STLDSTLD
US • —
$226.24
P/E
24.23
PEG
1.04
FCF Yield
—
Rev Growth YoY
+10.4% YoY
Gross Margin
14.0%
Health Score
7/10
D/E Ratio
0.47
Confidence
LOW
Business Snapshot
Steel Dynamics (STLD) is a major U.S. steel producer and metal recycler, generating revenue primarily through its steel operations, metals recycling, and steel fabrication segments. The company operates in the cyclical steel industry, where it competes with integrated mills, minimills, and international producers, positioning itself as a leading minimill operator with a vertically integrated recycling business. With market capitalisation data unavailable for this analysis, a precise cap tier classification is not possible. A defining characteristic of the company is its high operating leverage to steel prices and its strong retail-oriented business model, making it particularly sensitive to the domestic manufacturing and construction cycle.
Financial Health
Gross margin stands at a modest 14.0%, suggesting significant input cost pressure or a lower-value product mix, while the net margin of 7.2% indicates reasonable pricing power net of operating expenses. The balance sheet is a clear strength, with a conservative debt-to-equity ratio of 0.47x and a robust current ratio of 3.06x, pointing to ample liquidity and low insolvency risk...
Risk Assessment
- VALUATION — P/E of 24.23x sits above the sector average of 22x, limiting the margin of safety.
- EARNINGS QUALITY — Only 2 of the last 4 quarters saw earnings beats, indicating guidance has not been consistently conservative.
- FCF / CASH BURN — Free cash flow is unavailable for this analysis, preventing an assessment of cash generation versus reported earnings.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at a modest 14.0%, suggesting significant input cost pressure or a lower-value product mix, while the net margin of 7.2% indicates reasonable pricing power net of operating expenses. The balance sheet is a clear strength, with a conservative debt-to-equity ratio of 0.47x and a robust current ratio of 3.06x, pointing to ample liquidity and low insolvency risk. Steel Dynamics delivers a solid return on equity of 15.2%, confirming effective use of shareholder capital. Overall, despite thin gross margins, the company's financial health is supported by sound leverage and strong liquidity, providing capacity for reinvestment and maintaining dividend stability through the market cycle.
- VALUATION — P/E of 24.23x sits above the sector average of 22x, limiting the margin of safety. - EARNINGS QUALITY — Only 2 of the last 4 quarters saw earnings beats, indicating guidance has not been consistently conservative. - FCF / CASH BURN — Free cash flow is unavailable for this analysis, preventing an assessment of cash generation versus reported earnings. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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