Steel Dynamics (NasdaqGS:STLD) - Share price, News & Analysis

STLD fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	5/6

STLD Stock Overview

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States.

Rewards

Trading at 58.5% below our estimate of its fair value

Earnings grew by 389.6% over the past year

Pays a reliable dividend of 1.79%

Risk Analysis

Earnings are forecast to decline by an average of 29.6% per year for the next 3 years

High level of non-cash earnings

Significant insider selling over the past 3 months

Steel Dynamics Competitors

Nucor

NYSE:NUE

US$31.9b

Cleveland-Cliffs

NYSE:CLF

US$11.4b

Ternium

NYSE:TX

US$8.1b

United States Steel

NYSE:X

US$6.2b

Price History & Performance

Summary of all time highs, changes and price drops for Steel Dynamics
Historical stock prices
Current Share Price	US$75.91
52 Week High	US$100.37
52 Week Low	US$50.54
Beta	1.31
1 Month Change	-17.03%
3 Month Change	18.70%
1 Year Change	23.35%
3 Year Change	179.60%
5 Year Change	125.18%
Change since IPO	1,530.28%

Recent News & Updates

Apr 29

We Think Steel Dynamics (NASDAQ:STLD) Might Have The DNA Of A Multi-Bagger

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

	STLD	US Metals and Mining	US Market
7D	2.4%	2.3%	-2.7%
1Y	23.4%	-5.9%	-12.9%

Return vs Industry: STLD exceeded the US Metals and Mining industry which returned -6.1% over the past year.

Return vs Market: STLD exceeded the US Market which returned -12.7% over the past year.

Price Volatility

Is STLD's price volatile compared to industry and market?
STLD volatility
STLD Average Weekly Movement	6.8%
Metals and Mining Industry Average Movement	10.2%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.0%

Stable Share Price: STLD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: STLD's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	10,640	Mark Millett	https://stld.steeldynamics.com

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, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; and engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars.

Steel Dynamics Fundamentals Summary

How do Steel Dynamics's earnings and revenue compare to its market cap?
STLD fundamental statistics
Market Cap	US$14.32b
Earnings (TTM)	US$3.89b
Revenue (TTM)	US$20.43b

3.7x

P/E Ratio

0.7x

P/S Ratio

Is STLD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
STLD income statement (TTM)
Revenue	US$20.43b
Cost of Revenue	US$14.09b
Gross Profit	US$6.34b
Other Expenses	US$2.46b
Earnings	US$3.89b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	20.60
Gross Margin	31.05%
Net Profit Margin	19.02%
Debt/Equity Ratio	44.1%

How did STLD perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

6%

Payout Ratio

Does STLD pay a reliable dividends?

See STLD dividend history and benchmarks

When do you need to buy STLD by to receive an upcoming dividend?
Steel Dynamics dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	39 days
Days until Dividend pay date	55 days

Does STLD pay a reliable dividends?

See STLD dividend history and benchmarks

Valuation

Is Steel Dynamics undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: STLD ($75.91) is trading below our estimate of fair value ($182.93)

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 (3.7x) compared to the US Metals and Mining industry average (8.4x).

PE vs Market: STLD is good value based on its PE Ratio (3.7x) compared to the US market (15.5x).

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 (2.1x) compared to the US Metals and Mining industry average (1.9x).

Future Growth

How is Steel Dynamics forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-29.6%

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 (-29.6% per year).

Earnings vs Market: STLD's earnings are forecast to decline over the next 3 years (-29.6% 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 (-14.2% per year).

High Growth Revenue: STLD's revenue is forecast to decline over the next 3 years (-14.2% 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 (18.1%).

Past Performance

How has Steel Dynamics performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

29.7%

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 (19%) are higher than last year (7.5%).

Past Earnings Growth Analysis

Earnings Trend: STLD's earnings have grown significantly by 29.7% per year over the past 5 years.

Accelerating Growth: STLD's earnings growth over the past year (389.6%) exceeds its 5-year average (29.7% per year).

Earnings vs Industry: STLD earnings growth over the past year (389.6%) exceeded the Metals and Mining industry 98.2%.

Return on Equity

High ROE: STLD's Return on Equity (56.1%) is considered outstanding.

Financial Health

How is Steel Dynamics's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: STLD's short term assets ($7.1B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: STLD's short term assets ($7.1B) exceed its long term liabilities ($4.0B).

Debt to Equity History and Analysis

Debt Level: STLD's net debt to equity ratio (27.1%) is considered satisfactory.

Reducing Debt: STLD's debt to equity ratio has reduced from 78.7% to 44.1% over the past 5 years.

Debt Coverage: STLD's debt is well covered by operating cash flow (89.7%).

Interest Coverage: STLD's interest payments on its debt are well covered by EBIT (91.9x coverage).

Balance Sheet

Dividend

What is Steel Dynamics's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.79%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: STLD's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: STLD's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (4.09%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.8%), STLD's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (13.5%), STLD's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure

CEO

Mark Millett (61 yo)

10.33yrs

Tenure

US$10,999,918

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 ($USD11.00M) is about average for companies of similar size in the US market ($USD13.27M).

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 (6.2 years average tenure).

Board Members

Experienced Board: STLD's board of directors are seasoned and experienced ( 11.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31