Is Steel Dynamics Stock a Good Investment?
Steel Dynamics Investment Advice | STLD |
- Examine Steel Dynamics' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Steel Dynamics' leadership team and their track record. Good management can help Steel Dynamics navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Metals & Mining space and any emerging trends that could impact Steel Dynamics' business and its evolving consumer preferences.
- Compare Steel Dynamics' performance and market position to its competitors. Analyze how Steel Dynamics is positioned in terms of product offerings, innovation, and market share.
- Check if Steel Dynamics pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Steel Dynamics' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Steel Dynamics stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Steel Dynamics is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Steel Dynamics Stock
Researching Steel Dynamics' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 84.0% of the company shares are owned by institutional investors. The book value of Steel Dynamics was at this time reported as 58.74. The company recorded earning per share (EPS) of 9.83. Steel Dynamics last dividend was issued on the 31st of December 2024. The entity had 2:1 split on the 31st of March 2008.
To determine if Steel Dynamics is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Steel Dynamics' research are outlined below:
| Steel Dynamics generated a negative expected return over the last 90 days | |
| Over 84.0% of the company shares are owned by institutional investors | |
| On 10th of January 2025 Steel Dynamics paid $ 0.46 per share dividend to its current shareholders | |
| Latest headline from simplywall.st: Dont Ignore The Insider Selling In Steel Dynamics |
Steel Dynamics Quarterly Accounts Payable |
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Steel Dynamics uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Steel Dynamics. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Steel Dynamics' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 17th of April 2024 Upcoming Quarterly Report | View | |
| 17th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 28th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Steel Dynamics' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Steel Dynamics' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2011-01-24 | 2010-12-31 | 0.08 | 0.07 | -0.01 | 12 | ||
2010-10-18 | 2010-09-30 | 0.1 | 0.09 | -0.01 | 10 | ||
2004-02-04 | 2003-12-31 | 0.05 | 0.04 | -0.01 | 20 | ||
2003-10-22 | 2003-09-30 | 0.04 | 0.05 | 0.01 | 25 | ||
2002-04-16 | 2002-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2001-04-17 | 2001-03-31 | 0.02 | 0.03 | 0.01 | 50 | ||
2001-01-30 | 2000-12-31 | 0.03 | 0.04 | 0.01 | 33 | ||
2000-10-19 | 2000-09-30 | 0.06 | 0.07 | 0.01 | 16 |
Steel Dynamics Target Price Consensus
Steel target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Steel Dynamics' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 14 | Buy |
Most Steel analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Steel stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Steel Dynamics, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationSteel Dynamics Target Price Projection
Steel Dynamics' current and average target prices are 135.83 and 137.56, respectively. The current price of Steel Dynamics is the price at which Steel Dynamics is currently trading. On the other hand, Steel Dynamics' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Steel Dynamics Market Quote on 16th of February 2025
Target Price
Analyst Consensus On Steel Dynamics Target Price
Steel Dynamics Analyst Ratings
Steel Dynamics' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Steel Dynamics stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Steel Dynamics' financials, market performance, and future outlook by experienced professionals. Steel Dynamics' historical ratings below, therefore, can serve as a valuable tool for investors.Know Steel Dynamics' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Steel Dynamics is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Steel Dynamics backward and forwards among themselves. Steel Dynamics' institutional investor refers to the entity that pools money to purchase Steel Dynamics' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ameriprise Financial Inc | 2024-09-30 | 2.6 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 2.4 M | Holocene Advisors, Lp | 2024-09-30 | 2.3 M | Jpmorgan Chase & Co | 2024-09-30 | 2.1 M | Legal & General Group Plc | 2024-09-30 | 1.7 M | Goldman Sachs Group Inc | 2024-09-30 | 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 | 2024-09-30 | 12.3 M |
Steel Dynamics' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 20.68 B.Market Cap |
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Steel Dynamics' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.17 | 0.16 | |
| Return On Capital Employed | 0.23 | 0.12 | |
| Return On Assets | 0.15 | 0.16 | |
| Return On Equity | 0.25 | 0.26 |
Determining Steel Dynamics' profitability involves analyzing its financial statements and using various financial metrics to determine if Steel Dynamics is a good buy. For example, gross profit margin measures Steel Dynamics' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Steel Dynamics' profitability and make more informed investment decisions.
Please note, the presentation of Steel Dynamics' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Steel Dynamics' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Steel Dynamics' management manipulating its earnings.
Evaluate Steel Dynamics' management efficiency
Steel Dynamics has return on total asset (ROA) of 0.0814 % which means that it generated a profit of $0.0814 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1743 %, meaning that it created $0.1743 on every $100 dollars invested by stockholders. Steel Dynamics' management efficiency ratios could be used to measure how well Steel Dynamics manages its routine affairs as well as how well it operates its assets and liabilities. At present, Steel Dynamics' Return On Equity is projected to increase slightly based on the last few years of reporting. At present, Steel Dynamics' Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 632.3 M, whereas Intangibles To Total Assets are forecasted to decline to 0.05.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 47.77 | 50.15 | |
| Tangible Book Value Per Share | 43.79 | 45.98 | |
| Enterprise Value Over EBITDA | 5.18 | 5.71 | |
| Price Book Value Ratio | 2.55 | 2.42 | |
| Price Fair Value | 2.55 | 2.42 | |
| Enterprise Value Multiple | 5.18 | 5.71 | |
| Enterprise Value | 5.6 B | 5.8 B |
The decision-making processes within Steel Dynamics are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Basic technical analysis of Steel Stock
As of the 16th of February 2025, Steel Dynamics has the Risk Adjusted Performance of (0.03), variance of 3.81, and Coefficient Of Variation of (1,762). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Steel Dynamics, as well as the relationship between them. Please validate Steel Dynamics coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and skewness to decide if Steel Dynamics is priced more or less accurately, providing market reflects its prevalent price of 135.83 per share. Given that Steel Dynamics has information ratio of (0.06), we advise you to double-check Steel Dynamics's current market performance to make sure the company can sustain itself at a future point.Steel Dynamics' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Steel Dynamics insiders, such as employees or executives, is commonly permitted as long as it does not rely on Steel Dynamics' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Steel Dynamics insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Steel Dynamics' Outstanding Corporate Bonds
Steel Dynamics issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Steel Dynamics uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Steel bonds can be classified according to their maturity, which is the date when Steel Dynamics has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Steel Dynamics' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Steel Dynamics' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 1.44 | |||
| Coefficient Of Variation | (1,762) | |||
| Standard Deviation | 1.95 | |||
| Variance | 3.81 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.12) | |||
| Total Risk Alpha | (0.12) | |||
| Treynor Ratio | (0.12) | |||
| Maximum Drawdown | 7.89 | |||
| Value At Risk | (2.78) | |||
| Potential Upside | 4.13 | |||
| Skewness | 0.731 | |||
| Kurtosis | 1.56 |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 1.44 | |||
| Coefficient Of Variation | (1,762) | |||
| Standard Deviation | 1.95 | |||
| Variance | 3.81 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.12) | |||
| Total Risk Alpha | (0.12) | |||
| Treynor Ratio | (0.12) | |||
| Maximum Drawdown | 7.89 | |||
| Value At Risk | (2.78) | |||
| Potential Upside | 4.13 | |||
| Skewness | 0.731 | |||
| Kurtosis | 1.56 |
Consider Steel Dynamics' intraday indicators
Steel Dynamics intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Steel Dynamics stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Steel Dynamics time-series forecasting models is one of many Steel Dynamics' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Steel Dynamics' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Steel Stock media impact
Far too much social signal, news, headlines, and media speculation about Steel Dynamics that are available to investors today. That information is available publicly through Steel media outlets and privately through word of mouth or via Steel internal channels. However, regardless of the origin, that massive amount of Steel data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Steel Dynamics news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Steel Dynamics relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Steel Dynamics' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Steel Dynamics alpha.
Steel Dynamics Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Steel Dynamics can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Steel Dynamics Historical Investor Sentiment
Investor biases related to Steel Dynamics' public news can be used to forecast risks associated with an investment in Steel. The trend in average sentiment can be used to explain how an investor holding Steel can time the market purely based on public headlines and social activities around Steel Dynamics. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Steel Dynamics' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Steel Dynamics and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Steel Dynamics news discussions. The higher the estimate score, the more favorable the investor's outlook on Steel Dynamics.
Steel Dynamics Maximum Pain Price Across May 16th 2025 Option Contracts
Steel Dynamics' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Steel Dynamics close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Steel Dynamics' options.
Steel Dynamics Corporate Executives
Elected by the shareholders, the Steel Dynamics' board of directors comprises two types of representatives: Steel Dynamics inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Steel. The board's role is to monitor Steel Dynamics' management team and ensure that shareholders' interests are well served. Steel Dynamics' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Steel Dynamics' outside directors are responsible for providing unbiased perspectives on the board's policies.
| Theresa Wagler | CFO, Chief Accounting Officer and Executive VP | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Steel Dynamics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. For information on how to trade Steel Stock refer to our How to Trade Steel Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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 (0.48) | Dividend Share 1.84 | Earnings Share 9.83 | Revenue Per Share | Quarterly Revenue Growth (0.09) |
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.
In summary, please note that there is a difference between Steel Dynamics' value and its price, as these two are different measures arrived at by various 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.