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Steel Dynamics

Nasdaq:STLD
Snowflake Description

Outstanding track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STLD
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Materials
Company 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 last earnings update was 73 days ago. More info.


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STLD Share Price and Events
7 Day Returns
2.4%
NasdaqGS:STLD
1.1%
US Metals and Mining
2.8%
US Market
1 Year Returns
-26.1%
NasdaqGS:STLD
-27.9%
US Metals and Mining
-5.6%
US Market
STLD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Steel Dynamics (STLD) 2.4% 14% -16.4% -26.1% 111.7% 102.2%
US Metals and Mining 1.1% 8% -7.5% -27.9% 77% -12.3%
US Market 2.8% 7.7% -3.1% -5.6% 40.1% 41.1%
1 Year Return vs Industry and Market
  • STLD outperformed the Metals and Mining industry which returned -27.9% over the past year.
  • STLD underperformed the Market in United States of America which returned -5.6% over the past year.
Price Volatility
STLD
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Steel Dynamics.

NasdaqGS:STLD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:STLD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.027 (1 + (1- 21%) (30.06%))
1.271
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.271 * 7.27%)
11.97%

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.

NasdaqGS:STLD DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 859.24 725.67 757.00 687.00 728.47
Source Analyst x6 Analyst x3 Analyst x1 Analyst x1 Est @ 6.04%
Present Value
Discounted (@ 11.97%)
767.40 578.83 539.28 437.10 413.94
Present value of next 5 years cash flows $2,736.55
NasdaqGS:STLD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $728.47 × (1 + 2.73%) ÷ (11.97% – 2.73%)
$8,100.91
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $8,100.91 ÷ (1 + 11.97%)5
$4,603.27
NasdaqGS:STLD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $2,736.55 + $4,603.27
$7,339.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,339.82 / 229.55
$31.97
NasdaqGS:STLD Discount to Share Price
Calculation Result
Value per share (USD) From above. $31.97
Current discount Discount to share price of $34.30
= -1 x ($34.30 - $31.97) / $31.97
-7.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Steel Dynamics is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NasdaqGS:STLD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $5.48
NasdaqGS:STLD Share Price ** NasdaqGS (2019-01-18) in USD $34.3
United States of America Metals and Mining Industry PE Ratio Median Figure of 43 Publicly-Listed Metals and Mining Companies 9.61x
United States of America Market PE Ratio Median Figure of 3,023 Publicly-Listed Companies 17.12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Steel Dynamics.

NasdaqGS:STLD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:STLD Share Price ÷ EPS (both in USD)

= 34.3 ÷ 5.48

6.26x

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?
Raw Data
NasdaqGS:STLD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
-21.9%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 25 Publicly-Listed Metals and Mining Companies 0.45x
United States of America Market PEG Ratio Median Figure of 2,108 Publicly-Listed Companies 1.28x

*Line of best fit is calculated by linear regression .

NasdaqGS:STLD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.26x ÷ -21.9%

-0.29x

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?
Raw Data
NasdaqGS:STLD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $17.28
NasdaqGS:STLD Share Price * NasdaqGS (2019-01-18) in USD $34.3
United States of America Metals and Mining Industry PB Ratio Median Figure of 105 Publicly-Listed Metals and Mining Companies 1.6x
United States of America Market PB Ratio Median Figure of 5,099 Publicly-Listed Companies 1.78x
NasdaqGS:STLD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:STLD Share Price ÷ Book Value per Share (both in USD)

= 34.3 ÷ 17.28

1.98x

* 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.
X
Value checks
We assess Steel Dynamics's value by looking at:
  1. 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. )
  2. 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)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. 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

 How is Steel Dynamics expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

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!
Annual Growth Rate
-21.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Steel Dynamics expected to grow at an attractive rate?
  • Steel Dynamics's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
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
Raw Data
NasdaqGS:STLD Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:STLD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts -21.9%
NasdaqGS:STLD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts -3.2%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 12.9%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NasdaqGS:STLD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:STLD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 10,102 1,017 1
2021-12-31 10,386 1,079 664 2
2020-12-31 11,332 1,111 788 10
2019-12-31 11,640 1,480 1,004 15
2018-12-31 11,866 1,341 1,270 13
NasdaqGS:STLD Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Steel Dynamics's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Steel Dynamics's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:STLD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Steel Dynamics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STLD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 2.92 3.22 2.63 2.00
2020-12-31 3.47 4.72 2.65 7.00
2019-12-31 4.40 5.27 3.46 10.00
2018-12-31 5.39 5.59 5.29 9.00
NasdaqGS:STLD Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Steel Dynamics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Steel Dynamics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Steel Dynamics's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 64.5%).
Earnings and Revenue History
Steel Dynamics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Steel Dynamics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STLD Past Revenue, Cash Flow and Net Income Data
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

*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).
X
Past performance checks
We assess Steel Dynamics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Steel Dynamics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Steel Dynamics Company Filings, last reported 3 months ago.

NasdaqGS:STLD Past Debt and Equity Data
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
  • 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).
X
Financial health checks
We assess Steel Dynamics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Steel Dynamics has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.19%
Current annual income from Steel Dynamics dividends. Estimated to be 2.26% next year.
If you bought $2,000 of Steel Dynamics shares you are expected to receive $44 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Steel Dynamics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Steel Dynamics's dividend is below the markets top 25% of dividend payers in United States of America (3.7%).
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.
Raw Data
NasdaqGS:STLD Annualized Past and Future Dividends
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 15 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1986 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:STLD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.86 2.00
2020-12-31 0.78 10.00
2019-12-31 0.76 14.00
2018-12-31 0.74 14.00
NasdaqGS:STLD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-11-19 0.750 2.287
2018-08-20 0.750 1.733
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
2009-01-20 0.400 4.188

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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
X
Income/ dividend checks
We assess Steel Dynamics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Steel Dynamics's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Millett
COMPENSATION $8,838,057
AGE 58
TENURE AS CEO 7 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.
  • Mark's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Steel Dynamics management team in years:

7
Average Tenure
53
Average Age
  • 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

TITLE
Co-Founder
COMPENSATION
$9M
AGE
58
TENURE
7 yrs

Dick Teets

TITLE
Co-Founder & Director
COMPENSATION
$210K
AGE
63

Theresa Wagler

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
48
TENURE
11.7 yrs

Glenn Pushis

TITLE
Senior Vice President of Long Products Steel Group
COMPENSATION
$2M
AGE
52
TENURE
2.9 yrs

Barry Schneider

TITLE
Senior Vice President of Flat Roll Steel Group
COMPENSATION
$2M
AGE
49
TENURE
2.8 yrs

Russ Rinn

TITLE
Executive Vice President of Metals Recycling
COMPENSATION
$3M
AGE
61
TENURE
7.5 yrs

Chris Graham

TITLE
Senior Vice President of Manufacturing Group
COMPENSATION
$2M
AGE
54
TENURE
2.8 yrs

Marlene Owen

TITLE
Director of Investor Relations

Jeff Hansen

TITLE
Vice President of Human Resources & Safety

Rick Poinsatte

TITLE
VP, Treasurer & Risk Manager
AGE
51
TENURE
10.4 yrs
Board of Directors Tenure

Average tenure and age of the Steel Dynamics board of directors in years:

11.6
Average Tenure
63.5
Average Age
  • 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

TITLE
Co-Founder & Chairman
COMPENSATION
$340K
AGE
74
TENURE
26 yrs

Mark Millett

TITLE
Co-Founder
COMPENSATION
$9M
AGE
58
TENURE
26 yrs

Dick Teets

TITLE
Co-Founder & Director
COMPENSATION
$210K
AGE
63
TENURE
26 yrs

Gabe Shaheen

TITLE
Independent Director
COMPENSATION
$240K
AGE
64
TENURE
9.3 yrs

Traci Dolan

TITLE
Independent Director
COMPENSATION
$243K
AGE
60
TENURE
6.4 yrs

Brad Seaman

TITLE
Independent Director
COMPENSATION
$231K
AGE
58
TENURE
5.1 yrs

Jim Marcuccilli

TITLE
Lead Independent Director
COMPENSATION
$281K
AGE
67
TENURE
7.1 yrs

Jürgen Kolb

TITLE
Independent Director
COMPENSATION
$230K
AGE
75
TENURE
23 yrs

Frank Byrne

TITLE
Independent Director
COMPENSATION
$227K
AGE
65
TENURE
13.8 yrs

Ken Cornew

TITLE
Director
COMPENSATION
$227K
AGE
53
TENURE
2.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Steel Dynamics insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Nov 18 Buy Richard Teets Individual 28. Nov 18 28. Nov 18 20,000 $33.85 $677,000
20. Sep 18 Sell Christopher Graham Individual 19. Sep 18 19. Sep 18 -10,800 $47.61 $-514,188
12. Jun 18 Sell Jürgen Kolb Individual 11. Jun 18 11. Jun 18 -13,417 $51.27 $-685,952
12. Jun 18 Sell Keith Busse Individual 11. Jun 18 11. Jun 18 -3,590 $50.33 $-180,653
11. Jun 18 Sell Jürgen Kolb Individual 07. Jun 18 07. Jun 18 -4,512 $51.05 $-230,186
04. Jun 18 Sell Theresa Wagler Individual 31. May 18 31. May 18 -20,000 $50.30 $-996,895
X
Management checks
We assess Steel Dynamics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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
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Simply Wall St News

Is Steel Dynamics, Inc. (NASDAQ:STLD) Potentially Underrated?

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Does Steel Dynamics, Inc. (NASDAQ:STLD) Have A Good P/E Ratio?

We'll look at Steel Dynamics, Inc.'s (NASDAQ:STLD) P/E ratio and reflect on what it tells us about the company's share price. … Steel Dynamics has a P/E ratio of 5.81, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Steel Dynamics, Inc. (NASDAQ:STLD): Earnings Expected To Remain Subdued

Looking at Steel Dynamics, Inc.'s (NASDAQ:STLD) earnings update in September 2018, … with profits predicted to drop by -14% next year

Simply Wall St -

Why Investors Should Run Towards Steel Dynamics, Inc. (NASDAQ:STLD)

Today I want to bring to light the market's darling - Steel Dynamics, Inc.. … Looking at its size, financial health and track record, I believe there's an opportunity with Steel Dynamics during these volatile times. … Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally

Simply Wall St -

Want To Know Steel Dynamics Inc's (NASDAQ:STLD) True Stock Value?

Deciding if you should use a relative valuation model over an intrinsic valuation model can be a difficult choice for many investors. … For instance, while my relative valuation model tells me Steel Dynamics Inc's (NASDAQ:STLD) is undervalued by 35.74%, my discounted cash flow (DCF) model signals a 18.29% overvaluation instead. … So, which model is more reliable and why?

Simply Wall St -

Is Steel Dynamics Inc (NASDAQ:STLD) A Financially Sound Company?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Steel Dynamics Inc (NASDAQ:STLD), with a market cap of US$9.1b, often get neglected by retail investors. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … See our latest analysis for Steel Dynamics

Simply Wall St -

Boasting A 32% Return On Equity, Is Steel Dynamics Inc (NASDAQ:STLD) A Top Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Steel Dynamics Inc (NASDAQ:STLD). … That means that for every $1 worth of shareholders' equity, it generated $0.32 in profit.

Simply Wall St -

Estimating The Fair Value Of Steel Dynamics Inc (NASDAQ:STLD)

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Steel Dynamics Inc (NASDAQ:STLD) as an investment opportunity. … by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF).

Simply Wall St -

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 -

Does 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 -

STLD 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
$7,873,641,351
229,552,226
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
Staff numbers
7,635
Steel Dynamics employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/19 23:43
End of day share price update: 2019/01/18 00:00
Last estimates confirmation: 2019/01/17
Last earnings filing: 2018/11/07
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.