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STLD

Steel Dynamics NasdaqGS:STLD Stock Report

Last Price

US$70.95

Market Cap

US$13.0b

7D

1.1%

1Y

21.7%

Updated

30 Sep, 2022

Data

Company Financials +
STLD fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

STLD Stock Overview

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

Steel Dynamics Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Steel Dynamics
Historical stock prices
Current Share PriceUS$70.95
52 Week HighUS$100.37
52 Week LowUS$50.54
Beta1.39
1 Month Change-12.10%
3 Month Change7.13%
1 Year Change21.72%
3 Year Change147.51%
5 Year Change96.16%
Change since IPO1,423.76%

Recent News & Updates

Sep 29

Steel Dynamics: Competitive Energy Price Advantage For Foreseeable Future

Summary While growing expectations of a severe global economic slowdown will probably weigh heavily on steelmakers in the short term, there are reasons to start looking at some U.S.-based companies. Steel Dynamics is a domestic U.S. company that produces steel, as well as processing recycled metals.  It has a healthy financial situation. As the EU metallurgical industry is showing signs of shutting down permanently due to the energy crisis, Steel Dynamics could benefit from higher steel prices and lower energy costs. Investment thesis On the edge of a much-feared and increasingly expected global economic slowdown, steel companies are among the least favored investment options. Steel prices can plummet with demand, leading to tough times for smelters. Steel Dynamics, Inc. (STLD) stock has been down almost 25% from 2022 highs, mostly due to worries about the global economy arising from inflationary pressures, as well as the negative fallout from the Russian war in Ukraine and the economic war that ensued. I expect that Steel Dynamics stock will continue to follow a downward price trajectory for a while longer, together with the broader market. However, STLD is a stock I am keeping an eye on as a potential investment opportunity once things calm down. The EU energy crisis threatens to permanently shut down a lot of smelting capacity in Europe going forward, meaning that higher metals prices should be expected in the future once a new economic recovery begins. Steel Dynamics can benefit from dependable and affordable energy in the U.S. This puts it on a strong path to capitalizing on increasingly embattled competitors in places like Europe, even as global steel prices are set to rise on lower supply due to capacity destruction. Steel Dynamics has been reporting solid financial reports For the first half of 2022, Steel Dynamics reported net earnings of $2.32 billion. In the first half of 2021, it reported net earnings of $1.15 billion, meaning that profits had doubled in the past year. Revenues came in at $11.8 billion for the first half of the year, which is a significant increase from $8 billion in revenues for the same period in 2021. Looking at the profits versus revenues ratio, it is a healthy 20%, which is a very comfortable margin. What this tells us is that even when things will likely get tough for metal smelters, and as the global economy starts to falter, Steel Dynamics will have a significant profitability buffer that should help it to avoid switching from decent profits to deep, potentially dangerous losses. This is especially likely if the coming economic downturn will prove to be deeper than expected, and longer in duration than thought. Another aspect that provides this company with resilience in the face of adverse potential global economic times ahead is its healthy debt situation. Its long-term debt stands at $3 billion currently, and it has been steadily holding at this level for the past year. It is equivalent to about a quarter of its market cap. More importantly, it is only equivalent to about a quarter of the revenue Steel Dynamics earned in the first half of the year, meaning that for the full year it will probably add up to less than 15% of total revenues. Even as its competitors in Europe and elsewhere are on the verge of shutting down due to exorbitant energy prices, Steel Dynamics continues to benefit from reasonable energy prices in the U.S. & Mexico. Eurofer As we can see, the EU is by no means a dominant global steel producer. Having said that, it accounted for 8% of total global output in 2021. The most recent reports suggest that about 3 million tonnes/year worth of capacity is currently offline, mostly due to unsustainably high energy prices, amounting to about 1% of the total. It is still a small decline, relative to other industrial sectors, where, for instance, aluminum smelting declined by 30% so far. The coming winter will probably deliver a much harsher blow to Europe's steel mills, beginning with government-mandated shutdowns. Many steel mills will never reopen next year because Europe's energy crisis will not end with winter. The latest developments on that front include the blowing up of the Nord Stream gas pipelines, which some reports suggest will never be used again as a result of the damage. The EU is now stuck with the prospect of having to bid up the price in the LNG markets in order to win deliveries that are otherwise stuck in long-term contracts. This situation translates into very high energy prices for the foreseeable future in Europe. Henry Hub versus TTF & LNG (Global LNG Hub) Furthermore, Russia's steel exports are being targeted for sanctions. Some of the steel is being diverted to Asia but Russian steel producers are also cutting production. It is true that on the other side of the European equation we have the prospects of severe demand destruction, as Europe's economy is now showing signs of not only deceleration but arguably permanent deindustrialization. At some point however the global economy will recover, while the gates to many of Europe's steelmaking facilities will probably remain permanently shut, and we should also expect sanctions on Russian steel to continue for the foreseeable future. Steel Dynamics is set to continue enjoying a preferential energy environment for the foreseeable future in North America With Russia's energy exports pivoting to Asia, which is by far the most dominant region in terms of steel production, Asian steel producers should in theory experience comparatively low energy bills, when measured up against Europe's increasingly dire situation. Having said that, North American steel producers may find that their own energy bills may be lower not only compared with whatever remnants of an industry that will be left in Europe a few years down the road, but even compared with Asian producers. In the end, most Asian countries are net energy importers, which is not the case with the U.S. or North America as a whole.

Sep 19
If EPS Growth Is Important To You, Steel Dynamics (NASDAQ:STLD) Presents An Opportunity

If EPS Growth Is Important To You, Steel Dynamics (NASDAQ:STLD) Presents An Opportunity

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Sep 15

Steel Dynamics rises as Q3 profit outlook beats estimates

Steel Dynamics (NASDAQ:STLD) expects earnings in the range of $4.93 to $4.97 per diluted share for the third quarter of 2022, the steel producer announced on Thursday. Excluding the impact from costs associated with the startup of its Sinton Texas Flat Roll Steel Mill, adjusted earnings are projected between $5.33 to $5.37 per diluted share, which above consensus estimates of $5.02. Prior year Q3 adjusted earnings were $4.96 per diluted share. The company expects Q3 profitability from its steel operations to be historically strong, but significantly lower sequentially due to lower earnings from flat rolled steel operations. Earnings from metals recycling operations are also expected to be below Q2 based on lower realized pricing and volume. Steel fabrication operations are expected to earn meaningfully higher than record Q2 results, due to continued strong volume and expanding margins, as realized pricing improves and average steel input costs declined. Shares were up over 1% at 11.30AM ET STLD's outlook comes a day after steelmakers fell when Nucor (NUE) issued a downside a 3Q earnings forecast U.S. Steel (X) also issued its Q3 earnings outlook today

Sep 05
Steel Dynamics (NASDAQ:STLD) Seems To Use Debt Quite Sensibly

Steel Dynamics (NASDAQ:STLD) Seems To Use Debt Quite Sensibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

STLDUS Metals and MiningUS Market
7D1.1%1.8%-2.5%
1Y21.7%-14.7%-23.2%

Return vs Industry: STLD exceeded the US Metals and Mining industry which returned -14.1% over the past year.

Return vs Market: STLD exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is STLD's price volatile compared to industry and market?
STLD volatility
STLD Average Weekly Movement6.3%
Metals and Mining Industry Average Movement8.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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.

About the Company

FoundedEmployeesCEOWebsite
199310,640Mark Milletthttps://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 CapUS$12.96b
Earnings (TTM)US$4.39b
Revenue (TTM)US$22.18b

2.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STLD income statement (TTM)
RevenueUS$22.18b
Cost of RevenueUS$15.15b
Gross ProfitUS$7.03b
Other ExpensesUS$2.63b
EarningsUS$4.39b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)24.07
Gross Margin31.69%
Net Profit Margin19.81%
Debt/Equity Ratio40.4%

How did STLD perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

5%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is STLD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STLD?

Other financial metrics that can be useful for relative valuation.

STLD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA2.3x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does STLD's PE Ratio compare to its peers?

STLD PE Ratio vs Peers
The above table shows the PE ratio for STLD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.7x
RS Reliance Steel & Aluminum
5.5x-16.0%US$10.5b
NUE Nucor
3.1x-43.2%US$28.0b
TX Ternium
1.4x-24.4%US$5.4b
SIM Grupo Simec. de
8.6x-25.4%US$4.5b
STLD Steel Dynamics
2.9x-29.1%US$13.0b

Price-To-Earnings vs Peers: STLD is good value based on its Price-To-Earnings Ratio (2.9x) compared to the peer average (4.7x).


Price to Earnings Ratio vs Industry

How does STLD's PE Ratio compare vs other companies in the US Metals and Mining Industry?

Price-To-Earnings vs Industry: STLD is good value based on its Price-To-Earnings Ratio (2.9x) compared to the US Metals and Mining industry average (6.2x)


Price to Earnings Ratio vs Fair Ratio

What is STLD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STLD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.9x
Fair PE Ratio7.6x

Price-To-Earnings vs Fair Ratio: STLD is good value based on its Price-To-Earnings Ratio (2.9x) compared to the estimated Fair Price-To-Earnings Ratio (7.6x).


Share Price vs Fair Value

What is the Fair Price of STLD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STLD ($70.95) is trading below our estimate of fair value ($103.34)

Significantly Below Fair Value: STLD is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Steel Dynamics forecast to perform in the next 1 to 3 years based on estimates from 10 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


-29.1%

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 (-29.1% per year).

Earnings vs Market: STLD's earnings are forecast to decline over the next 3 years (-29.1% 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 (-14.5% per year).

High Growth Revenue: STLD's revenue is forecast to decline over the next 3 years (-14.5% 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 (11.1%).


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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


35.3%

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 (19.8%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: STLD's earnings have grown significantly by 35.3% per year over the past 5 years.

Accelerating Growth: STLD's earnings growth over the past year (209.3%) exceeds its 5-year average (35.3% per year).

Earnings vs Industry: STLD earnings growth over the past year (209.3%) exceeded the Metals and Mining industry 82.4%.


Return on Equity

High ROE: STLD's Return on Equity (58.5%) is considered outstanding.


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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 ($7.8B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: STLD's short term assets ($7.8B) exceed its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: STLD's net debt to equity ratio (22.4%) is considered satisfactory.

Reducing Debt: STLD's debt to equity ratio has reduced from 78.2% to 40.4% over the past 5 years.

Debt Coverage: STLD's debt is well covered by operating cash flow (104.2%).

Interest Coverage: STLD's interest payments on its debt are well covered by EBIT (87x coverage).


Balance Sheet


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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

  • Cash Flow Coverage


1.92%

Current Dividend Yield

Dividend Yield vs Market

Steel Dynamics Dividend Yield vs Market
How does Steel Dynamics dividend yield compare to the market?
SegmentDividend Yield
Company (Steel Dynamics)1.9%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Metals and Mining)3.6%
Analyst forecast in 3 Years (Steel Dynamics)2.0%

Notable Dividend: STLD's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: STLD's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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 (5.3%), STLD's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (10.2%), 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?

6.5yrs

Average management tenure


CEO

Mark Millett (62 yo)

29.67yrs

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

Mark Millett's Compensation vs Steel Dynamics Earnings
How has Mark Millett's remuneration changed compared to Steel Dynamics's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$4b

Mar 31 2022n/an/a

US$4b

Dec 31 2021US$11mUS$1m

US$3b

Sep 30 2021n/an/a

US$2b

Jun 30 2021n/an/a

US$1b

Mar 31 2021n/an/a

US$794m

Dec 31 2020US$11mUS$1m

US$551m

Sep 30 2020n/an/a

US$484m

Jun 30 2020n/an/a

US$535m

Mar 31 2020n/an/a

US$654m

Dec 31 2019US$11mUS$1m

US$671m

Sep 30 2019n/an/a

US$820m

Jun 30 2019n/an/a

US$1b

Mar 31 2019n/an/a

US$1b

Dec 31 2018US$10mUS$1m

US$1b

Sep 30 2018n/an/a

US$1b

Jun 30 2018n/an/a

US$1b

Mar 31 2018n/an/a

US$839m

Dec 31 2017US$9mUS$1m

US$813m

Sep 30 2017n/an/a

US$528m

Jun 30 2017n/an/a

US$532m

Mar 31 2017n/an/a

US$520m

Dec 31 2016US$7mUS$1m

US$382m

Sep 30 2016n/an/a

US$109m

Jun 30 2016n/an/a

US$12m

Mar 31 2016n/an/a

-US$98m

Dec 31 2015US$2mUS$990k

-US$130m

Compensation vs Market: Mark's total compensation ($USD11.00M) is about average for companies of similar size in the US market ($USD13.04M).

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 (6.5 years average tenure).


Board Members

Experienced Board: STLD's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGS:STLD Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
03 Jun 22SellUS$998,400Christopher GrahamIndividual12,000US$83.20
03 Jun 22SellUS$420,890Keith BusseIndividual5,040US$83.51
10 Mar 22SellUS$2,165,046Keith BusseIndividual30,000US$73.12
03 Mar 22SellUS$338,557Christopher GrahamIndividual4,425US$76.51
26 Oct 21SellUS$555,676Miguel AlvarezIndividual8,220US$67.61

Ownership Breakdown

What is the ownership structure of STLD?
Owner TypeNumber of SharesOwnership Percentage
Private Companies4,0830.002%
State or Government76,3300.04%
Individual Insiders10,289,1345.6%
General Public19,987,19310.9%
Institutions152,253,98983.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 61.37% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.22%
BlackRock, Inc.
24,134,478$1.7b-6.53%0.04%
10.95%
The Vanguard Group, Inc.
19,988,483$1.4b-4.17%0.03%
4.66%
State Street Global Advisors, Inc.
8,512,680$604.0m-7.55%0.03%
4.36%
FMR LLC
7,963,261$565.0m0.21%0.05%
3.62%
Dimensional Fund Advisors LP
6,604,265$468.6m0.38%0.12%
2.81%
Richard Teets
5,140,190$364.7m0.01%no data
2.06%
Victory Capital Management Inc.
3,766,084$267.2m-20.21%0.3%
1.76%
Norges Bank Investment Management
3,219,503$228.4m0%0.03%
1.72%
Geode Capital Management, LLC
3,149,027$223.4m11.38%0.03%
1.55%
Mark Millett
2,836,236$201.2m0%no data
1.42%
Wellington Management Group LLP
2,589,074$183.7m-31.19%0.03%
1.39%
Royal London Asset Management Limited
2,530,249$179.5m0.59%0.35%
1.16%
Thrivent Investment Management, Inc.
2,110,251$149.7m-0.24%0.41%
1.11%
AQR Capital Management, LLC
2,035,874$144.4m29.42%0.33%
1.11%
BNY Mellon Asset Management
2,020,930$143.4m-1.31%0.03%
1.06%
Northern Trust Global Investments
1,928,061$136.8m-5.05%0.03%
1.01%
Eaton Vance Management
1,845,428$130.9m-4.26%0.05%
0.98%
T. Rowe Price Group, Inc.
1,790,985$127.1m-1.17%0.02%
0.97%
LSV Asset Management
1,765,308$125.2m-2.55%0.26%
0.88%
Legal & General Investment Management Limited
1,612,042$114.4m-3.59%0.03%
0.75%
Morgan Stanley, Investment Banking and Brokerage Investments
1,373,636$97.5m6.13%0.02%
0.72%
First Trust Advisors LP
1,309,578$92.9m-5.13%0.11%
0.71%
Invesco Capital Management LLC
1,303,024$92.4m22.15%0.07%
0.7%
Acadian Asset Management LLC
1,285,854$91.2m11.83%0.36%
0.69%
UBS Asset Management
1,251,419$88.8m13.92%0.02%

Company Information

Steel Dynamics, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Steel Dynamics, Inc.
  • Ticker: STLD
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: US$12.956b
  • Shares outstanding: 182.61m
  • Website: https://stld.steeldynamics.com

Number of Employees


Location

  • Steel Dynamics, Inc.
  • 7575 West Jefferson Boulevard
  • Fort Wayne
  • Indiana
  • 46804
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STLDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1996
SD5DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1996
STLD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1996
SD5ETLX (Eurotlx)YesCommon StockITEURNov 1996

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.