Steel Dynamics, Inc.
Steel Dynamics, Inc. Fundamental Analysis
Steel Dynamics, Inc. (STLD) shows weak financial fundamentals with a PE ratio of 23.59, profit margin of 6.52%, and ROE of 13.31%. The company generates $18.2B in annual revenue with weak year-over-year growth of -6.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STLD's fundamental strength across five key dimensions:
Efficiency Score
WeakSTLD struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTLD shows balanced valuation metrics.
Growth Score
WeakSTLD faces weak or negative growth trends.
Financial Health Score
ExcellentSTLD maintains a strong and stable balance sheet.
Profitability Score
WeakSTLD struggles to sustain strong margins.
Key Financial Metrics
Is STLD Expensive or Cheap?
P/E Ratio
STLD trades at 23.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STLD's PEG of 3.79 indicates potential overvaluation.
Price to Book
The market values Steel Dynamics, Inc. at 3.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.64 times EBITDA. This signals the market has high growth expectations.
How Well Does STLD Make Money?
Net Profit Margin
For every $100 in sales, Steel Dynamics, Inc. keeps $6.52 as profit after all expenses.
Operating Margin
Core operations generate 8.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.31 in profit for every $100 of shareholder equity.
ROA
Steel Dynamics, Inc. generates $7.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Steel Dynamics, Inc. generates limited operating cash flow of $1.45B, signaling weaker underlying cash strength.
Free Cash Flow
Steel Dynamics, Inc. generates weak or negative free cash flow of $502.91M, restricting financial flexibility.
FCF Per Share
Each share generates $3.44 in free cash annually.
FCF Yield
STLD converts 1.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How STLD Stacks Against Its Sector Peers
| Metric | STLD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.59 | 27.18 | Better (Cheaper) |
| ROE | 13.31% | 860.00% | Weak |
| Net Margin | 6.52% | -121084.00% (disorted) | Weak |
| Debt/Equity | 0.47 | 0.41 | Neutral |
| Current Ratio | 3.06 | 4.81 | Strong Liquidity |
| ROA | 7.22% | -7173.00% (disorted) | Weak |
STLD outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Steel Dynamics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
136.87%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
223.69%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
86.68%
Industry Style: Cyclical, Commodity, Value
High Growth