Steel Dynamics
Market Cap
US$13.2b
Last Updated
2021/07/31 01:37 UTC
Data Sources
Company Financials +
Executive Summary
Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 29% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet with solid track record and pays a dividend.
Similar Companies
Share Price & News
How has Steel Dynamics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STLD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: STLD's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
9.1%
STLD
7.0%
US Metals and Mining
-0.5%
US Market
1 Year Return
135.1%
STLD
58.9%
US Metals and Mining
35.9%
US Market
Return vs Industry: STLD exceeded the US Metals and Mining industry which returned 62.5% over the past year.
Return vs Market: STLD exceeded the US Market which returned 37.5% over the past year.
Shareholder returns
| STLD | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.1% | 7.0% | -0.5% |
| 30 Day | 8.1% | 3.3% | 0.3% |
| 90 Day | 18.9% | 6.1% | 3.1% |
| 1 Year | 141.1%135.1% | 62.4%58.9% | 38.0%35.9% |
| 3 Year | 59.0%45.7% | 60.9%50.2% | 62.9%52.7% |
| 5 Year | 175.7%143.9% | 94.5%78.1% | 121.7%97.3% |
Long-Term Price Volatility Vs. Market
How volatile is Steel Dynamics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Steel Dynamics (NASDAQ:STLD) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of1 week ago | Simply Wall St
We Think Steel Dynamics (NASDAQ:STLD) Can Stay On Top Of Its Debt3 weeks ago | Simply Wall St
Steel Dynamics, Inc.'s (NASDAQ:STLD) Stock Is Going Strong: Is the Market Following Fundamentals?Valuation
Is Steel Dynamics undervalued compared to its fair value and its price relative to the market?
26.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STLD ($64.45) is trading below our estimate of fair value ($87.8)
Significantly Below Fair Value: STLD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STLD is good value based on its PE Ratio (9.5x) compared to the US Metals and Mining industry average (13.9x).
PE vs Market: STLD is good value based on its PE Ratio (9.5x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: STLD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: STLD is overvalued based on its PB Ratio (2.6x) compared to the US Metals and Mining industry average (2.5x).
Future Growth
How is Steel Dynamics forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-29.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STLD's earnings are forecast to decline over the next 3 years (-29% per year).
Earnings vs Market: STLD's earnings are forecast to decline over the next 3 years (-29% per year).
High Growth Earnings: STLD's earnings are forecast to decline over the next 3 years.
Revenue vs Market: STLD's revenue is expected to decline over the next 3 years (-6.8% per year).
High Growth Revenue: STLD's revenue is forecast to decline over the next 3 years (-6.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STLD's Return on Equity is forecast to be low in 3 years time (16.9%).
Past Performance
How has Steel Dynamics performed over the past 5 years?
15.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STLD has a high level of non-cash earnings.
Growing Profit Margin: STLD's current net profit margins (11%) are higher than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: STLD's earnings have grown by 15% per year over the past 5 years.
Accelerating Growth: STLD's earnings growth over the past year (165.4%) exceeds its 5-year average (15% per year).
Earnings vs Industry: STLD earnings growth over the past year (165.4%) exceeded the Metals and Mining industry 75.1%.
Return on Equity
High ROE: STLD's Return on Equity (28.9%) is considered high.
Financial Health
How is Steel Dynamics's financial position?
Financial Position Analysis
Short Term Liabilities: STLD's short term assets ($5.3B) exceed its short term liabilities ($1.9B).
Long Term Liabilities: STLD's short term assets ($5.3B) exceed its long term liabilities ($3.8B).
Debt to Equity History and Analysis
Debt Level: STLD's debt to equity ratio (60%) is considered high.
Reducing Debt: STLD's debt to equity ratio has reduced from 91.7% to 60% over the past 5 years.
Debt Coverage: STLD's debt is well covered by operating cash flow (37.7%).
Interest Coverage: STLD's interest payments on its debt are well covered by EBIT (20.8x coverage).
Balance Sheet
Dividend
What is Steel Dynamics's current dividend yield, its reliability and sustainability?
1.61%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STLD's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: STLD's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: STLD's dividends per share have been stable in the past 10 years.
Growing Dividend: STLD's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (15.1%), STLD's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STLD's dividends in 3 years are forecast to be well covered by earnings (17.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.4yrs
Average management tenure
CEO
Mark Millett (61 yo)
9.5yrs
Tenure
US$10,976,625
Compensation
Mr. Mark D. Millett is a Co-founder of Steel Dynamics Inc. and has been its President and Chief Executive Officer since January 01, 2012 and also serves as its Chairman of the Board since may 24, 2021. He ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD10.98M) is about average for companies of similar size in the US market ($USD11.23M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: STLD's management team is seasoned and experienced (7.4 years average tenure).
Board Members
Experienced Board: STLD's board of directors are considered experienced (8.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STLD insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Steel Dynamics, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Steel Dynamics, Inc.
- Ticker: STLD
- Exchange: NasdaqGS
- Founded: 1993
- Industry: Steel
- Sector: Materials
- Market Cap: US$13.196b
- Shares outstanding: 204.11m
- Website: https://www.steeldynamics.com
Number of Employees
Location
- Steel Dynamics, Inc.
- 7575 West Jefferson Boulevard
- Fort Wayne
- Indiana
- 46804
- United States
Listings
Biography
Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 01:37 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.