Nucor Corp
Exchange: NYSESector: Basic MaterialsIndustry: Steel
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures. Nucor, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler. SOURCE Nucor Corporation
Did you know?
Net income compounded at 5.4% annually over 6 years.
Current Price
$172.46
-0.73%GoodMoat Value
$613.12
255.5% undervaluedProfile
Valuation (TTM)
Market Cap$39.47B
P/E22.63
EV$41.18B
P/B1.89
Shares Out228.86M
P/Sales1.21
Revenue$32.49B
EV/EBITDA11.51
Nucor Corp (NUE) Stock Analysis
GoodMoat Analysis
Nucor Corp is a leading American steel producer with a unique, low-cost mini-mill model. While its operational model provides a competitive edge, its current valuation appears unfavourable based on a value investing framework, showing a significant premium to the GoodMoat target price.
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Nucor Corp is a major player in the steel industry, operating a network of efficient mini-mills that use electric arc furnaces to recycle scrap steel. This asset-light, decentralized model provides a structural cost advantage over traditional integrated steelmakers, contributing to a potential moat. Applying the GoodMoat Investment Framework, Nucor's moat likely stems from its scale privilege in infrastructure and supply chain advantages in sourcing scrap, though a full moat score would require deeper analysis of criteria like switching costs and pricing power. Financially, the company shows moderate health with an 8.6% YoY revenue growth and a manageable debt/equity ratio of 0.34, but key quality indicators like a 5.4% profit margin and a negative Free Cash Flow Yield of -0.4% are weak relative to high-quality business benchmarks. The critical issue is valuation. The stock trades at $165.17, which is a P/E of 21.7x. This is dramatically above the GoodMoat target price of $613.12, implying the current market price is a 73% premium to that fair value estimate. According to the Decision Framework, a stock requires a DCF-derived Margin of Safety of at least 20% to be considered favourable. Trading at such a large premium to the target price indicates severe overvaluation, which would classify it as unfavourable and likely fail the Valuation & Risk Gate. For a value investor, this discrepancy between price and target value is a major red flag that warrants extreme caution, making further investigation primarily an academic exercise in understanding the valuation disconnect. Analysis based on data as of 2024-05-15.
Market Cap$39.47B
Current Price$172.46
P/E Ratio22.63
Forward P/E—
PEG Ratio0.70
EPS$7.52
Book Value$91.48
P/B Ratio1.89
NUE Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 4.9B
Revenue
22.6B
FY19
20.1B
FY20
36.5B
FY21
41.5B
FY22
34.7B
FY23
30.7B
FY24
32.5B
FY25
Net Income
1.3B
FY19
721M
FY20
6.8B
FY21
7.6B
FY22
4.5B
FY23
2.0B
FY24
1.7B
FY25
NUE 52-Week Range
$102.13
$193.78
50-Day MA: $174.71200-Day MA: $152.95
Did you know?
Net income compounded at 5.4% annually over 6 years.
Nucor Corp (NUE) Financial Summary
Nucor Corp (NUE) is a Basic Materials company in the Steel industry, listed on NYSE. The stock currently trades at $172.46 with a market capitalization of $39.47B.
Key valuation metrics include a P/E ratio of 22.63, price-to-book ratio of 1.89, and EPS of $7.52. The company reports a profit margin of 5.4% and return on equity of 8.3%.
NUE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $39.47B |
| P/E Ratio | 22.63 |
| EPS | $7.52 |
| P/B Ratio | 1.89 |
| P/S Ratio | 1.21 |
| EV/EBITDA | 11.51 |
| Dividend Yield | 1.30% |
| Profit Margin | 5.4% |
| Return on Equity | 8.3% |
| Debt/Equity | 0.34 |
NUE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $22.59B | $1.27B |
| FY20 | $20.14B | $721.47M |
| FY21 | $36.48B | $6.83B |
| FY22 | $41.51B | $7.61B |
| FY23 | $34.71B | $4.53B |
| FY24 | $30.73B | $2.03B |
| FY25 | $32.49B | $1.74B |
Nucor Corp (NUE) Valuation
Based on GoodMoat's DCF model, Nucor Corp has a fair value estimate of $613.12. At the current price of $172.46, the stock appears 71.9% undervalued relative to our intrinsic value estimate.
NUE Quality Indicators
Nucor Corp maintains a profit margin of 5.4% and an operating margin of 8.0%. Return on equity stands at 8.3%. The current ratio is 2.94. Debt-to-equity ratio is 0.34.
About Nucor Corp
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures. Nucor, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler. SOURCE Nucor Corporation
NUE Free Cash Flow
Nucor Corp generated $-143.00M in trailing twelve-month free cash flow, representing an FCF yield of -0.36%. This low FCF yield may reflect heavy reinvestment or growth spending.
NUE Shares Outstanding
Nucor Corp has 0.23 billion shares outstanding at a share price of $172.46, giving it a market capitalization of $39.47B.
NUE Recent Insider Trades
Recent insider transactions at Nucor Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Topalian Leon J (Chair and CEO) | SELL | 6,454 | $1.05M |
| QUERY KENNETH REX (Executive Vice President) | SELL | 7,452 | $1.46M |
| Behr Allen C (Executive Vice President) | SELL | 7,500 | $1.36M |