STEEL DYNAMICS INC (STLD)

US8581191009 - Common Stock

137.3  +0.4 (+0.29%)

After market: 137.3 0 (0%)

Fundamental Rating

7

Overall STLD gets a fundamental rating of 7 out of 10. We evaluated STLD against 155 industry peers in the Metals & Mining industry. STLD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. STLD has a bad growth rate and is valued cheaply. These ratings could make STLD a good candidate for value investing.



9

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.
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

STLD's Return On Assets of 16.44% is amongst the best of the industry. STLD outperforms 96.13% of its industry peers.
STLD's Return On Equity of 27.64% is amongst the best of the industry. STLD outperforms 95.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.28%, STLD belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
STLD had an Average Return On Invested Capital over the past 3 years of 27.90%. This is significantly above the industry average of 9.16%.
The 3 year average ROIC (27.90%) for STLD is well above the current ROIC(19.28%). The reason for the recent decline needs to be investigated.
Industry RankSector 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's Profit Margin of 13.04% is amongst the best of the industry. STLD outperforms 83.87% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
STLD has a Operating Margin of 16.77%. This is in the better half of the industry: STLD outperforms 74.19% of its industry peers.
STLD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.53%, STLD is in the better half of the industry, outperforming 60.65% of the companies in the same industry.
STLD's Gross Margin has improved in the last couple of years.
Industry RankSector 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%

8

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.
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
Compared to 1 year ago, STLD has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 5.74 indicates that STLD is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.74, STLD is doing good in 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.
Looking at the Debt to FCF ratio, with a value of 1.65, STLD belongs to the top 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 RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.65
Altman-Z 5.74
ROIC/WACC2.29
WACC8.43%

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.
The Current ratio of STLD (2.91) is comparable to the rest of the industry.
STLD has a Quick Ratio of 1.67. This is a normal value and indicates that STLD is financially healthy and should not expect problems in meeting 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 RankSector Rank
Current Ratio 2.91
Quick Ratio 1.67

3

3. Growth

3.1 Past

The earnings per share for STLD have decreased strongly by -34.01% in the last year.
The Earnings Per Share has been growing by 22.10% on average over the past years. This is a very strong growth
STLD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.57%.
The Revenue has been growing by 9.72% on average over the past years. This is quite good.
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

Based on estimates for the next years, STLD will show a decrease in Earnings Per Share. The EPS will decrease by -5.87% on average per year.
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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.21, the valuation of STLD can be described as very reasonable.
Based on the Price/Earnings ratio, STLD is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of STLD to the average of the S&P500 Index (24.75), we can say STLD is valued rather cheaply.
The Price/Forward Earnings ratio is 12.08, which indicates a correct valuation of STLD.
81.94% of the companies in the same industry are more expensive than STLD, based on the Price/Forward Earnings ratio.
STLD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.23, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.21
Fwd PE 12.08

4.2 Price Multiples

STLD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STLD is cheaper than 78.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STLD indicates a rather cheap valuation: STLD is cheaper than 85.81% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.65
EV/EBITDA 6.09

4.3 Compensation for Growth

The excellent profitability rating of STLD may justify a higher PE ratio.
STLD's earnings are expected to decrease with -5.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-20.09%
EPS Next 3Y-5.87%

6

5. Dividend

5.1 Amount

STLD has a Yearly Dividend Yield of 1.35%. 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 2.87.
With a Dividend Yield of 1.35, STLD pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 1.35%

5.2 History

On average, the dividend of STLD grows each year by 17.38%, which is quite nice.
STLD has been paying a dividend for at least 10 years, so it has 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

STLD pays out 11.07% of its income as dividend. This is a sustainable payout ratio.
DP11.07%
EPS Next 2Y-20.09%
EPS Next 3Y-5.87%

STEEL DYNAMICS INC

NASDAQ:STLD (4/22/2024, 4:20:01 PM)

After market: 137.3 0 (0%)

137.3

+0.4 (+0.29%)

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 Cap21.69B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 9.21
Fwd PE 12.08
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)0.42
Profitability
Industry RankSector 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 RankSector 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