NasdaqGS:STLD

Stock Analysis Report

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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


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

STLDIndustryMarket
7 Day9.1%7.0%-0.5%
30 Day8.1%3.3%0.3%
90 Day18.9%6.1%3.1%
1 Year141.1%135.1%62.4%58.9%38.0%35.9%
3 Year59.0%45.7%60.9%50.2%62.9%52.7%
5 Year175.7%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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 01:37
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.