Steel Dynamics
Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. The last earnings update was 2 days ago. More info.
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STLD Share Price and Events
STLD Value
Is Steel Dynamics undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Steel Dynamics
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Steel Dynamics.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 13 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| Metals and Mining Unlevered Beta | Simply Wall St/ S&P Global | 0.94 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.945 (1 + (1- 21%) (24.4%)) |
1.127 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.13 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.127 * 7.05%) |
10.89% |
Discounted Cash Flow Calculation for NasdaqGS:STLD using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Steel Dynamics is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 1,177.75 | 1,082.33 | 940.00 | 872.00 | 924.63 |
| Source | Analyst x9 | Analyst x3 | Analyst x1 | Analyst x1 | Est @ 6.04% |
|
Present Value Discounted (@ 10.89%) |
1,062.07 | 880.15 | 689.32 | 576.65 | 551.39 |
| Present value of next 5 years cash flows | $3,759.58 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $924.63 × (1 + 2.95%) ÷ (10.89% – 2.95%) |
$11,985.09 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $11,985.09 ÷ (1 + 10.89%)5 |
$7,147.13 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $3,759.58 + $7,147.13 |
$10,906.70 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $10,906.70 / 234.79 |
$46.45 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $46.45 |
| Current discount | Discount to share price of
$41.03
= -1 x ($41.03 - $46.45) / $46.45 |
11.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Steel Dynamics's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Steel Dynamics's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Steel Dynamics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Steel Dynamics's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in USD | $5.48 |
| NasdaqGS:STLD Share Price ** | NasdaqGS (2018-10-19) in USD | $41.03 |
| United States of America Metals and Mining Industry PE Ratio | Median Figure of 44 Publicly-Listed Metals and Mining Companies | 12.24x |
| United States of America Market PE Ratio | Median Figure of 2,940 Publicly-Listed Companies | 19.17x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Steel Dynamics.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:STLD Share Price ÷ EPS (both in USD) = 41.03 ÷ 5.48 |
7.49x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Steel Dynamics is good value based on earnings compared to the US Metals and Mining industry average.
- Steel Dynamics is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Steel Dynamics's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 7.49x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts |
-18.5%per year |
| United States of America Metals and Mining Industry PEG Ratio | Median Figure of 26 Publicly-Listed Metals and Mining Companies | 1.07x |
| United States of America Market PEG Ratio | Median Figure of 2,060 Publicly-Listed Companies | 1.28x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 7.49x ÷ -18.5% |
-0.4x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Steel Dynamics earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Steel Dynamics's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in USD | $17.22 |
| NasdaqGS:STLD Share Price * | NasdaqGS (2018-10-19) in USD | $41.03 |
| United States of America Metals and Mining Industry PB Ratio | Median Figure of 96 Publicly-Listed Metals and Mining Companies | 1.6x |
| United States of America Market PB Ratio | Median Figure of 4,942 Publicly-Listed Companies | 1.93x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:STLD Share Price ÷ Book Value per Share (both in USD) = 41.03 ÷ 17.22 |
2.38x |
* Primary Listing of Steel Dynamics.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Steel Dynamics is overvalued based on assets compared to the US Metals and Mining industry average.
Value checks
We assess Steel Dynamics's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check) Steel Dynamics has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
STLD Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Steel Dynamics's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3%.
Growth vs Market Checks
- Steel Dynamics's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
- Steel Dynamics's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:STLD Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts | -18.5% |
| NasdaqGS:STLD Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts | -1.4% |
| United States of America Metals and Mining Industry Earnings Growth Rate | Market Cap Weighted Average | 12.3% |
| United States of America Metals and Mining Industry Revenue Growth Rate | Market Cap Weighted Average | 3.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 16.1% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.6% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 weeks ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 1,196 | |||
| 2021-12-31 | 1,258 | |||
| 2020-12-31 | 11,398 | 1,263 | 846 | 6 |
| 2019-12-31 | 11,793 | 1,535 | 1,142 | 13 |
| 2018-12-31 | 11,861 | 1,333 | 1,313 | 11 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-09-30 | 11,254 | 1,117 | 1,293 |
| 2018-06-30 | 10,474 | 922 | 1,048 |
| 2018-03-31 | 9,774 | 677 | 839 |
| 2017-12-31 | 9,539 | 740 | 813 |
| 2017-09-30 | 9,113 | 755 | 528 |
| 2017-06-30 | 8,771 | 725 | 532 |
| 2017-03-31 | 8,404 | 802 | 520 |
| 2016-12-31 | 7,777 | 853 | 382 |
| 2016-09-30 | 7,458 | 991 | 109 |
| 2016-06-30 | 7,307 | 959 | 12 |
| 2016-03-31 | 7,288 | 1,110 | -98 |
| 2015-12-31 | 7,594 | 1,054 | -130 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 weeks ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
All data from Steel Dynamics Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | ||||
| 2021-12-31 | ||||
| 2020-12-31 | 3.60 | 4.50 | 2.57 | 3.00 |
| 2019-12-31 | 4.70 | 5.98 | 3.30 | 9.00 |
| 2018-12-31 | 5.55 | 5.73 | 5.43 | 7.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-09-30 | 5.48 |
| 2018-06-30 | 4.42 |
| 2018-03-31 | 3.52 |
| 2017-12-31 | 3.38 |
| 2017-09-30 | 2.18 |
| 2017-06-30 | 2.19 |
| 2017-03-31 | 2.14 |
| 2016-12-31 | 1.57 |
| 2016-09-30 | 0.45 |
| 2016-06-30 | 0.05 |
| 2016-03-31 | -0.41 |
| 2015-12-31 | -0.54 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Steel Dynamics's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Steel Dynamics has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
STLD Past Performance
How has Steel Dynamics performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Steel Dynamics has delivered over 20% year on year earnings growth in the past 5 years.
- Steel Dynamics's 1-year earnings growth exceeds its 5-year average (144.9% vs 47.5%)
- Steel Dynamics's earnings growth has exceeded the US Metals and Mining industry average in the past year (144.9% vs 89.8%).
Earnings and Revenue History
All data from Steel Dynamics Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-09-30 | 11,254.43 | 1,293.11 | 542.18 | |
| 2018-06-30 | 10,474.26 | 1,047.99 | 512.49 | |
| 2018-03-31 | 9,774.46 | 839.48 | 488.87 | |
| 2017-12-31 | 9,538.80 | 812.74 | 485.94 | |
| 2017-09-30 | 9,112.91 | 528.02 | 481.81 | |
| 2017-06-30 | 8,770.84 | 532.16 | 481.35 | |
| 2017-03-31 | 8,404.02 | 520.20 | 478.64 | |
| 2016-12-31 | 7,777.11 | 382.12 | 445.29 | |
| 2016-09-30 | 7,457.56 | 108.86 | 422.60 | |
| 2016-06-30 | 7,307.17 | 12.08 | 397.03 | |
| 2016-03-31 | 7,288.28 | -98.34 | 367.70 | |
| 2015-12-31 | 7,594.41 | -130.31 | 351.82 | |
| 2015-09-30 | 8,520.46 | 77.90 | 366.71 | |
| 2015-06-30 | 8,908.55 | 108.45 | 367.61 | |
| 2015-03-31 | 8,973.31 | 149.21 | 363.85 | |
| 2014-12-31 | 8,755.95 | 157.02 | 359.40 | |
| 2014-09-30 | 8,103.01 | 256.71 | 334.95 | |
| 2014-06-30 | 7,675.73 | 223.02 | 317.87 | |
| 2014-03-31 | 7,407.31 | 179.68 | 304.07 | |
| 2013-12-31 | 7,372.92 | 189.31 | 300.54 | |
| 2013-09-30 | 7,213.78 | 195.23 | 294.15 | |
| 2013-06-30 | 6,995.43 | 150.58 | 285.07 | |
| 2013-03-31 | 7,103.89 | 166.09 | 284.38 | |
| 2012-12-31 | 7,290.23 | 163.55 | 284.93 | |
| 2012-09-30 | 7,443.58 | 133.18 | 276.85 | |
| 2012-06-30 | 7,793.64 | 163.65 | 290.22 | |
| 2012-03-31 | 7,963.57 | 217.89 | 298.86 | |
| 2011-12-31 | 7,997.50 | 278.12 | 306.74 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Steel Dynamics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Steel Dynamics used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.
- Steel Dynamics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Steel Dynamics's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Steel Dynamics has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
STLD Health
How is Steel Dynamics's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Steel Dynamics's finances.
The net worth of a company is the difference between its assets and liabilities.
- Steel Dynamics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Steel Dynamics's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Steel Dynamics Company Filings, last reported 2 weeks ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-09-30 | 3,986.08 | 2,366.76 | 999.32 |
| 2018-06-30 | 3,699.76 | 2,370.39 | 810.45 |
| 2018-03-31 | 3,423.38 | 2,363.35 | 1,025.82 |
| 2017-12-31 | 3,306.31 | 2,381.94 | 1,028.65 |
| 2017-09-30 | 3,061.02 | 2,534.14 | 1,101.96 |
| 2017-06-30 | 3,039.48 | 2,374.31 | 908.84 |
| 2017-03-31 | 2,994.71 | 2,356.71 | 966.83 |
| 2016-12-31 | 2,888.70 | 2,356.83 | 841.48 |
| 2016-09-30 | 2,951.70 | 2,586.99 | 1,051.49 |
| 2016-06-30 | 2,824.61 | 2,591.23 | 1,052.67 |
| 2016-03-31 | 2,707.51 | 2,598.30 | 976.95 |
| 2015-12-31 | 2,671.45 | 2,594.66 | 727.03 |
| 2015-09-30 | 2,955.79 | 2,647.40 | 473.79 |
| 2015-06-30 | 2,924.70 | 2,654.65 | 419.40 |
| 2015-03-31 | 2,923.09 | 2,654.17 | 160.98 |
| 2014-12-31 | 2,921.87 | 2,981.85 | 361.36 |
| 2014-09-30 | 3,037.99 | 3,061.85 | 159.59 |
| 2014-06-30 | 2,959.21 | 1,803.89 | 357.49 |
| 2014-03-31 | 2,634.33 | 2,098.75 | 342.92 |
| 2013-12-31 | 2,612.37 | 2,107.59 | 395.16 |
| 2013-09-30 | 2,557.79 | 2,108.96 | 370.06 |
| 2013-06-30 | 2,515.47 | 2,098.48 | 243.75 |
| 2013-03-31 | 2,506.00 | 2,300.80 | 477.86 |
| 2012-12-31 | 2,476.66 | 2,202.24 | 407.44 |
| 2012-09-30 | 2,432.83 | 2,204.04 | 287.12 |
| 2012-06-30 | 2,431.56 | 2,368.01 | 430.94 |
| 2012-03-31 | 2,406.49 | 2,371.65 | 422.79 |
| 2011-12-31 | 2,370.59 | 2,380.10 | 475.59 |
- Steel Dynamics's level of debt (59.4%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (82.4% vs 59.4% today).
- Debt is well covered by operating cash flow (47.2%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 14.1x coverage).
Financial health checks
We assess Steel Dynamics's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Steel Dynamics has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
STLD Dividends
What is Steel Dynamics's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Steel Dynamics
shares you are expected to receive
$37
in your first year as a dividend.
Dividend Amount
- Steel Dynamics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.37%).
- Steel Dynamics's dividend is below the markets top 25% of dividend payers in United States of America (3.48%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| United States of America Metals and Mining Industry Average Dividend Yield | Market Cap Weighted Average of 31 Stocks | 2.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1972 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-12-31 | ||
| 2021-12-31 | ||
| 2020-12-31 | 0.76 | 9.00 |
| 2019-12-31 | 0.75 | 14.00 |
| 2018-12-31 | 0.75 | 13.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-08-20 | 0.750 | 1.662 |
| 2018-06-12 | 0.750 | 1.620 |
| 2018-02-20 | 0.750 | 1.600 |
| 2017-11-21 | 0.620 | 1.436 |
| 2017-09-19 | 0.620 | 1.705 |
| 2017-06-16 | 0.620 | 1.772 |
| 2017-03-17 | 0.620 | 1.785 |
| 2016-12-16 | 0.560 | 1.558 |
| 2016-09-19 | 0.560 | 1.943 |
| 2016-06-13 | 0.560 | 2.201 |
| 2016-03-16 | 0.560 | 2.345 |
| 2015-12-17 | 0.550 | 3.058 |
| 2015-09-18 | 0.550 | 3.095 |
| 2015-06-22 | 0.550 | 2.771 |
| 2015-03-11 | 0.550 | 2.616 |
| 2014-12-17 | 0.460 | 2.485 |
| 2014-09-17 | 0.460 | 2.081 |
| 2014-06-16 | 0.460 | 2.223 |
| 2014-03-18 | 0.460 | 2.569 |
| 2013-12-17 | 0.440 | 2.488 |
| 2013-09-17 | 0.440 | 2.451 |
| 2013-06-17 | 0.440 | 2.832 |
| 2013-03-04 | 0.440 | 2.906 |
| 2013-02-27 | 0.400 | 2.658 |
| 2013-01-28 | 0.400 | 2.600 |
| 2012-09-11 | 0.400 | 3.071 |
| 2012-06-15 | 0.400 | 3.250 |
| 2012-03-16 | 0.400 | 3.246 |
| 2011-12-16 | 0.400 | 2.725 |
| 2011-09-12 | 0.400 | 3.346 |
| 2011-06-16 | 0.400 | 2.867 |
| 2011-03-10 | 0.400 | 2.270 |
| 2010-12-16 | 0.300 | 1.618 |
| 2010-09-14 | 0.300 | 1.969 |
| 2010-06-16 | 0.300 | 2.112 |
| 2010-03-09 | 0.300 | 1.874 |
| 2009-12-10 | 0.300 | 1.760 |
| 2009-09-16 | 0.300 | 1.907 |
| 2009-06-02 | 0.300 | 1.897 |
| 2009-03-24 | 0.400 | 3.461 |
| 2008-12-17 | 0.400 | 3.959 |
| 2008-10-20 | 0.400 | 4.529 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Steel Dynamics's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are thoroughly covered by earnings (7.6x coverage).
- Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).
Income/ dividend checks
We assess Steel Dynamics's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Steel Dynamics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Steel Dynamics has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
STLD Management
CEO
| COMPENSATION | $8,838,057 |
| AGE | 58 |
| TENURE AS CEO | 6.8 years |
CEO Bio
Mr. Mark D. Millett is a Co-founder of Steel Dynamics Inc. and has been its President and Chief Executive Officer since January 01, 2012. Mr. Millett served as Chief Operating Officer at Steel Dynamics Inc. since April 2011. He served as President of OmniSource Corporation, a subsidiary of Steel Dynamics from August 2008 to April 2011 and also served as its Chief Operating Officer until April 2011. He served as an Executive Vice President of Steel Dynamics Inc. Mr. Millett served as Executive Vice President of Metals Recycling and Ferrous Resources at Steel Dynamics Inc. since August 2008. He served as the President and Chief Operating Officer of Flat Rolled Steels and Ferrous Resources at Steel Dynamics Inc. from May 1, 2007 to August 2008. Mr. Millett served as an Executive Vice President of Steel Dynamics Inc., from May 1, 2007 to August 2008 and served as its General Manager of Flat Roll Division from 1993 to August 2008. He served as Vice President of Steel Dynamics Inc., since 1993. Mr. Millett also served as Vice President of Iron Dynamics, a subsidiary of Steel Dynamics Inc. Before Steel Dynamics, he served in technical and management positions at Nucor Corporation, which he joined in 1982. He has been an Executive Director of Steel Dynamics Inc. since 1993. He serves as Director of Iron Dynamics. Mr. Millett holds BS in Metallurgy from the University of Surrey in England.
CEO Compensation
- Mark's compensation has increased by more than 20% in the past year.
Management Team Tenure
Average tenure and age of the Steel Dynamics management team in years:
- The average tenure for the Steel Dynamics management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Mark Millett
Co-Founder
$9M
58
6.8 yrs
Dick Teets
Co-Founder & Director
$210K
63
Theresa Wagler
Executive VP & CFO
$4M
48
11.4 yrs
Glenn Pushis
Senior Vice President of Long Products Steel Group
$2M
52
2.7 yrs
Barry Schneider
Senior Vice President of Flat Roll Steel Group
$2M
49
2.6 yrs
Russ Rinn
Executive Vice President of Metals Recycling
$3M
61
7.3 yrs
Chris Graham
Senior Vice President of Manufacturing Group
$2M
54
2.6 yrs
Marlene Owen
Director of Investor Relations
Jeff Hansen
Vice President of Human Resources and Safety
Rick Poinsatte
VP, Treasurer & Risk Manager
51
10.2 yrs
Board of Directors Tenure
Average tenure and age of the Steel Dynamics board of directors in years:
- The average tenure for the Steel Dynamics board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Keith Busse
Co-Founder & Chairman
$340K
74
25.8 yrs
Mark Millett
Co-Founder
$9M
58
25.8 yrs
Dick Teets
Co-Founder & Director
$210K
63
25.8 yrs
Gabe Shaheen
Independent Director
$240K
64
9.1 yrs
Traci Dolan
Independent Director
$243K
60
6.2 yrs
Brad Seaman
Independent Director
$231K
58
4.8 yrs
Jim Marcuccilli
Lead Independent Director
$281K
67
6.8 yrs
Jürgen Kolb
Independent Director
$230K
75
22.8 yrs
Frank Byrne
Independent Director
$227K
65
13.6 yrs
Ken Cornew
Director
$227K
53
2.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Start | End | Shares | Value (USD) |
|---|---|---|---|---|---|---|---|
| 20. Sep 18 | Sell | Christopher Graham | Individual | 19. Sep 18 | 19. Sep 18 | -10,800 | $-514,188.00 |
| 12. Jun 18 | Sell | Jürgen Kolb | Individual | 11. Jun 18 | 11. Jun 18 | -13,417 | $-685,951.74 |
| 12. Jun 18 | Sell | Keith Busse | Individual | 11. Jun 18 | 11. Jun 18 | -3,590 | $-180,652.70 |
| 11. Jun 18 | Sell | Jürgen Kolb | Individual | 07. Jun 18 | 07. Jun 18 | -4,512 | $-230,186.00 |
| 04. Jun 18 | Sell | Theresa Wagler | Individual | 31. May 18 | 31. May 18 | -20,000 | $-996,894.85 |
Management checks
We assess Steel Dynamics's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Steel Dynamics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
STLD News
External News
Simply Wall St News
Why I Like Steel Dynamics Inc (NASDAQ:STLD)
Attractive stocks have exceptional fundamentals. … In the case of Steel Dynamics Inc (NASDAQ:STLD), there's … , dividend-paying company with a
Simply Wall St - – Full articleDoes Steel Dynamics Inc's (NASDAQ:STLD) CEO Salary Compare Well With Others?
Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability
Simply Wall St - – Full articleShould You Be Tempted To Sell Steel Dynamics Inc (NASDAQ:STLD) At Its Current PE Ratio?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Steel Dynamics Inc (NASDAQ:STLD). … Steel Dynamics Inc (NASDAQ:STLD) is currently trading at a trailing P/E of 12.9x, which is higher than the industry average of 11.5x.
Simply Wall St - – Full articleInterested In Steel Dynamics Inc (NASDAQ:STLD)’s Upcoming US$0.19 Dividend? You Have 2 Days Left
If you are interested in cashing in on Steel Dynamics Inc's (NASDAQ:STLD) upcoming dividend of US$0.19 per share, you only have 2 days left to buy the shares before its ex-dividend date, 28 June 2018, in time for dividends payable on the 13 July 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Steel Dynamics's latest financial data to analyse its dividend attributes. … Check out our latest analysis for Steel Dynamics
Simply Wall St - – Full articleA Look At The Fair Value Of Steel Dynamics Inc (NASDAQ:STLD)
In this article I am going to calculate the intrinsic value of Steel Dynamics Inc (NASDAQ:STLD). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleShould Steel Dynamics Inc (NASDAQ:STLD) Be Your Next Stock Pick?
I've been keeping an eye on Steel Dynamics Inc (NASDAQ:STLD) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe STLD has a lot to offer. … , dividend-paying company with a
Simply Wall St - – Full articleWith An ROE Of 16.85%, Has Steel Dynamics Inc's (NASDAQ:STLD) Management Done A Good Job?
See our latest analysis for Steel Dynamics What you must know about ROE Return on Equity (ROE) is a measure of Steel Dynamics’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Steel Dynamics’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:STLD Last Perf Jan 22nd 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.
Simply Wall St - – Full articleShould You Be Tempted To Buy Steel Dynamics Inc (STLD) At Its Current PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for STLD Price per share = $37.49 Earnings per share = $2.184 ∴ Price-Earnings Ratio = $37.49 ÷ $2.184 = 17.2x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … STLD’s P/E of 17.2x is lower than its industry peers (26.1x), which implies that each dollar of STLD’s earnings is being undervalued by investors. … For example, if you are inadvertently comparing lower risk firms with STLD, then STLD’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.
Simply Wall St - – Full articleHave Investors Already Priced In Steel Dynamics Inc's (STLD) Growth?
Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … STLD’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe STLD should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.
Simply Wall St - – Full articleSTLD Company Info
Map
Description
Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. The company operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment provides hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; merchant bar products, including angles, merchant rounds, flats, channels, and reinforcing bars; beams, channels, and specialty steel sections; and threaded rod products, and cold drawn and heat treated bars. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube industry sectors. This segment sells its products directly to end-users, steel fabricators, and service centers. The Metals Recycling Operations segment is involved in the purchase, process, and resale of ferrous and nonferrous scrap metals into reusable forms and grades. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. This segment also provides transportation logistics, scrap management, marketing, and brokerage services. The Steel Fabrication Operations segment produces steel building components comprising steel joists, girders, trusses, and steel deck products for non-residential steel fabricators. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.
Details
| Name: | Steel Dynamics, Inc. |
| STLD | |
| Exchange: | NasdaqGS |
| Founded: | 1993 |
| $9,701,343,058 | |
| 234,785,650 | |
| Website: | http://www.steeldynamics.com |
| Address: |
Steel Dynamics, Inc. 7575 West Jefferson Boulevard, Fort Wayne, Indiana, 46804, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | STLD | Common Stock | Nasdaq Global Select | US | USD | 22. Nov 1996 | |
| DB | SD5 | Common Stock | Deutsche Boerse AG | DE | EUR | 22. Nov 1996 | |
| BMV | STLD * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 22. Nov 1996 |
Number of employees
Current staff
Industry
| Steel | |
| Materials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/10/19 21:11 |
| End of day share price update: | 2018/10/19 00:00 |
| Last estimates confirmation: | 2018/10/19 |
| Last earnings filing: | 2018/10/17 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2017/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
