STEEL DYNAMICS INC (STLD) Stock Fundamental Analysis
USA - NASDAQ:STLD - US8581191009 - Common Stock
139.67 USD
+8.09 (+6.15%)
139.67 USD
0 (0%)
STLD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 156 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 correct valuation and a medium 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.
Each year in the past 5 years STLD has been profitable.
In the past 5 years STLD always reported a positive cash flow from operatings.
1.2 Ratios
STLD has a better Return On Assets (6.69%) than 81.41% of its industry peers.
STLD has a Return On Equity of 11.74%. This is amongst the best in the industry. STLD outperforms 83.33% of its industry peers.
STLD has a Return On Invested Capital of 7.28%. This is in the better half of the industry: STLD outperforms 71.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STLD is significantly above the industry average of 12.92%.
The 3 year average ROIC (21.22%) for STLD is well above the current ROIC(7.28%). The reason for the recent decline needs to be investigated.
| 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
STLD's Profit Margin of 6.07% is fine compared to the rest of the industry. STLD outperforms 73.08% of its industry peers.
In the last couple of years the Profit Margin of STLD has grown nicely.
STLD's Operating Margin of 7.53% is fine compared to the rest of the industry. STLD outperforms 63.46% of its industry peers.
STLD's Operating Margin has improved in the last couple of years.
STLD's Gross Margin of 12.55% is in line compared to the rest of the industry. STLD outperforms 47.44% of its industry peers.
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
STLD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The Altman-Z score of STLD (4.78) is better than 68.59% 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.
STLD has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: STLD underperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.78 |
ROIC/WACC0.8
WACC9.11%
2.3 Liquidity
STLD has a Current Ratio of 3.13. This indicates that STLD is financially healthy and has no problem in meeting its short term obligations.
STLD has a Current ratio of 3.13. This is in the better half of the industry: STLD outperforms 64.10% 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.
With a Quick ratio value of 1.34, STLD perfoms like the industry average, outperforming 47.44% of the companies in the same industry.
| 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
Looking at the last year, STLD shows a decrease in Revenue. The Revenue has decreased by -5.51% in the last year.
Measured over the past years, STLD shows a quite strong growth in Revenue. The Revenue has been growing by 10.88% on average per year.
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
Based on estimates for the next years, STLD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.26% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-6.61%
EPS Next 2Y15.05%
EPS Next 3Y14.29%
EPS Next 5Y10.26%
Revenue Next Year4.54%
Revenue Next 2Y5.9%
Revenue Next 3Y5%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 20.36, STLD is valued on the expensive side.
82.05% of the companies in the same industry are more expensive than STLD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.27, STLD is valued a bit cheaper.
With a Price/Forward Earnings ratio of 10.77, the valuation of STLD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, STLD is valued cheaper than 83.97% of the companies in the same industry.
STLD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
STLD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STLD is cheaper than 69.23% of the companies in the same industry.
| 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.
A more expensive valuation may be justified as STLD's earnings are expected to grow with 14.29% in the coming years.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y15.05%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, STLD has a reasonable but not impressive dividend return.
STLD's Dividend Yield is a higher than the industry average which is at 2.51.
Compared to the average S&P500 Dividend Yield of 2.38, STLD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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%
139.67
+8.09 (+6.15%)
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 Change-0.39%
Market Cap20.56B
Analysts80
Price Target151.57 (8.52%)
Short Float %1.65%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)-0.37%
PT rev (3m)0.69%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-10.2%
EPS NY rev (1m)-8.6%
EPS NY rev (3m)-6.96%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 10.77 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 13.17 | ||
| P/B | 2.32 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)6.86
EY4.91%
EPS(NY)12.97
Fwd EY9.29%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)10.6
OCFY7.59%
SpS116.5
BVpS60.22
TBVpS55.52
PEG (NY)N/A
PEG (5Y)0.78
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
WACC9.11%
ROIC/WACC0.8
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 Year4.54%
Revenue Next 2Y5.9%
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%