Steel Dynamics Stock Piotroski F Score

STLD Stock  USD 144.96  0.00  0.00%   
This module uses fundamental data of Steel Dynamics to approximate its Piotroski F score. Steel Dynamics F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Steel Dynamics. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Steel Dynamics financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Steel Dynamics Altman Z Score, Steel Dynamics Correlation, Steel Dynamics Valuation, as well as analyze Steel Dynamics Alpha and Beta and Steel Dynamics Hype Analysis.
For information on how to trade Steel Stock refer to our How to Trade Steel Stock guide.
  
At present, Steel Dynamics' Short and Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Interest Debt Per Share is expected to grow to 19.84, whereas Net Debt is forecasted to decline to about 1.4 B. At present, Steel Dynamics' PTB Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 43.86, whereas Stock Based Compensation To Revenue is forecasted to decline to 0.
At this time, it appears that Steel Dynamics' Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
5.0
Piotroski F Score - Healthy
Current Return On Assets

Positive

Focus
Change in Return on Assets

Increased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Improving

Focus
Asset Turnover Growth

Decrease

Focus
Current Ratio Change

Decrease

Focus
Long Term Debt Over Assets Change

Lower Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

No Change

Focus

Steel Dynamics Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Steel Dynamics is to make sure Steel is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Steel Dynamics' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Steel Dynamics' financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Asset Turnover0.831.2607
Way Down
Slightly volatile
Gross Profit Margin0.210.2153
Fairly Down
Slightly volatile
Net Debt1.4 B1.8 B
Way Down
Very volatile
Total Current Liabilities2.4 B2.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total2.2 B3.7 B
Way Down
Slightly volatile
Total Assets15.7 B14.9 B
Sufficiently Up
Slightly volatile
Total Current Assets7.1 B6.8 B
Sufficiently Up
Slightly volatile

Steel Dynamics F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Steel Dynamics' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Steel Dynamics in a much-optimized way.

About Steel Dynamics Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value Per Share

55.73

At present, Steel Dynamics' Book Value Per Share is projected to increase significantly based on the last few years of reporting.

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

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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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 Altman Z Score, Steel Dynamics Correlation, Steel Dynamics Valuation, as well as analyze Steel Dynamics Alpha and Beta and Steel Dynamics Hype Analysis.
For information on how to trade Steel Stock refer to our How to Trade Steel Stock guide.
You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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
11.42
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.