STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
NASDAQ:STLD - US8581191009 - Common Stock
130.92 USD
-0.65 (-0.49%)
130.92 USD
0 (0%)
Taking everything into account, STLD scores 6 out of 10 in our fundamental rating. STLD was compared to 155 industry peers in the Metals & Mining industry. STLD scores excellent on profitability, but there are some minor concerns on its financial health. STLD is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years STLD had a positive operating cash flow.
1.2 Ratios
STLD has a better Return On Assets (6.69%) than 80.65% of its industry peers.
With an excellent Return On Equity value of 11.74%, STLD belongs to the best of the industry, outperforming 82.58% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.28%, STLD is doing good in the industry, outperforming 70.32% of the companies in the same industry.
STLD had an Average Return On Invested Capital over the past 3 years of 21.22%. This is significantly above the industry average of 12.86%.
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
Looking at the Profit Margin, with a value of 6.07%, STLD is in the better half of the industry, outperforming 72.26% of the companies in the same industry.
In the last couple of years the Profit Margin of STLD has grown nicely.
The Operating Margin of STLD (7.53%) is better than 62.58% of its industry peers.
STLD's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 12.55%, STLD perfoms like the industry average, outperforming 47.74% of the companies in the same industry.
STLD's Gross Margin has improved in the last couple of years.
| 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
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.
The debt/assets ratio for STLD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.78 indicates that STLD is not in any danger for bankruptcy at the moment.
STLD has a better Altman-Z score (4.78) than 70.97% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that STLD is not too dependend on debt financing.
STLD's Debt to Equity ratio of 0.43 is on the low side compared to the rest of the industry. STLD is outperformed by 72.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.78 |
ROIC/WACC0.75
WACC9.67%
2.3 Liquidity
A Current Ratio of 3.13 indicates that STLD has no problem at all paying its short term obligations.
STLD has a Current ratio of 3.13. This is in the better half of the industry: STLD outperforms 64.52% 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.
STLD's Quick ratio of 1.34 is in line compared to the rest of the industry. STLD outperforms 47.10% of its industry peers.
| 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.
Based on estimates for the next years, STLD will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y-6.61%
EPS Next 2Y15.05%
EPS Next 3Y14.29%
EPS Next 5Y10.26%
Revenue Next Year4.62%
Revenue Next 2Y5.95%
Revenue Next 3Y5%
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
A Price/Earnings ratio of 19.08 indicates a rather expensive valuation of STLD.
STLD's Price/Earnings ratio is rather cheap when compared to the industry. STLD is cheaper than 80.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. STLD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.09 indicates a reasonable valuation of STLD.
Based on the Price/Forward Earnings ratio, STLD is valued cheaply inside the industry as 81.29% of the companies are valued more expensively.
STLD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
63.87% 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 | 12.53 |
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 14.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y15.05%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, STLD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.59, STLD pays a bit more dividend than its industry peers.
STLD's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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
27.49% of the earnings are spent on dividend by STLD. This is a low number and sustainable payout ratio.
STLD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.49%
EPS Next 2Y15.05%
EPS Next 3Y14.29%
130.92
-0.65 (-0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.3%
Inst Owner Change-4.75%
Ins Owners6.21%
Ins Owner Change0.8%
Market Cap19.27B
Analysts80
Price Target151.57 (15.77%)
Short Float %2.26%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)-0.27%
PT rev (3m)1.23%
EPS NQ rev (1m)-8.05%
EPS NQ rev (3m)9.26%
EPS NY rev (1m)-8.6%
EPS NY rev (3m)-6.96%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 10.09 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 12.35 | ||
| P/B | 2.17 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)6.86
EY5.24%
EPS(NY)12.97
Fwd EY9.91%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)10.6
OCFY8.1%
SpS116.5
BVpS60.22
TBVpS55.52
PEG (NY)N/A
PEG (5Y)0.73
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 | 4.78 |
F-Score5
WACC9.67%
ROIC/WACC0.75
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-6.61%
EPS Next 2Y15.05%
EPS Next 3Y14.29%
EPS Next 5Y10.26%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-1.46%
Revenue Next Year4.62%
Revenue Next 2Y5.95%
Revenue Next 3Y5%
Revenue Next 5YN/A
EBIT growth 1Y-49.62%
EBIT growth 3Y-23.27%
EBIT growth 5Y14.51%
EBIT Next Year16.77%
EBIT Next 3Y19.05%
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%