NYSE:NUE

Stock Analysis Report

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Executive Summary

Nucor Corporation manufactures and sells steel and steel products. More Details


Snowflake Analysis

Excellent balance sheet average 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

NUE

-0.3%

US Metals and Mining

-1.3%

US Market


1 Year Return

-8.4%

NUE

24.1%

US Metals and Mining

18.5%

US Market

Return vs Industry: NUE underperformed the US Metals and Mining industry which returned 24.1% over the past year.

Return vs Market: NUE underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

NUEIndustryMarket
7 Day-1.8%-0.3%-1.3%
30 Day5.9%3.4%5.3%
90 Day13.9%8.2%7.5%
1 Year-4.9%-8.4%26.9%24.1%21.3%18.5%
3 Year-9.8%-17.8%13.2%5.7%42.4%32.9%
5 Year32.3%13.7%98.3%80.5%84.2%63.5%

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?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NUE ($48.51) is trading below our estimate of fair value ($51)

Significantly Below Fair Value: NUE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NUE is poor value based on its PE Ratio (29x) compared to the US Metals and Mining industry average (19x).

PE vs Market: NUE is poor value based on its PE Ratio (29x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: NUE is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: NUE's PB Ratio (1.4x) is in line with the US Metals and Mining industry average.


Next Steps

Future Growth

How is Nucor forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUE's forecast earnings growth (24% per year) is above the savings rate (2.2%).

Earnings vs Market: NUE's earnings (24% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NUE's revenue (2.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: NUE's revenue (2.3% per year) is forecast to grow slower than 20% 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 (8.8%).


Next Steps

Past Performance

How has Nucor performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUE has a large one-off loss of $324.8M impacting its July 4 2020 financial results.

Growing Profit Margin: NUE's current net profit margins (2.5%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: NUE's earnings have grown significantly by 25.1% 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 (-76.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-39.6%).


Return on Equity

High ROE: NUE's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Nucor's financial position?


Financial Position Analysis

Short Term Liabilities: NUE's short term assets ($8.6B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: NUE's short term assets ($8.6B) exceed its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: NUE's debt to equity ratio (49.5%) is considered high.

Reducing Debt: NUE's debt to equity ratio has reduced from 55.3% to 49.5% over the past 5 years.

Debt Coverage: NUE's debt is well covered by operating cash flow (56.5%).

Interest Coverage: NUE's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Next Steps

Dividend

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

3.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NUE's dividend (3.32%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: NUE's dividend (3.32%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 high payout ratio (96%), NUE's dividend payments are not 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 (48% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Leon Topalian (52 yo)

0.75

Tenure

US$5,487,963

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Leon's total compensation ($USD5.49M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Insufficient data to compare Leon's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Leon Topalian
President0.75yrUS$5.49m0.037%
$ 5.4m
James Frias
CFO, Treasurer & Executive VP10.75yrsUS$6.15m0.10%
$ 15.1m
Raymond Napolitan
Executive Vice President of Engineered Bar Products & Digital7.75yrsUS$5.57m0.012%
$ 1.8m
D. Utermark
Executive Vice President of Fabricated Construction Products6.75yrsUS$5.53m0.026%
$ 3.8m
David Sumoski
Executive Vice President of Bar6.75yrsUS$5.53m0.025%
$ 3.7m
Paul Donnelly
Director of Investor Relationsno datano datano data
Gregory Murphy
VP & General Counselno datano datano data
John Bass
General Manager of Public Affairsno datano datano data
Donovan Marks
General Manager of Human Resourcesno datano datano data
Craig Feldman
Executive Vice President of Raw Materials2.5yrsno data0.026%
$ 3.8m
MaryEmily Slate
Executive Vice President of Sheet1.42yrsno data0.011%
$ 1.6m
Allen Behr
Executive Vice President of Plate and Structural Products0.42yrno data0.012%
$ 1.8m

4.6yrs

Average Tenure

55yo

Average Age

Experienced Management: NUE's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leon Topalian
President0.75yrUS$5.49m0.037%
$ 5.4m
Christopher Kearney
Independent Director12yrsUS$295.00k0.0020%
$ 291.4k
Joseph Rupp
Independent Director0.67yrno datano data
Laurette Koellner
Independent Director5.08yrsUS$300.00k0%
$ 0
Patrick Dempsey
Independent Director3.83yrsUS$275.00k0%
$ 0
John Walker
Non-Executive Independent Chairman of the Board0.75yrUS$322.00k0.00088%
$ 128.9k
Lloyd Austin
Independent Director3.08yrsUS$275.00k0%
$ 0
Nadja West
Independent Director1.08yrsUS$62.50kno data

2.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: NUE's board of directors are not considered experienced ( 2.1 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: NUE insiders have only sold shares 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$14.645b
  • Shares outstanding: 301.90m
  • 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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:26
End of Day Share Price2020/10/20 00:00
Earnings2020/07/04
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.