Steel Dynamics Stock Beta
| STLD Stock | USD 143.57 1.39 0.96% |
Steel Dynamics fundamentals help investors to digest information that contributes to Steel Dynamics' financial success or failures. It also enables traders to predict the movement of Steel Stock. The fundamental analysis module provides a way to measure Steel Dynamics' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Steel Dynamics stock.
Steel | Beta |
Steel Dynamics Company Beta Analysis
Steel Dynamics' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Steel Dynamics Beta | 1.33 |
Most of Steel Dynamics' fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Steel Dynamics is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Steel Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Steel Dynamics is extremely important. It helps to project a fair market value of Steel Stock properly, considering its historical fundamentals such as Beta. Since Steel Dynamics' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Steel Dynamics' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Steel Dynamics' interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Steel Dynamics has a Beta of 1.325. This is 52.3% higher than that of the Metals & Mining sector and 34.08% lower than that of the Materials industry. The beta for all United States stocks is notably lower than that of the firm.
Steel Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Steel Dynamics' direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Steel Dynamics could also be used in its relative valuation, which is a method of valuing Steel Dynamics by comparing valuation metrics of similar companies.Steel Dynamics is currently under evaluation in beta category among its peers.
Steel Dynamics ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Steel Dynamics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Steel Dynamics' managers, analysts, and investors.Environmental | Governance | Social |
Steel Dynamics Institutional Holders
Institutional Holdings refers to the ownership stake in Steel Dynamics that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Steel Dynamics' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Steel Dynamics' value.| Shares | Norges Bank | 2024-06-30 | 2.4 M | First Trust Advisors L.p. | 2024-06-30 | 2.3 M | Pacer Advisors, Inc. | 2024-06-30 | 2.1 M | Ameriprise Financial Inc | 2024-06-30 | 2 M | Legal & General Group Plc | 2024-06-30 | 1.6 M | Goldman Sachs Group Inc | 2024-06-30 | 1.6 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 1.5 M | Northern Trust Corp | 2024-09-30 | 1.5 M | Thrivent Financial For Lutherans | 2024-09-30 | 1.5 M | Vanguard Group Inc | 2024-09-30 | 18.7 M | Blackrock Inc | 2024-06-30 | 12.4 M |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Steel Dynamics will likely underperform.
Steel Fundamentals
| Return On Equity | 0.2 | ||||
| Return On Asset | 0.0909 | ||||
| Profit Margin | 0.1 % | ||||
| Operating Margin | 0.09 % | ||||
| Current Valuation | 23.95 B | ||||
| Shares Outstanding | 152.24 M | ||||
| Shares Owned By Insiders | 6.69 % | ||||
| Shares Owned By Institutions | 84.76 % | ||||
| Number Of Shares Shorted | 3.46 M | ||||
| Price To Earning | 4.60 X | ||||
| Price To Book | 2.41 X | ||||
| Price To Sales | 1.23 X | ||||
| Revenue | 18.8 B | ||||
| Gross Profit | 6.12 B | ||||
| EBITDA | 3.15 B | ||||
| Net Income | 2.45 B | ||||
| Cash And Equivalents | 2 B | ||||
| Cash Per Share | 11.41 X | ||||
| Total Debt | 3.2 B | ||||
| Debt To Equity | 0.38 % | ||||
| Current Ratio | 3.67 X | ||||
| Book Value Per Share | 59.34 X | ||||
| Cash Flow From Operations | 3.52 B | ||||
| Short Ratio | 3.07 X | ||||
| Earnings Per Share | 11.12 X | ||||
| Price To Earnings To Growth | 10.91 X | ||||
| Target Price | 138.77 | ||||
| Number Of Employees | 12.6 K | ||||
| Beta | 1.33 | ||||
| Market Capitalization | 22.07 B | ||||
| Total Asset | 14.91 B | ||||
| Retained Earnings | 13.55 B | ||||
| Working Capital | 4.46 B | ||||
| Current Asset | 2.54 B | ||||
| Current Liabilities | 535.29 M | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 2.23 % | ||||
| Net Asset | 14.91 B | ||||
| Last Dividend Paid | 1.81 |
About Steel Dynamics Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Steel Dynamics's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Steel Dynamics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Steel Dynamics based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Steel Dynamics is a strong investment it is important to analyze Steel Dynamics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Steel Dynamics' future performance. For an informed investment choice regarding Steel Stock, refer to the following important reports:Check out Steel Dynamics Piotroski F Score and Steel Dynamics Altman Z Score analysis. For information on how to trade Steel Stock refer to our How to Trade Steel Stock guide.You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Steel Dynamics. If investors know Steel will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Steel Dynamics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.41) | Dividend Share 1.805 | Earnings Share 11.12 | Revenue Per Share 113.479 | Quarterly Revenue Growth (0.05) |
The market value of Steel Dynamics is measured differently than its book value, which is the value of Steel that is recorded on the company's balance sheet. Investors also form their own opinion of Steel Dynamics' value that differs from its market value or its book value, called intrinsic value, which is Steel Dynamics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Steel Dynamics' market value can be influenced by many factors that don't directly affect Steel Dynamics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Steel Dynamics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Steel Dynamics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Steel Dynamics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.