NYSE:NUE

Stock Analysis Report

Executive Summary

Nucor Corporation manufactures and sells steel and steel products in the United States and internationally.

Snowflake

Fundamentals

Flawless balance sheet second-rate 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

-0.8%

NUE

-1.9%

US Metals and Mining

0.3%

US Market


1 Year Return

-10.8%

NUE

2.0%

US Metals and Mining

12.5%

US Market

Return vs Industry: NUE underperformed the US Metals and Mining industry which returned 2% over the past year.

Return vs Market: NUE underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

NUEIndustryMarket
7 Day-0.8%-1.9%0.3%
30 Day5.3%6.0%4.1%
90 Day10.5%8.1%5.6%
1 Year-8.1%-10.8%5.1%2.0%15.0%12.5%
3 Year0.8%-6.9%3.6%-1.9%49.1%39.4%
5 Year18.6%2.4%8.8%0.2%62.8%44.7%

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?

9.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NUE ($55.46) is trading above our estimate of fair value ($35.78)

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 (9.4x) compared to the Metals and Mining industry average (12.3x).

PE vs Market: NUE is good value based on its PE Ratio (9.4x) compared to the US market (18.3x).


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 overvalued based on its PB Ratio (1.6x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

-13.4%

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 (-13.4% per year).

Earnings vs Market: NUE's earnings are forecast to decline over the next 3 years (-13.4% per year).

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

Revenue vs Market: NUE's revenue (0.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NUE's revenue (0.6% 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 (10%).


Next Steps

Past Performance

How has Nucor performed over the past 5 years?

36.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUE has high quality earnings.

Growing Profit Margin: NUE's current net profit margins (7.6%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: NUE's earnings have grown significantly by 36.8% 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 (-13.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.6%).


Return on Equity

High ROE: NUE's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nucor's financial position?


Financial Position Analysis

Short Term Liabilities: NUE's short term assets ($8.7B) exceeds its short term liabilities ($2.6B)

Long Term Liabilities: NUE's short term assets (8.7B) exceeds its long term liabilities (5.1B)


Debt to Equity History and Analysis

Debt Level: NUE's debt to equity ratio (39.4%) is considered satisfactory

Reducing Debt: NUE's debt to equity ratio has reduced from 55.1% to 39.4% over the past 5 years.

Debt Coverage: NUE's debt is well covered by operating cash flow (61%).

Interest Coverage: NUE's interest payments on its debt are well covered by EBIT (20.9x 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 2x debt).


Next Steps

Dividend

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

2.88%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: NUE's dividend (2.88%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: NUE's dividend (2.88%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: NUE's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.2%), 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% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

John Ferriola (66yo)

6.8yrs

Tenure

US$15,559,469

Compensation

Mr. John J. Ferriola has been the Chief Executive Officer at Nucor Corporation since January 1, 2013 and was its President from January 2011 to September 5, 2019. Mr. Ferriola served as the Chief Operatin ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD15.56M) is above average for companies of similar size in the US market ($USD11.12M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.8yrs

Average Tenure

61yo

Average Age

Experienced Management: NUE's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

63yo

Average Age

Experienced Board: NUE's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: NUE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$578,32229 Oct 19
Craig Feldman
EntityIndividual
Shares10,697
Max PriceUS$54.12
SellUS$172,96229 Oct 19
John Ferriola
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,203
Max PriceUS$54.00
SellUS$421,33425 Oct 19
Raymond Napolitan
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Engineered Bar Products
Shares8,000
Max PriceUS$52.71
SellUS$406,28025 Jul 19
Raymond Napolitan
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Engineered Bar Products
Shares7,214
Max PriceUS$56.34
SellUS$327,41325 Jul 19
Leon Topalian
EntityIndividual
Role
President
President & COO
Shares5,798
Max PriceUS$56.47
SellUS$1,081,90924 Jul 19
John Ferriola
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares19,193
Max PriceUS$56.37
SellUS$1,649,98624 Jul 19
Ladd Hall
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Flat-Rolled Products
Shares28,998
Max PriceUS$56.90
SellUS$71,40330 Apr 19
Leon Topalian
EntityIndividual
Role
President
President & COO
Shares1,253
Max PriceUS$56.99
SellUS$582,80029 Apr 19
Raymond Napolitan
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Engineered Bar Products
Shares10,000
Max PriceUS$58.28

Ownership Breakdown

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


Management Team

  • John Ferriola (66yo)

    Chairman & CEO

    • Tenure: 6.8yrs
    • Compensation: US$15.56m
  • Ladd Hall (62yo)

    Executive Vice President of Flat-Rolled Products

    • Tenure: 12.8yrs
    • Compensation: US$4.86m
  • James Frias (62yo)

    CFO, Treasurer & Executive VP

    • Tenure: 9.8yrs
    • Compensation: US$5.43m
  • Dave Sumoski (52yo)

    Executive Vice President of Merchant & Rebar Products

    • Tenure: 5.8yrs
  • D. Utermark (50yo)

    Executive Vice President of Fabricated Construction Products

    • Tenure: 5.8yrs
  • Ray Napolitan (61yo)

    Executive Vice President of Engineered Bar Products

    • Tenure: 6.8yrs
    • Compensation: US$4.57m
  • Leon Topalian (51yo)

    President & COO

    • Tenure: 0.2yrs
  • Donovan Marks

    General Manager of Human Resources

    • Tenure: 0yrs
  • Greg Murphy

    VP & General Counsel

    • Tenure: 0yrs
  • Paul Donnelly

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • John Ferriola (66yo)

    Chairman & CEO

    • Tenure: 6.8yrs
    • Compensation: US$15.56m
  • Chris Kearney (63yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$277.76k
  • Laurette Koellner (64yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$280.96k
  • Patrick Dempsey (55yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$264.96k
  • John Walker (62yo)

    Lead Director

    • Tenure: 2.8yrs
    • Compensation: US$311.96k
  • Lloyd Austin (65yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$264.96k
  • Nadja West (58yo)

    Director

    • Tenure: 0.2yrs

Company Information

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


Key Information

  • Name: Nucor Corporation
  • Ticker: NUE
  • Exchange: NYSE
  • Founded: 1940
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$16.816b
  • Shares outstanding: 303.22m
  • 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

Biography

Nucor Corporation manufactures and sells steel and steel products in the United States and internationally. It operates in three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:39
End of Day Share Price2019/11/11 00:00
Earnings2019/09/28
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.