NYSE:NUE

Stock Analysis Report

Executive Summary

Nucor Corporation manufactures and sells steel and steel products.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Nucor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NUE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.2%

NUE

1.0%

US Metals and Mining

7.2%

US Market


1 Year Return

-41.3%

NUE

-28.5%

US Metals and Mining

-10.4%

US Market

Return vs Industry: NUE underperformed the US Metals and Mining industry which returned -28.5% over the past year.

Return vs Market: NUE underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

NUEIndustryMarket
7 Day9.2%1.0%7.2%
30 Day-15.6%-17.6%-12.6%
90 Day-38.0%-32.2%-19.4%
1 Year-39.3%-41.3%-26.4%-28.5%-8.5%-10.4%
3 Year-37.0%-42.3%-24.5%-28.8%15.8%8.3%
5 Year-13.7%-25.7%-3.6%-11.5%35.8%21.0%

Price Volatility Vs. Market

How volatile is Nucor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

8.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NUE ($34.92) is trading above our estimate of fair value ($27.42)

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


Price To Earnings Ratio

PE vs Industry: NUE is good value based on its PE Ratio (8.4x) compared to the Metals and Mining industry average (8.4x).

PE vs Market: NUE is good value based on its PE Ratio (8.4x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: NUE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NUE is good value based on its PB Ratio (1x) compared to the US Metals and Mining industry average (1.1x).


Next Steps

Future Growth

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

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUE's earnings are forecast to decline over the next 3 years (-3.1% per year).

Earnings vs Market: NUE's earnings are forecast to decline over the next 3 years (-3.1% per year).

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

Revenue vs Market: NUE's revenue is expected to decline over the next 3 years (-0.03% per year).

High Growth Revenue: NUE's revenue is forecast to decline over the next 3 years (-0.03% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NUE's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Nucor performed over the past 5 years?

34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUE has high quality earnings.

Growing Profit Margin: NUE's current net profit margins (5.6%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: NUE's earnings have grown significantly by 34.4% per year over the past 5 years.

Accelerating Growth: NUE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NUE had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-26.9%).


Return on Equity

High ROE: NUE's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is Nucor's financial position?


Financial Position Analysis

Short Term Liabilities: NUE's short term assets ($8.2B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: NUE's short term assets ($8.2B) exceed its long term liabilities ($5.1B).


Debt to Equity History and Analysis

Debt Level: NUE's debt to equity ratio (40.9%) is considered high.

Reducing Debt: NUE's debt to equity ratio has reduced from 58.1% to 40.9% over the past 5 years.

Debt Coverage: NUE's debt is well covered by operating cash flow (63.6%).

Interest Coverage: NUE's interest payments on its debt are well covered by EBIT (15.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: NUE's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NUE's dividend (4.61%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: NUE's dividend (4.61%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: NUE's dividends per share have been stable in the past 10 years.

Growing Dividend: NUE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.7%), NUE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NUE's dividends in 3 years are forecast to be well covered by earnings (42.1% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Leon Topalian (51yo)

0.17

Tenure

Mr. Leon J. Topalian has been President of Nucor Corporation since September 5, 2019 and has been its Chief Executive Officer and Director since January 1, 2020. Mr. Topalian served as Chief Operating Offi ...


Leadership Team

NamePositionTenureCompensationOwnership
James Frias
CFO, Treasurer & Executive VP10.17yrsUS$5.43m0.10% $10.5m
Ladd Hall
Executive Vice President of Flat-Rolled Products13.17yrsUS$4.86m0.099% $10.4m
Raymond Napolitan
Executive Vice President of Engineered Bar Products & Digital7.17yrsUS$4.57m0.0077% $806.5k
Leon Topalian
President0.17yrno data0.0037% $388.0k
Paul Donnelly
Director of Investor Relationsno datano datano data
Gregory Murphy
VP & General Counselno datano datano data
Donovan Marks
General Manager of Human Resourcesno datano datano data
D. Utermark
Executive Vice President of Fabricated Construction Products6.17yrsno data0.021% $2.2m
David Sumoski
Executive Vice President of Merchant & Rebar Products6.17yrsno data0.020% $2.1m
Craig Feldman
Executive Vice President of Raw Materials1.83yrsno data0.026% $2.7m

6.2yrs

Average Tenure

54yo

Average Age

Experienced Management: NUE's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leon Topalian
President0.17yrno data0.0037% $388.0k
Christopher Kearney
Independent Director11.42yrsUS$277.76k0.0020% $209.3k
Joseph Rupp
Independent Directorno datano datano data
Laurette Koellner
Independent Director4.42yrsUS$280.96kno data
Patrick Dempsey
Independent Director3.25yrsUS$264.96kno data
John Walker
Non-Executive Independent Chairman of the Board0.17yrUS$311.96k0.00088% $92.5k
Lloyd Austin
Independent Director2.42yrsUS$264.96kno data
Nadja West
Independent Director0.42yrno datano data

2.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NUE's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Ownership Breakdown

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


Top Shareholders

Company Information

Nucor Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nucor Corporation
  • Ticker: NUE
  • Exchange: NYSE
  • Founded: 1958
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$10.516b
  • Shares outstanding: 301.13m
  • Website: https://www.nucor.com

Number of Employees


Location

  • Nucor Corporation
  • 1915 Rexford Road
  • Charlotte
  • North Carolina
  • 28211
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NUENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
NUODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
NUE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0K9LLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
NUEBASE (Buenos Aires Stock Exchange)CEDEAR EACH 2 REPR 1 ORD USD0.40ARARSFeb 2003
N1UE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Nucor Corporation manufactures and sells steel and steel products. It operates in three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and special bar quality products. It also engages in the steel trading and rebar distribution businesses. This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico. The Steel Products segment offers hollow structural section steel tubing products, electrical conduits, steel joists and joist girders, steel decks, fabricated concrete reinforcing steel products, cold finished steel products, steel fasteners, metal building systems, steel grating and expanded metal products, and wire and wire mesh products primarily for use in nonresidential construction applications. This segment also engages in the piling distribution business. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, DRI, and hot briquetted iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal, as well as engages in the natural gas drilling operations. This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals. The company offers its products through its in-house sales forces; and internal distribution and trading companies. The company was incorporated in 1958 and is based in Charlotte, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:28
End of Day Share Price2020/03/30 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.