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.

Rewards

PE ratio (9.6x) is below the US market (18.5x)

Risk Analysis

Earnings are forecast to decline by an average of -2.5% per year for the next 3 years

Has a high level of debt

Unstable dividend track record

Profit margins (7.4%) are lower than last year (11.5%)



Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Reliance Steel & Aluminum

NYSE:RS

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.3%

STLD

1.8%

US Metals and Mining

-0.3%

US Market


1 Year Return

8.6%

STLD

11.7%

US Metals and Mining

18.6%

US Market

Return vs Industry: STLD underperformed the US Metals and Mining industry which returned 11.7% over the past year.

Return vs Market: STLD underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

STLDIndustryMarket
7 Day3.3%1.8%-0.3%
30 Day13.8%3.7%2.2%
90 Day28.1%11.1%5.6%
1 Year11.9%8.6%15.1%11.7%21.1%18.6%
3 Year0.7%-5.4%1.9%-3.5%45.6%36.2%
5 Year93.5%72.3%30.4%19.9%71.1%52.2%

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?

9.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STLD ($35.1) is trading above our estimate of fair value ($19.47)

Significantly Below Fair Value: STLD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STLD is good value based on its PE Ratio (9.6x) compared to the Metals and Mining industry average (12.3x).

PE vs Market: STLD is good value based on its PE Ratio (9.6x) compared to the US market (18.5x).


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 (1.9x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

-2.5%

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 (-2.5% per year).

Earnings vs Market: STLD's earnings are forecast to decline over the next 3 years (-2.5% per year).

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

Revenue vs Market: STLD's revenue (2.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: STLD's revenue (2.6% 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 (13.4%).


Next Steps

Past Performance

How has Steel Dynamics performed over the past 5 years?

48.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STLD has high quality earnings.

Growing Profit Margin: STLD's current net profit margins (7.4%) are lower than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: STLD's earnings have grown significantly by 48.5% 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 (-36.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (0.7%).


Return on Equity

High ROE: STLD's Return on Equity (20.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Steel Dynamics's financial position?


Financial Position Analysis

Short Term Liabilities: STLD's short term assets ($4.0B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: STLD's short term assets ($4.0B) exceed its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: STLD's debt to equity ratio (60.3%) is considered high.

Reducing Debt: STLD's debt to equity ratio has reduced from 100.8% to 60.3% over the past 5 years.

Debt Coverage: STLD's debt is well covered by operating cash flow (60.7%).

Interest Coverage: STLD's interest payments on its debt are well covered by EBIT (11.4x 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?

2.74%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Steel Dynamics before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: STLD's dividend (2.74%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: STLD's dividend (2.74%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: STLD's dividend payments have been volatile 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 low payout ratio (24.7%), 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 (35.7% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Mark Millett (59yo)

7.9yrs

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

Compensation vs Market: Mark's total compensation ($USD10.12M) is above average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: STLD's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

12.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: STLD's board of directors are seasoned and experienced ( 12.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$247,23809 Sep 19
Miguel Alvarez
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Southwest U.S. & Mexico
Shares8,920
Max PriceUS$27.72
SellUS$16,06529 Jul 19
Keith Busse
EntityIndividual
Role
Chairman of the Board
Co-Founder & Non-Executive Chairman
Shares500
Max PriceUS$32.13
BuyUS$149,98607 Jun 19
Glenn Pushis
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Special Projects
Shares5,740
Max PriceUS$26.19
BuyUS$51,16004 Jun 19
Russel Rinn
EntityIndividual
Role
Senior Key Executive
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
Independent Director
Shares5,000
Max PriceUS$27.03

Ownership Breakdown

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


Management Team

  • Mark Millett (59yo)

    Co-Founder

    • Tenure: 7.9yrs
    • Compensation: US$10.12m
  • Dick Teets (64yo)

    Co-Founder & Director

    • Tenure: 26.9yrs
    • Compensation: US$225.00k
  • Russ Rinn (62yo)

    Executive Vice President of Metals Recycling

    • Tenure: 8.4yrs
    • Compensation: US$3.47m
  • Theresa Wagler (49yo)

    Executive VP & CFO

    • Tenure: 12.6yrs
    • Compensation: US$4.08m
  • Glenn Pushis (53yo)

    Senior Vice President of Special Projects

    • Tenure: 3.8yrs
    • Compensation: US$2.69m
  • Barry Schneider (50yo)

    Senior Vice President of Flat Roll Steel Group

    • Tenure: 3.8yrs
    • Compensation: US$2.69m
  • Miguel Alvarez (51yo)

    Senior Vice President of Southwest U.S. & Mexico

    • Tenure: 0.8yrs
  • Chris Graham (55yo)

    Senior Vice President of Long Products Steel Group

    • Tenure: 3.8yrs
    • Compensation: US$2.03m
  • Marlene Owen

    Director of Investor Relations

    • Tenure: 0yrs
  • Jeff Hansen

    Vice President of Human Resources & Safety

    • Tenure: 0yrs

Board Members

  • Keith Busse (75yo)

    Co-Founder & Non-Executive Chairman

    • Tenure: 26.9yrs
    • Compensation: US$365.00k
  • Mark Millett (59yo)

    Co-Founder

    • Tenure: 7.9yrs
    • Compensation: US$10.12m
  • Dick Teets (64yo)

    Co-Founder & Director

    • Tenure: 26.9yrs
    • Compensation: US$225.00k
  • Traci Dolan (61yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$257.50k
  • Frank Byrne (66yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$244.50k
  • Jürgen Kolb (76yo)

    Independent Director

    • Tenure: 23.9yrs
    • Compensation: US$244.50k
  • Brad Seaman (59yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$247.50k
  • Gabe Shaheen (65yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$257.00k
  • Jim Marcuccilli (68yo)

    Lead Independent Director

    • Tenure: 8yrs
    • Compensation: US$292.00k
  • Ken Cornew (54yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$240.00k

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$7.274b
  • Shares outstanding: 215.45m
  • 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

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 Analysis2019/12/06 23:44
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.