Steel Dynamics
Market Cap
US$10.9b
Last Updated
2021/04/16 22:34 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 1.4% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet established dividend payer.
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 +/- 6% a week.
Volatility Over Time: STLD's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
0.6%
STLD
5.5%
US Metals and Mining
1.3%
US Market
1 Year Return
119.4%
STLD
97.8%
US Metals and Mining
53.9%
US Market
Return vs Industry: STLD exceeded the US Metals and Mining industry which returned 99.9% over the past year.
Return vs Market: STLD exceeded the US Market which returned 57.5% over the past year.
Shareholder returns
| STLD | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 5.5% | 1.3% |
| 30 Day | 7.4% | 3.5% | 3.3% |
| 90 Day | 31.4% | 15.3% | 8.9% |
| 1 Year | 126.2%119.4% | 102.3%97.8% | 56.6%53.9% |
| 3 Year | 20.4%10.3% | 41.4%31.8% | 64.4%53.6% |
| 5 Year | 137.1%109.4% | 128.6%107.6% | 120.4%95.7% |
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
Here's Why Steel Dynamics (NASDAQ:STLD) Can Manage Its Debt Responsibly2 weeks ago | Simply Wall St
Key Things To Consider Before Buying Steel Dynamics, Inc. (NASDAQ:STLD) For Its Dividend4 weeks ago | Simply Wall St
New Forecasts: Here's What Analysts Think The Future Holds For Steel Dynamics, Inc. (NASDAQ:STLD)Valuation
Is Steel Dynamics undervalued compared to its fair value and its price relative to the market?
32.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STLD ($50.89) is trading below our estimate of fair value ($76.62)
Significantly Below Fair Value: STLD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STLD is poor value based on its PE Ratio (19.5x) compared to the US Metals and Mining industry average (17.3x).
PE vs Market: STLD is good value based on its PE Ratio (19.5x) compared to the US market (22.3x).
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's PB Ratio (2.5x) is in line with the US Metals and Mining industry average.
Future Growth
How is Steel Dynamics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-1.4%
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 (-1.4% per year).
Earnings vs Market: STLD's earnings are forecast to decline over the next 3 years (-1.4% per year).
High Growth Earnings: STLD's earnings are forecast to decline over the next 3 years.
Revenue vs Market: STLD's revenue (7.6% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: STLD's revenue (7.6% per year) is forecast to grow slower than 20% 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 (11%).
Past Performance
How has Steel Dynamics performed over the past 5 years?
23.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STLD has high quality earnings.
Growing Profit Margin: STLD's current net profit margins (5.7%) are lower than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: STLD has become profitable over the past 5 years, growing earnings by 23.2% per year.
Accelerating Growth: STLD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: STLD had negative earnings growth (-17.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-5%).
Return on Equity
High ROE: STLD's Return on Equity (13.1%) is considered low.
Financial Health
How is Steel Dynamics's financial position?
Financial Position Analysis
Short Term Liabilities: STLD's short term assets ($4.3B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: STLD's short term assets ($4.3B) exceed its long term liabilities ($3.7B).
Debt to Equity History and Analysis
Debt Level: STLD's debt to equity ratio (71.4%) is considered high.
Reducing Debt: STLD's debt to equity ratio has reduced from 97.1% to 71.4% over the past 5 years.
Debt Coverage: STLD's debt is well covered by operating cash flow (31.8%).
Interest Coverage: STLD's interest payments on its debt are well covered by EBIT (7.3x coverage).
Balance Sheet
Dividend
What is Steel Dynamics's current dividend yield, its reliability and sustainability?
2.02%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STLD's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: STLD's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.48%).
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 reasonably low payout ratio (38.3%), 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 (29.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.2yrs
Average management tenure
CEO
Mark Millett (60 yo)
9.25yrs
Tenure
US$10,976,625
Compensation
Mr. Mark D. Millett is a Co-founder of Steel Dynamics Inc. and has been its President and Chief Executive Officer since January 01, 2012. He founded Steel Dynamics, Inc. in 1993. Mr. Millett served as Chie...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD10.98M) is about average for companies of similar size in the US market ($USD11.02M).
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 (7.2 years average tenure).
Board Members
Experienced Board: STLD's board of directors are considered experienced (9.3 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$10.874b
- Shares outstanding: 211.22m
- 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 | 2021/04/16 22:34 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| 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.