.
STLD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.77% | ||
| PM (TTM) | 13.04% | ||
| GM | 21.53% |
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.
STLD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STLD has less shares outstanding
Compared to 1 year ago, STLD has an improved debt to assets ratio.
2.2 Solvency
STLD has an Altman-Z score of 5.68. 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 5.68, STLD is in the better half of the industry, outperforming 76.13% of the companies in the same industry.
The Debt to FCF ratio of STLD is 1.65, which is an excellent value as it means it would take STLD, only 1.65 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.65, STLD belongs to the best of the industry, outperforming 82.58% of the companies in the same industry.
STLD has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of STLD (0.29) is worse than 61.29% of its industry peers.
Even though the debt/equity ratio score it not favorable for STLD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 5.68 |
ROIC/WACC2.27
WACC8.48%
2.3 Liquidity
STLD has a Current Ratio of 2.91. This indicates that STLD is financially healthy and has no problem in meeting its short term obligations.
STLD has a Current ratio (2.91) which is comparable to the rest of the industry.
A Quick Ratio of 1.67 indicates that STLD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.67, STLD perfoms like the industry average, outperforming 54.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for STLD have decreased strongly by -34.01% in the last year.
Measured over the past years, STLD shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.10% on average per year.
STLD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.57%.
Measured over the past years, STLD shows a quite strong growth in Revenue. The Revenue has been growing by 9.72% on average per year.
EPS 1Y (TTM)-34.01%
EPS 3Y73.97%
EPS 5Y22.1%
EPS growth Q2Q-40.27%
Revenue 1Y (TTM)-15.57%
Revenue growth 3Y25.1%
Revenue growth 5Y9.72%
Revenue growth Q2Q-12.28%
3.2 Future
The Earnings Per Share is expected to decrease by -5.87% on average over the next years.
STLD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.16% yearly.
EPS Next Y-23.71%
EPS Next 2Y-20.09%
EPS Next 3Y-5.87%
EPS Next 5YN/A
Revenue Next Year-3.02%
Revenue Next 2Y-2.43%
Revenue Next 3Y1.16%
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.
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 9.00, which indicates a very decent valuation of STLD.
Based on the Price/Earnings ratio, STLD is valued cheaply inside the industry as 87.74% of the companies are valued more expensively.
STLD is valuated cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
STLD is valuated reasonably with a Price/Forward Earnings ratio of 11.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STLD indicates a rather cheap valuation: STLD is cheaper than 82.58% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. STLD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 11.79 |
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 80.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STLD is valued cheaply inside the industry as 86.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.37 | ||
| EV/EBITDA | 5.92 |
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 -5.87% in the coming years.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-20.09%
EPS Next 3Y-5.87%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.42%.
STLD's Dividend Yield is a higher than the industry average which is at 2.88.
Compared to an average S&P500 Dividend Yield of 2.43, STLD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of STLD grows each year by 17.38%, 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)17.38%
Div Incr Years11
Div Non Decr Years13
5.3 Sustainability
11.07% of the earnings are spent on dividend by STLD. This is a low number and sustainable payout ratio.
DP11.07%
EPS Next 2Y-20.09%
EPS Next 3Y-5.87%
STEEL DYNAMICS INC
NASDAQ:STLD (4/26/2024, 7:17:55 PM)
After market: 134.04 0 (0%)134.04
+1.01 (+0.76%)
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 Cap21.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 | 9 | ||
| Fwd PE | 11.79 | ||
| 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)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.44% | ||
| ROE | 27.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.77% | ||
| PM (TTM) | 13.04% | ||
| GM | 21.53% | ||
| 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 Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.67 | ||
| 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)
Growth
EPS 1Y (TTM)-34.01%
EPS 3Y73.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.57%
Revenue growth 3Y25.1%
Revenue growth 5Y
Revenue growth 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