STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
NASDAQ:STLD - Nasdaq - US8581191009 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to STLD. STLD was compared to 154 industry peers in the Metals & Mining industry. STLD has an excellent profitability rating, 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.
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
STLD has a better Return On Assets (7.35%) than 81.82% of its industry peers.
With an excellent Return On Equity value of 13.26%, STLD belongs to the best of the industry, outperforming 83.77% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.31%, STLD is doing good in the industry, outperforming 76.62% 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 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
The Profit Margin of STLD (6.80%) is better than 74.68% of its industry peers.
STLD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.52%, STLD is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
STLD's Operating Margin has improved in the last couple of years.
STLD has a Gross Margin (13.41%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
STLD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.60 indicates that STLD is not in any danger for bankruptcy at the moment.
The Altman-Z score of STLD (4.60) is better than 74.03% 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 73.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.6 |
ROIC/WACC0.98
WACC8.52%
2.3 Liquidity
A Current Ratio of 2.74 indicates that STLD has no problem at all paying its short term obligations.
STLD has a Current ratio of 2.74. This is in the better half of the industry: STLD outperforms 61.69% of its industry peers.
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's Quick ratio of 1.38 is in line compared to the rest of the industry. STLD outperforms 46.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for STLD have decreased strongly by -48.01% 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
STLD shows a decrease in Revenue. In the last year, the revenue decreased by -7.42%.
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
STLD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.93% yearly.
Based on estimates for the next years, STLD will show a small growth in Revenue. The Revenue will grow by 5.14% on average per year.
EPS Next Y2.21%
EPS Next 2Y15.08%
EPS Next 3Y14.49%
EPS Next 5Y9.93%
Revenue Next Year5.66%
Revenue Next 2Y5.73%
Revenue Next 3Y5.14%
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.
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 16.88, STLD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of STLD indicates a rather cheap valuation: STLD is cheaper than 81.17% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STLD to the average of the S&P500 Index (27.15), we can say STLD is valued slightly cheaper.
The Price/Forward Earnings ratio is 9.84, which indicates a very decent valuation of STLD.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, STLD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
STLD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STLD is cheaper than 65.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
STLD has an outstanding profitability rating, which may justify a higher PE ratio.
STLD's earnings are expected to grow with 14.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.63
PEG (5Y)0.65
EPS Next 2Y15.08%
EPS Next 3Y14.49%
5. Dividend
5.1 Amount
STLD has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.98, STLD pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of STLD is nicely growing with an annual growth rate of 14.82%!
STLD has paid a dividend for at least 10 years, which is 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)14.82%
Div Incr Years12
Div Non Decr Years14
5.3 Sustainability
24.28% 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.
DP24.28%
EPS Next 2Y15.08%
EPS Next 3Y14.49%
NASDAQ:STLD (7/1/2025, 10:14:00 AM)
127.75
-0.26 (-0.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.98%
Inst Owner Change-1.25%
Ins Owners6.22%
Ins Owner Change1.05%
Market Cap18.96B
Analysts78.1
Price Target151.37 (18.49%)
Short Float %2.4%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)1.1%
PT rev (3m)1.81%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)7.18%
EPS NY rev (1m)1.82%
EPS NY rev (3m)4.19%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)4.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 9.84 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | 11.55 | ||
| P/B | 2.15 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 11.18 |
EPS(TTM)7.57
EY5.93%
EPS(NY)12.98
Fwd EY10.16%
FCF(TTM)-1.06
FCFYN/A
OCF(TTM)11.06
OCFY8.66%
SpS115.97
BVpS59.45
TBVpS54.75
PEG (NY)7.63
PEG (5Y)0.65
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 | 4.6 |
F-Score4
WACC8.52%
ROIC/WACC0.98
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 Y2.21%
EPS Next 2Y15.08%
EPS Next 3Y14.49%
EPS Next 5Y9.93%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y-1.6%
Revenue growth 5Y10.88%
Sales Q2Q%-6.92%
Revenue Next Year5.66%
Revenue Next 2Y5.73%
Revenue Next 3Y5.14%
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%