Steel Dynamics Inc (STLD) Stock Analysis

Steel Dynamics Inc (STLD) Financial Summary

Steel Dynamics Inc (STLD) is a Basic Materials company in the Steel industry, listed on NASDAQ. The stock currently trades at $229.27 with a market capitalization of $33.22B.

Key valuation metrics include a P/E ratio of 24.21, price-to-book ratio of 3.71, and EPS of $7.99. The company reports a profit margin of 7.2% and return on equity of 15.3%.

STLD Key Financial Metrics

STLD Revenue & Earnings History

Steel Dynamics Inc (STLD) Valuation

Based on GoodMoat's DCF model, Steel Dynamics Inc has a fair value estimate of $545.78. At the current price of $229.27, the stock appears 58.0% undervalued relative to our intrinsic value estimate.

STLD Quality Indicators

Steel Dynamics Inc maintains a profit margin of 7.2% and an operating margin of 8.1%. Return on equity stands at 15.3%. The current ratio is 3.06. Debt-to-equity ratio is 0.47.

About Steel Dynamics Inc

Steel Dynamics is a leading industrial metals solutions company, with facilities located throughout the United States, and in Mexico. The company operates using a circular manufacturing model, producing lower-carbon-emission, quality products with recycled scrap as the primary input. Steel Dynamics is one of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform. The company has also recently added aluminum operations, further diversifying its product offerings to supply aluminum flat rolled products with higher recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors. Steel Dynamics is committed to operating with the highest integrity and to being the safest, most efficient producer of high-quality, broadly diversified, value-added metal products. Note Regarding Financial Metrics The company believes that after-tax return-on-invested capital (After-tax ROIC) provides an indication of the effectiveness of the company's invested capital and is calculated as follows: After-tax ROIC = Net Income Attributable to Steel Dynamics, Inc. (Quarterly Average Current Maturities of Long-term Debt + Long-term Debt + Total Equity) Note Regarding Non-GAAP Financial Measures The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that the non-GAAP financial measures EBITDA and Adjusted EBITDA provide additional meaningful information regarding the company's performance and financial strength. Non-GAAP financial measures should be viewed in addition to and not as an alternative for the company's reported results prepared in accordance with GAAP. In addition, not all companies use identical calculations for EBITDA or Adjusted EBITDA; therefore, EBITDA and Adjusted EBITDA included in this release may not be comparable to similarly titled measures of other companies.

STLD Free Cash Flow

Steel Dynamics Inc generated $501.51M in trailing twelve-month free cash flow, representing an FCF yield of 1.51%. This low FCF yield may reflect heavy reinvestment or growth spending.

STLD Shares Outstanding

Steel Dynamics Inc has 0.14 billion shares outstanding at a share price of $229.27, giving it a market capitalization of $33.22B.

STLD Recent Insider Trades

Recent insider transactions at Steel Dynamics Inc include: