NasdaqGS:STLD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with excellent balance sheet 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.4%

STLD

11.6%

US Metals and Mining

12.5%

US Market


1 Year Return

-43.1%

STLD

-29.3%

US Metals and Mining

-12.7%

US Market

Return vs Industry: STLD underperformed the US Metals and Mining industry which returned -29.3% over the past year.

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


Shareholder returns

STLDIndustryMarket
7 Day13.4%11.6%12.5%
30 Day-23.8%-18.7%-14.7%
90 Day-40.4%-33.1%-21.5%
1 Year-41.8%-43.1%-27.3%-29.3%-10.9%-12.7%
3 Year-38.4%-42.1%-25.4%-29.6%12.6%5.4%
5 Year13.1%1.3%-6.3%-13.8%31.9%17.5%

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?

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STLD ($20.29) is trading below our estimate of fair value ($32.36)

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 (6.6x) compared to the Metals and Mining industry average (7.8x).

PE vs Market: STLD is good value based on its PE Ratio (6.6x) compared to the US market (13x).


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 good value based on its PB Ratio (1.1x) compared to the US Metals and Mining industry average (1.1x).


Next Steps

Future Growth

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

-6.7%

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 (-6.7% per year).

Earnings vs Market: STLD's earnings are forecast to decline over the next 3 years (-6.7% per year).

High Growth Earnings: STLD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: STLD's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: STLD's revenue (3.2% 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 (12.1%).


Next Steps

Past Performance

How has Steel Dynamics performed over the past 5 years?

45.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STLD has high quality earnings.

Growing Profit Margin: STLD's current net profit margins (6.4%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: STLD's earnings have grown significantly by 45.5% per year over the past 5 years.

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 (-46.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (-26.9%).


Return on Equity

High ROE: STLD's Return on Equity (16.7%) is considered low.


Next Steps

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 ($1.0B).

Long Term Liabilities: STLD's short term assets ($4.3B) exceed its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: STLD's debt to equity ratio (67.3%) is considered high.

Reducing Debt: STLD's debt to equity ratio has reduced from 101.9% to 67.3% over the past 5 years.

Debt Coverage: STLD's debt is well covered by operating cash flow (51.1%).

Interest Coverage: STLD's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

Inventory Level: STLD has a high level of physical assets or inventory.

Debt Coverage by Assets: STLD's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

4.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STLD's dividend (4.93%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: STLD's dividend (4.93%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 (31.4%), 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 (35.3% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Mark Millett (59yo)

8.17s

Tenure

US$10,615,111

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. Mr. Millett served as Chief Operating Officer at Steel Dynamics Inc ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD10.62M) is above average for companies of similar size in the US market ($USD5.55M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Millett
Co-Founder8.17yrsUS$10.62m1.59% $68.7m
Richard Teets
Co-Founder & Director27.17yrsUS$230.00k2.41% $104.0m
Theresa Wagler
Executive VP12.83yrsUS$4.42m0.18% $7.7m
Glenn Pushis
Senior Vice President of Special Projects4yrsUS$2.81m0.056% $2.4m
Barry Schneider
Senior Vice President of Flat Roll Steel Group4yrsUS$2.81m0.041% $1.8m
Russel Rinn
Executive Vice President of Metals Recycling8.67yrsUS$3.39m0.11% $4.9m
Marlene Owen
Director of Investor Relationsno datano datano data
Jeff Hansen
Vice President of Human Resources & Safetyno datano datano data
Christopher Graham
Senior Vice President of Long Products Steel Group4yrsUS$2.03m0.023% $1.0m
Miguel Alvarez
Senior Vice President of Southwest U.S. & Mexico1yrno data0.012% $505.7k

4.0yrs

Average Tenure

54yo

Average Age

Experienced Management: STLD's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Millett
Co-Founder8.17yrsUS$10.62m1.59% $68.7m
Richard Teets
Co-Founder & Director27.17yrsUS$230.00k2.41% $104.0m
Keith Busse
Co-Founder & Non-Executive Chairman27.17yrsUS$380.00k0.48% $20.6m
Traci Dolan
Independent Director7.58yrsUS$262.50k0.020% $845.8k
Frank Byrne
Independent Director15yrsUS$249.50k0.036% $1.5m
Bradley Seaman
Independent Director6.25yrsUS$252.50k0.018% $757.3k
Sheree Bargabos
Independent Director1.42yrsUS$245.75k0.0037% $157.9k
Gabriel Shaheen
Independent Director10.5yrsUS$262.00k0.036% $1.6m
James Marcuccilli
Lead Independent Director8.25yrsUS$291.00k0.037% $1.6m
Kenneth Cornew
Independent Director3.83yrsUS$245.00k0.011% $457.4k

9.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: STLD's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STLD insiders have bought more shares than they have sold 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$4.315b
  • Shares outstanding: 212.68m
  • Website: https://www.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
SD5BRSE (Berne Stock Exchange)YesCommon StockCHCHFNov 1996

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, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; and merchant-bar-quality products, including rounds, angles, flats, reinforcing bars, and channels and specialty steel sections. This segment is also involved in the turning, polishing, straightening, chamfering, threading, precision saw-cutting, cold drawing, and heat treating of bar products; and cutting to length, straightening, hole punching, shot blasting, welding, and coating of beams, channels, and specialty steel sections. 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 engages 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, marketing, brokerage, and scrap management services. The Steel Fabrication Operations segment produces steel building components comprising steel joists, girders, trusses, and steel deck products for non-residential steel fabricators. The company also exports its products. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:21
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.