NasdaqGS:STLD

Stock Analysis Report

Executive Summary

Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally.

Snowflake

Fundamentals

Excellent balance sheet, good value 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


Market Performance


7 Day Return

-3.2%

NasdaqGS:STLD

-3.9%

US Metals and Mining

-1.0%

US Market


1 Year Return

-37.6%

NasdaqGS:STLD

-15.5%

US Metals and Mining

-0.4%

US Market

STLD underperformed the Metals and Mining industry which returned -15.5% over the past year.

STLD underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

STLDIndustryMarket
7 Day-3.2%-3.9%-1.0%
30 Day-11.1%-8.7%-3.3%
90 Day-9.1%0.06%0.4%
1 Year-36.0%-37.6%-13.0%-15.5%1.8%-0.4%
3 Year17.0%10.1%-3.0%-7.9%39.4%30.4%
5 Year31.1%17.2%-17.9%-24.1%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Steel Dynamics's share price is below the future cash flow value, and at a moderate discount (> 20%).

Steel Dynamics's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

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

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

Steel Dynamics is overvalued based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

How is Steel Dynamics expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

-6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Steel Dynamics's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Steel Dynamics's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Steel Dynamics's revenue growth is positive but not above the United States of America market average.

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 earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Steel Dynamics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Steel Dynamics performed over the past 5 years?

50.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Steel Dynamics has delivered over 20% year on year earnings growth in the past 5 years.

Steel Dynamics's 1-year earnings growth is less than its 5-year average (1.8% vs 50.9%)

Steel Dynamics's earnings growth has not exceeded the US Metals and Mining industry average in the past year (1.8% vs 26.3%).


Return on Equity

Steel Dynamics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Steel Dynamics used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Steel Dynamics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Steel Dynamics's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Steel Dynamics's level of debt (60%) 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 (61.4% vs 60% today).

Debt is well covered by operating cash flow (59.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

3.56%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Steel Dynamics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Steel Dynamics's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (5.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Mark Millett (59yo)

7.6yrs

Tenure

US$10,116,690

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

Mark's remuneration is higher than average for companies of similar size in United States of America.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

54yo

Average Age

The tenure for the Steel Dynamics management team is about average.


Board Age and Tenure

12.2yrs

Average Tenure

64.5yo

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.


Insider Trading

More shares have been bought than sold by Steel Dynamics individual insiders in the past 3 months.


Recent Insider Transactions

SellUS$16,06529 Jul 19
Keith Busse
EntityIndividual
Role
Chairman of the Board
Shares500
Max PriceUS$32.13
BuyUS$149,98607 Jun 19
Glenn Pushis
EntityIndividual
Role
Senior Vice President of Special Projects
Shares5,740
Max PriceUS$26.19
BuyUS$51,16004 Jun 19
Russel Rinn
EntityIndividual
Role
Executive Vice President of Metals Recycling
Shares2,000
Max PriceUS$25.58
BuyUS$135,15028 May 19
Gabriel Shaheen
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max PriceUS$27.03
BuyUS$677,00028 Nov 18
Richard Teets
EntityIndividual
Role
Co-Founder & Director
Member of the Board of Directors
Shares20,000
Max PriceUS$33.85
SellUS$514,18820 Sep 18
Christopher Graham
EntityIndividual
Role
Senior Vice President of Long Products Steel Group
Shares10,800
Max PriceUS$47.61

Ownership Breakdown


Management Team

  • Mark Millett (59yo)

    Co-Founder

    • Tenure: 7.6yrs
    • Compensation: $10.12m
  • Theresa Wagler (49yo)

    Executive VP & CFO

    • Tenure: 12.3yrs
    • Compensation: $4.08m
  • Dick Teets (64yo)

    Co-Founder & Director

    • Compensation: $225.00k
  • Barry Schneider (50yo)

    Senior Vice President of Flat Roll Steel Group

    • Tenure: 3.4yrs
    • Compensation: $2.69m
  • Miguel Alvarez (51yo)

    Senior Vice President of Southwest U.S. & Mexico

    • Tenure: 0.5yrs
  • Jeff Hansen

    Vice President of Human Resources & Safety

  • Marlene Owen

    Director of Investor Relations

  • Russ Rinn (62yo)

    Executive Vice President of Metals Recycling

    • Tenure: 8.1yrs
    • Compensation: $3.47m
  • Glenn Pushis (53yo)

    Senior Vice President of Special Projects

    • Tenure: 3.5yrs
    • Compensation: $2.69m
  • Chris Graham (55yo)

    Senior Vice President of Long Products Steel Group

    • Tenure: 3.4yrs
    • Compensation: $2.03m

Board Members

  • Mark Millett (59yo)

    Co-Founder

    • Tenure: 26.6yrs
    • Compensation: $10.12m
  • Brad Seaman (59yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: $247.50k
  • Traci Dolan (61yo)

    Independent Director

    • Tenure: 7.0yrs
    • Compensation: $257.50k
  • Dick Teets (64yo)

    Co-Founder & Director

    • Tenure: 26.6yrs
    • Compensation: $225.00k
  • Jim Marcuccilli (68yo)

    Lead Independent Director

    • Tenure: 7.7yrs
    • Compensation: $292.00k
  • Keith Busse (75yo)

    Co-Founder & Non-Executive Chairman

    • Tenure: 26.6yrs
    • Compensation: $365.00k
  • Gabe Shaheen (65yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: $257.00k
  • Ken Cornew (54yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: $240.00k
  • Frank Byrne (66yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: $244.50k
  • Jürgen Kolb (76yo)

    Independent Director

    • Tenure: 23.6yrs
    • Compensation: $244.50k

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$5.995b
  • Shares outstanding: 219.61m
  • Website: Click here

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

Biography

Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. It operates through three segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:47
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.