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Steel Dynamics, Inc. (STLD)

POSITIVE
Basic MaterialsSteelUnited States

Price

$251.26

Market Cap

$36.01B

Fundamental

66

Technical

85

Composite

72

AI Analysis

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Overview

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through four segments: Steel Operations, Metals Recycling Operations, Steel Fabrication Operations, and Aluminum Operations. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, large unequal leg angles, and reinforcing steel bars, standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products. This segment also engages in turning, polishing, straightening, chamfering, precision saw-cutting, and heat treating of bar products. Its products are used in construction, automotive, manufacturing, transportation, heavy and agricultural equipment, energy, and pipe and tube markets. The Metals Recycling Operations segment is involved in the ferrous and nonferrous scrap metal processing, transportation, marketing, brokerage, and scrap management services. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast-iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. The Steel Fabrication Operations segment produces steel non-residential building components, such as steel joists, joist girders, and steel deck products for non-residential steel fabricators, metal building companies, general construction contractors, developers, property owners, brokers, and governmental entities. The Aluminum Operations segment offers recycled aluminum flat rolled products. The company also exports its products. Steel Dynamics, Inc. was incorporated in 1993 and is headquartered in Fort Wayne, Indiana.

Balance Sheet & Liquidity

Revenue

$6.09B

Net Income

$531M

Free Cash Flow

$310M

Total Equity

$9.22B

Total Liabilities

$7.75B

Current Ratio

3.18

Interest Coverage

-

Debt/EBITDA

11.06

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Fairly Valued

Fair Value

$215.53

Current Price

$251.26

Margin of Safety

-16.6%

Fair Value Range

$140.09 - $290.96

Estimation Methods

Analyst Target:$272.38
DCF:$127.49
PE-based:$153.41
Graham Growth:$567.82
EPV:$86.24
Analyst Consensus:Buy (13B / 6H / 2S)
Last Earnings Surprise:+2.72%

Valuation Metrics

P/E Ratio

67.73

ROE

5.8%

P/B Ratio

3.91

P/FCF

116.21

Gross Margin

15.7%

ROIC

3.7%

Value Creation (Economic Moat)

ROIC

3.7%

WACC

10.7%

ROIC − WACC

-7.0 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (17)

  • EPS shows upward trend
  • EPS CAGR 16.56%
  • Price CAGR 21.59%
  • Debt/Equity ratio
  • Operating Margin 11.5%
  • Positive Free Cash Flow
  • Current Ratio
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 17.6%
  • Revenue Growth 5Y 13.6%
  • Analyst Consensus 62% Buy
  • PEG Ratio 0.89
  • Earnings Quality (OCF/NI) 0.81
  • Share Dilution -0.2%
  • Net Margin Trend 8.7% vs 7.7%
  • Piotroski F-Score 8/9

Failed (9)

  • ROIC 3.7%
  • Gross Margin 15.7%
  • P/FCF 116.21
  • P/B Ratio 3.91
  • CapEx intensity
  • Debt/EBITDA
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg 2.0%

Unavailable (2)

  • Dividend Payout NaN%
  • Interest Coverage

Price Chart

Technical Indicators

RSI (14)

57.33

SMA 50

$248.44

SMA 200

$198.52

MACD

2.71

Volatility

2.3%

Momentum (12m)

97.0%

RSI 57.3, SMA trend bullish, momentum 97.0%.

Piotroski F-Score

8/9

Strong financial health

score
criteria

Earnings Quality

0.81

Moderate: some gap between profits and cash

Share Dilution

-20.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Mark D. MillettCo-Founder, Chairman & CEO65
Mr. Barry T. SchneiderPresident & COO56
Ms. Theresa E. WaglerExecutive VP, CFO & Company Secretary55
Mr. Christopher A. GrahamSenior Vice President of Flat Roll Steel Group61
Mr. David A. LipschitzInvestor Relations Director-
Mr. James S. AndersonSenior Vice President of Long Products Steel Group64
Mr. Miguel AlvarezSenior Vice President of Aluminum Group57
Mr. Matt BellVP & Head of Metals Recycling Platform-
Mr. Richard A. Poinsatte CPASenior VP & Treasurer58
Mr. Chad BickfordVice President of Steel Fabrication Group45

Audit Risk

4

Board Risk

4

Compensation Risk

5

Shareholder Rights Risk

3

Latest News

Recent headlines for STLD, sourced from Markets Gazette.

  • 6/16/2026POSITIVE
    $100 Invested In Steel Dynamics 20 Years Ago Would Be Worth This Much Today

    An investment of $100 in Steel Dynamics Inc. (STLD) made 20 years ago would have grown to a substantial amount today, reflecting the company's strong performance and shareholder returns over the past two decades. This long-term growth indicates robust operational execution, strategic expansion, and effective capital allocation, likely driven by consistent demand in the steel sector and the company's ability to adapt to market cycles. For investors, this historical performance underscores STLD's potential as a long-term wealth-generating asset, highlighting its resilience and capacity for value creation.

  • 5/20/2026POSITIVE
    Here's How Much $100 Invested In Steel Dynamics 5 Years Ago Would Be Worth Today

    An investment of $100 in Steel Dynamics Inc. (STLD) five years ago would have grown to approximately $345 today, representing a substantial return of over 245%. This performance significantly outpaced the broader market, highlighting the company's robust growth and operational efficiency during the period. Factors contributing to this impressive valuation include strong demand for steel products, strategic capacity expansions, and effective cost management, all of which have bolstered investor confidence and share price appreciation.

  • 4/20/2026POSITIVE
    Steel Dynamics Revenue Grows Most Since 2022, Beating Estimates

    Steel Dynamics Inc. reported first-quarter revenue growth that exceeded analyst estimates, marking the fastest expansion since 2022. This surge was propelled by a significant increase in steel prices and a record 3.6 million tons of steel shipments, which also contributed to a strong profit rebound. The company's performance indicates a robust recovery in demand and pricing power within the steel sector, offering a positive outlook for investors.

via Markets Gazette

Disclaimer

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