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Steel Dynamics

Nasdaq:STLD
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STLD
Nasdaq
$5B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The last earnings update was 34 days ago. More info.


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  • Steel Dynamics has significant price volatility in the past 3 months.
STLD Share Price and Events
7 Day Returns
14.6%
NasdaqGS:STLD
1%
US Metals and Mining
7.2%
US Market
1 Year Returns
-36.4%
NasdaqGS:STLD
-28.5%
US Metals and Mining
-10.4%
US Market
STLD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Steel Dynamics (STLD) 14.6% -17.4% -33.3% -36.4% -33.9% 10.4%
US Metals and Mining 1% -17.6% -32.2% -28.5% -28.8% -11.5%
US Market 7.2% -12.6% -19.4% -10.4% 8.3% 21%
1 Year Return vs Industry and Market
  • STLD underperformed the Metals and Mining industry which returned -28.5% over the past year.
  • STLD underperformed the Market in United States of America which returned -10.4% over the past year.
Price Volatility
STLD
Industry
5yr Volatility vs Market

STLD Value

 Is Steel Dynamics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Steel Dynamics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Steel Dynamics.

NasdaqGS:STLD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:STLD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.829 (1 + (1- 21%) (58.61%))
1.143
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.143 * 5.44%)
7.96%

Discounted Cash Flow Calculation for NasdaqGS:STLD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Steel Dynamics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:STLD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.96%)
2020 -456.93 Analyst x6 -423.25
2021 74.20 Analyst x5 63.66
2022 696.00 Analyst x1 553.14
2023 639.00 Est @ -8.19% 470.41
2024 605.70 Est @ -5.21% 413.02
2025 586.77 Est @ -3.13% 370.62
2026 576.99 Est @ -1.67% 337.58
2027 573.28 Est @ -0.64% 310.68
2028 573.69 Est @ 0.07% 287.98
2029 576.97 Est @ 0.57% 268.28
Present value of next 10 years cash flows $2,652.00
NasdaqGS:STLD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $576.97 × (1 + 1.74%) ÷ (7.96% – 1.74%)
$9,439.68
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,439.68 ÷ (1 + 7.96%)10
$4,389.25
NasdaqGS:STLD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,652.00 + $4,389.25
$7,041.25
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,041.25 / 212.68
$33.11
NasdaqGS:STLD Discount to Share Price
Calculation Result
Value per share (USD) From above. $33.11
Current discount Discount to share price of $22.54
= -1 x ($22.54 - $33.11) / $33.11
31.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Steel Dynamics is available for.
Intrinsic value
32%
Share price is $22.54 vs Future cash flow value of $33.11
Current Discount Checks
For Steel Dynamics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Steel Dynamics's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Steel Dynamics's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Steel Dynamics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Steel Dynamics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:STLD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.06
NasdaqGS:STLD Share Price ** NasdaqGS (2020-03-31) in USD $22.54
United States of America Metals and Mining Industry PE Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 8.43x
United States of America Market PE Ratio Median Figure of 2,938 Publicly-Listed Companies 13.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Steel Dynamics.

NasdaqGS:STLD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:STLD Share Price ÷ EPS (both in USD)

= 22.54 ÷ 3.06

7.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Steel Dynamics is good value based on earnings compared to the US Metals and Mining industry average.
  • Steel Dynamics is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Steel Dynamics's expected growth come at a high price?
Raw Data
NasdaqGS:STLD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
-9.2%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 22 Publicly-Listed Metals and Mining Companies -0.13x
United States of America Market PEG Ratio Median Figure of 2,007 Publicly-Listed Companies 1.01x

*Line of best fit is calculated by linear regression .

NasdaqGS:STLD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.38x ÷ -9.2%

-0.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Steel Dynamics earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Steel Dynamics's assets?
Raw Data
NasdaqGS:STLD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $19.00
NasdaqGS:STLD Share Price * NasdaqGS (2020-03-31) in USD $22.54
United States of America Metals and Mining Industry PB Ratio Median Figure of 105 Publicly-Listed Metals and Mining Companies 1.06x
United States of America Market PB Ratio Median Figure of 5,134 Publicly-Listed Companies 1.27x
NasdaqGS:STLD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:STLD Share Price ÷ Book Value per Share (both in USD)

= 22.54 ÷ 19.00

1.19x

* Primary Listing of Steel Dynamics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Steel Dynamics is overvalued based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Steel Dynamics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Steel Dynamics has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STLD Future Performance

 How is Steel Dynamics expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-9.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Steel Dynamics expected to grow at an attractive rate?
  • Steel Dynamics's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Steel Dynamics's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Steel Dynamics's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:STLD Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:STLD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts -9.2%
NasdaqGS:STLD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 2.8%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 8.6%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:STLD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:STLD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 11,875 1,074 570 5
2021-12-31 10,056 864 431 9
2020-12-31 9,515 1,029 401 9
2020-04-01
NasdaqGS:STLD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 10,465 1,396 671
2019-09-30 11,019 1,478 820
2019-06-30 11,715 1,455 1,067
2019-03-31 12,035 1,419 1,235
2018-12-31 11,822 1,415 1,258
2018-09-30 11,254 1,117 1,293
2018-06-30 10,474 922 1,048
2018-03-31 9,774 677 839
2017-12-31 9,539 739 813
2017-09-30 9,113 755 528
2017-06-30 8,771 725 532
2017-03-31 8,404 802 520

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Steel Dynamics's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Steel Dynamics's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:STLD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Steel Dynamics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STLD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 2.78 3.39 2.35 5.00
2021-12-31 1.89 2.63 1.12 8.00
2020-12-31 1.53 2.20 -0.10 6.00
2020-04-01
NasdaqGS:STLD Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.06
2019-09-30 3.67
2019-06-30 4.70
2019-03-31 5.35
2018-12-31 5.38
2018-09-30 5.48
2018-06-30 4.42
2018-03-31 3.52
2017-12-31 3.38
2017-09-30 2.18
2017-06-30 2.19
2017-03-31 2.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Steel Dynamics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Steel Dynamics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Steel Dynamics has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STLD Past Performance

  How has Steel Dynamics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Steel Dynamics's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Steel Dynamics has delivered over 20% year on year earnings growth in the past 5 years.
  • Steel Dynamics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Steel Dynamics's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.
Earnings and Revenue History
Steel Dynamics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Steel Dynamics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STLD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 10,464.99 671.10 514.53
2019-09-30 11,018.69 819.68 537.17
2019-06-30 11,715.39 1,067.01 560.00
2019-03-31 12,035.40 1,235.16 574.25
2018-12-31 11,821.84 1,258.38 572.63
2018-09-30 11,254.43 1,293.11 542.18
2018-06-30 10,474.26 1,047.99 512.49
2018-03-31 9,774.46 839.48 488.87
2017-12-31 9,538.80 812.74 485.94
2017-09-30 9,112.91 528.02 481.81
2017-06-30 8,770.84 532.16 481.35
2017-03-31 8,404.02 520.20 478.64
2016-12-31 7,777.11 382.12 445.29
2016-09-30 7,457.56 108.86 422.60
2016-06-30 7,307.17 12.08 397.03
2016-03-31 7,288.28 -98.34 367.70
2015-12-31 7,594.41 -130.31 351.82
2015-09-30 8,520.46 77.90 366.71
2015-06-30 8,908.55 108.45 367.61
2015-03-31 8,973.31 149.21 363.85
2014-12-31 8,755.95 157.02 359.40
2014-09-30 8,103.01 256.71 334.95
2014-06-30 7,675.73 223.02 317.87
2014-03-31 7,407.31 179.68 304.07
2013-12-31 7,372.92 189.31 300.54
2013-09-30 7,213.78 195.23 294.15
2013-06-30 6,995.43 150.58 285.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Steel Dynamics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Steel Dynamics used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Steel Dynamics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Steel Dynamics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Steel Dynamics has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STLD Health

 How is Steel Dynamics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Steel Dynamics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Steel Dynamics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Steel Dynamics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Steel Dynamics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Steel Dynamics Company Filings, last reported 3 months ago.

NasdaqGS:STLD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4,064.86 2,734.34 1,643.63
2019-09-30 4,044.36 2,437.39 1,215.54
2019-06-30 4,048.28 2,428.05 1,086.72
2019-03-31 3,989.46 2,435.39 965.17
2018-12-31 3,887.23 2,376.72 1,057.00
2018-09-30 3,986.08 2,366.76 999.32
2018-06-30 3,699.76 2,370.39 810.45
2018-03-31 3,423.38 2,363.35 1,025.82
2017-12-31 3,306.31 2,381.94 1,028.65
2017-09-30 3,061.02 2,534.14 1,101.96
2017-06-30 3,039.48 2,374.31 908.84
2017-03-31 2,994.71 2,356.71 966.83
2016-12-31 2,888.70 2,356.83 841.48
2016-09-30 2,951.70 2,586.99 1,051.49
2016-06-30 2,824.61 2,591.23 1,052.67
2016-03-31 2,707.51 2,598.30 976.95
2015-12-31 2,671.45 2,594.66 727.03
2015-09-30 2,955.79 2,647.40 473.79
2015-06-30 2,924.70 2,654.65 419.40
2015-03-31 2,923.09 2,654.17 160.98
2014-12-31 2,921.87 2,981.85 361.36
2014-09-30 3,037.99 3,061.85 159.59
2014-06-30 2,959.21 1,803.89 357.49
2014-03-31 2,634.33 2,098.75 342.92
2013-12-31 2,612.37 2,107.59 395.16
2013-09-30 2,557.79 2,108.96 370.06
2013-06-30 2,515.47 2,098.48 243.75
  • Steel Dynamics's level of debt (67.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (101.9% vs 67.3% today).
  • Debt is well covered by operating cash flow (51.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).
X
Financial health checks
We assess Steel Dynamics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Steel Dynamics has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STLD Dividends

 What is Steel Dynamics's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.44%
Current annual income from Steel Dynamics dividends. Estimated to be 4.36% next year.
If you bought $2,000 of Steel Dynamics shares you are expected to receive $89 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Steel Dynamics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.95%).
  • Steel Dynamics's dividend is below the markets top 25% of dividend payers in United States of America (5.4%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:STLD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:STLD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.00 6.00
2021-12-31 0.99 10.00
2020-12-31 0.97 10.00
2020-04-01
NasdaqGS:STLD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-26 1.000 4.663
2019-11-22 0.960 2.987
2019-08-26 0.960 3.223
2019-05-17 0.960 3.343
2019-02-14 0.960 2.784
2018-11-19 0.750 2.221
2018-08-20 0.750 1.733
2018-06-12 0.750 1.620
2018-02-20 0.750 1.600
2017-11-21 0.620 1.436
2017-09-19 0.620 1.705
2017-06-16 0.620 1.772
2017-03-17 0.620 1.785
2016-12-16 0.560 1.558
2016-09-19 0.560 1.943
2016-06-13 0.560 2.201
2016-03-16 0.560 2.345
2015-12-17 0.550 3.058
2015-09-18 0.550 3.095
2015-06-22 0.550 2.771
2015-03-11 0.550 2.616
2014-12-17 0.460 2.485
2014-09-17 0.460 2.081
2014-06-16 0.460 2.223
2014-03-18 0.460 2.569
2013-12-17 0.440 2.488
2013-09-17 0.440 2.451
2013-06-17 0.440 2.832
2013-03-04 0.440 2.906
2013-02-27 0.400 2.658
2013-01-28 0.400 2.600
2012-09-11 0.400 3.071
2012-06-15 0.400 3.250
2012-03-16 0.400 3.246
2011-12-16 0.400 2.725
2011-09-12 0.400 3.346
2011-06-16 0.400 2.867
2011-03-10 0.400 2.270
2010-12-16 0.300 1.618
2010-09-14 0.300 1.969
2010-06-16 0.300 2.112
2010-03-09 0.300 1.874
2009-12-10 0.300 1.760
2009-09-16 0.300 1.907
2009-06-02 0.300 1.897

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Steel Dynamics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Steel Dynamics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Steel Dynamics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Steel Dynamics has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STLD Management

 What is the CEO of Steel Dynamics's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Millett
COMPENSATION $10,615,111
AGE 59
TENURE AS CEO 8.2 years
CEO Bio

Mr. Mark D. Millett is a Co-founder of Steel Dynamics Inc. and has been its President and Chief Executive Officer since January 01, 2012. Mr. Millett served as Chief Operating Officer at Steel Dynamics Inc. since April 2011. He served as President of OmniSource Corporation, a subsidiary of Steel Dynamics from August 2008 to April 2011 and also served as its Chief Operating Officer until April 2011. He served as an Executive Vice President of Steel Dynamics Inc. Mr. Millett served as Executive Vice President of Metals Recycling and Ferrous Resources at Steel Dynamics Inc. since August 2008. He served as the President and Chief Operating Officer of Flat Rolled Steels and Ferrous Resources at Steel Dynamics Inc. from May 1, 2007 to August 2008. Mr. Millett served as an Executive Vice President of Steel Dynamics Inc., from May 1, 2007 to August 2008 and served as its General Manager of Flat Roll Division from 1993 to August 2008. He served as Vice President of Steel Dynamics Inc., since 1993. Mr. Millett also served as Vice President of Iron Dynamics, a subsidiary of Steel Dynamics Inc. Before Steel Dynamics, he served in technical and management positions at Nucor Corporation, which he joined in 1982. He has been an Executive Director of Steel Dynamics Inc. since 1993. He serves as Director of Iron Dynamics. Mr. Millett holds BS in Metallurgy from the University of Surrey in England.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Steel Dynamics management team in years:

4.1
Average Tenure
54
Average Age
  • The tenure for the Steel Dynamics management team is about average.
Management Team

Mark Millett

TITLE
Co-Founder
COMPENSATION
$11M
AGE
59
TENURE
8.2 yrs

Dick Teets

TITLE
Co-Founder & Director
COMPENSATION
$230K
AGE
64

Theresa Wagler

TITLE
Executive VP
COMPENSATION
$4M
AGE
49
TENURE
12.8 yrs

Glenn Pushis

TITLE
Senior Vice President of Special Projects
COMPENSATION
$3M
AGE
53
TENURE
4.1 yrs

Barry Schneider

TITLE
Senior Vice President of Flat Roll Steel Group
COMPENSATION
$3M
AGE
50
TENURE
4 yrs

Russ Rinn

TITLE
Executive Vice President of Metals Recycling
COMPENSATION
$3M
AGE
62
TENURE
8.7 yrs

Marlene Owen

TITLE
Director of Investor Relations

Jeff Hansen

TITLE
Vice President of Human Resources & Safety

Chris Graham

TITLE
Senior Vice President of Long Products Steel Group
COMPENSATION
$2M
AGE
55
TENURE
4 yrs

Miguel Alvarez

TITLE
Senior Vice President of Southwest U.S. & Mexico
AGE
51
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Steel Dynamics board of directors in years:

9.4
Average Tenure
63.5
Average Age
  • The tenure for the Steel Dynamics board of directors is about average.
Board of Directors

Keith Busse

TITLE
Co-Founder & Non-Executive Chairman
COMPENSATION
$380K
AGE
75
TENURE
27.2 yrs

Mark Millett

TITLE
Co-Founder
COMPENSATION
$11M
AGE
59
TENURE
27.2 yrs

Dick Teets

TITLE
Co-Founder & Director
COMPENSATION
$230K
AGE
64
TENURE
27.2 yrs

Gabe Shaheen

TITLE
Independent Director
COMPENSATION
$262K
AGE
65
TENURE
10.5 yrs

Traci Dolan

TITLE
Independent Director
COMPENSATION
$263K
AGE
61
TENURE
7.6 yrs

Brad Seaman

TITLE
Independent Director
COMPENSATION
$253K
AGE
59
TENURE
6.3 yrs

Jim Marcuccilli

TITLE
Lead Independent Director
COMPENSATION
$291K
AGE
68
TENURE
8.3 yrs

Frank Byrne

TITLE
Independent Director
COMPENSATION
$250K
AGE
66
TENURE
15 yrs

Ken Cornew

TITLE
Independent Director
COMPENSATION
$245K
AGE
54
TENURE
3.8 yrs

Sheree Bargabos

TITLE
Independent Director
COMPENSATION
$246K
AGE
63
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Steel Dynamics individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 20 Buy Miguel Alvarez Individual 10. Mar 20 10. Mar 20 9,300 $21.32 $198,276
11. Mar 20 Buy Bradley Seaman Individual 11. Mar 20 11. Mar 20 6,000 $20.85 $125,100
11. Mar 20 Buy Gabriel Shaheen Individual 09. Mar 20 09. Mar 20 3,500 $23.11 $80,885
06. Mar 20 Buy Gabriel Shaheen Individual 05. Mar 20 05. Mar 20 5,000 $25.82 $129,100
02. Mar 20 Buy Glenn Pushis Individual 28. Feb 20 28. Feb 20 18,600 $26.36 $485,896
02. Mar 20 Buy Russel Rinn Individual 28. Feb 20 28. Feb 20 5,000 $26.30 $131,500
18. Feb 20 Buy Kenneth Cornew Individual 13. Feb 20 13. Feb 20 6,000 $29.32 $175,809
09. Sep 19 Buy Miguel Alvarez Individual 06. Sep 19 06. Sep 19 8,920 $27.72 $247,238
29. Jul 19 Sell Keith Busse Individual 25. Jul 19 25. Jul 19 -500 $32.13 $-16,065
07. Jun 19 Buy Glenn Pushis Individual 05. Jun 19 05. Jun 19 5,740 $26.19 $149,986
04. Jun 19 Buy Russel Rinn Individual 31. May 19 31. May 19 2,000 $25.58 $51,160
28. May 19 Buy Gabriel Shaheen Individual 24. May 19 24. May 19 5,000 $27.03 $135,150
X
Management checks
We assess Steel Dynamics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Steel Dynamics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STLD News

Simply Wall St News

Should You Consider Steel Dynamics, Inc. (NASDAQ:STLD)?

If you're interested in understanding beyond my broad commentary, take a look at the report on Steel Dynamics here.Excellent balance sheet, good value and pays a dividend STLD delivered a satisfying double-digit returns of 26% in the most recent year. … Investors have the opportunity to buy into the stock to reap capital gains, if STLD's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. … Take a look at our free research report of analyst consensus for STLD’s outlook.Dividend Income vs Capital Gains: Does STLD return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends?

Simply Wall St -

How Much is Steel Dynamics, Inc.'s (NASDAQ:STLD) CEO Getting Paid?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for Steel Dynamics How Does Mark Millett's Compensation Compare With Similar Sized Companies? … We compared the total CEO remuneration paid by Steel Dynamics, Inc., and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Read This Before You Buy Steel Dynamics, Inc. (NASDAQ:STLD) Because Of Its P/E Ratio

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Steel Dynamics: P/E of 6.18 = $28.93 ÷ $4.68 (Based on the trailing twelve months to June 2019.) Is A High P/E Ratio Good? … How Does Steel Dynamics's Debt Impact Its P/E Ratio? … The Bottom Line On Steel Dynamics's P/E Ratio Steel Dynamics trades on a P/E ratio of 6.2, which is below the US market average of 17.3.

Simply Wall St -

Can You Imagine How Steel Dynamics's (NASDAQ:STLD) Shareholders Feel About The 56% Share Price Increase?

(NASDAQ:STLD) share price is up 56% in the last five years, slightly above the market return. … Over half a decade, Steel Dynamics managed to grow its earnings per share at 36% a year. … A Different Perspective Steel Dynamics shareholders are down 30% for the year (even including dividends), but the market itself is up 7.9%.

Simply Wall St -

Steel Dynamics, Inc. (NASDAQ:STLD) Insiders Increased Their Holdings

So we'll take a look at whether insiders have been buying or selling shares in Steel Dynamics, Inc. … Insider Ownership of Steel Dynamics For a common shareholder, it is worth checking how many shares are held by company insiders. … When combined with notable insider ownership, these factors suggest Steel Dynamics insiders are well aligned, and quite possibly think the share price is too low.

Simply Wall St -

Steel Dynamics (NASDAQ:STLD) Seems To Use Debt Quite Sensibly

View our latest analysis for Steel Dynamics What Is Steel Dynamics's Net Debt? … NasdaqGS:STLD Historical Debt, July 9th 2019 A Look At Steel Dynamics's Liabilities The latest balance sheet data shows that Steel Dynamics had liabilities of US$1.00b due within a year, and liabilities of US$2.86b falling due after that. … Because it carries more debt than cash, we think it's worth watching Steel Dynamics's balance sheet over time.

Simply Wall St -

It's Time To Buy Steel Dynamics, Inc. (NASDAQ:STLD)

We all know Steel Dynamics, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … See our latest analysis for Steel Dynamics Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. … Characteristics I value in a long term investment are proven in Steel Dynamics, and I can continue to sleep easy at night with the stock as part of my portfolio.

Simply Wall St -

Does Steel Dynamics, Inc. (NASDAQ:STLD) Have A Place In Your Dividend Portfolio?

Dividend paying stocks like Steel Dynamics, Inc. … In this case, Steel Dynamics likely looks attractive to investors, given its 3.3% dividend yield and a payment history of over ten years. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. It's good to see Steel Dynamics has been growing its earnings per share at 44% a year over the past 5 years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

An Intrinsic Calculation For Steel Dynamics, Inc. (NASDAQ:STLD) Suggests It's 27% Undervalued

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $765.90 $625.33 $-101.00 $484.50 $616.00 $673.72 $723.42 $766.71 $805.10 $839.91 Growth Rate Estimate Source Analyst x6 Analyst x3 Analyst x1 Analyst x2 Analyst x1 Est @ 9.37% Est @ 7.38% Est @ 5.98% Est @ 5.01% Est @ 4.32% Present Value ($, Millions) Discounted @ 10.22% $694.89 $514.76 $-75.43 $328.30 $378.71 $375.79 $366.10 $352.04 $335.39 $317.45 Present Value of 10-year Cash Flow (PVCF)= $3.59b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$840m × (1 + 2.7%) ÷ (10.2% – 2.7%) = US$12b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$12b ÷ ( 1 + 10.2%)10 = $4.35b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $7.94b. … NasdaqGS:STLD Intrinsic value, June 13th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is Steel Dynamics, Inc.'s (NASDAQ:STLD) ROE Of 31% Impressive?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Steel Dynamics: 31% = US$1.2b ÷ US$4.0b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Steel Dynamics Have A Good Return On Equity? … Steel Dynamics's Debt And Its 31% ROE While Steel Dynamics does have some debt, with debt to equity of just 0.63, we wouldn't say debt is excessive.

Simply Wall St -

STLD Company Info

Description

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; and merchant-bar-quality products, including rounds, angles, flats, reinforcing bars, and channels and specialty steel sections. This segment is also involved in the turning, polishing, straightening, chamfering, threading, precision saw-cutting, cold drawing, and heat treating of bar products; and cutting to length, straightening, hole punching, shot blasting, welding, and coating of beams, channels, and specialty steel sections. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube industry sectors. This segment sells its products directly to end-users, steel fabricators, and service centers. The Metals Recycling Operations segment engages in the purchase, process, and resale of ferrous and nonferrous scrap metals into reusable forms and grades. 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. This segment also provides transportation logistics, marketing, brokerage, and scrap management services. The Steel Fabrication Operations segment produces steel building components comprising steel joists, girders, trusses, and steel deck products for non-residential steel fabricators. The company also exports its products. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.

Details
Name: Steel Dynamics, Inc.
STLD
Exchange: NasdaqGS
Founded: 1993
$4,793,781,459
212,678,858
Website: http://www.steeldynamics.com
Address: Steel Dynamics, Inc.
7575 West Jefferson Boulevard,
Fort Wayne,
Indiana, 46804,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS STLD Common Stock Nasdaq Global Select US USD 22. Nov 1996
DB SD5 Common Stock Deutsche Boerse AG DE EUR 22. Nov 1996
BRSE SD5 Common Stock Berne Stock Exchange CH CHF 22. Nov 1996
BMV STLD * Common Stock Bolsa Mexicana de Valores MX MXN 22. Nov 1996
ETLX SD5 Common Stock Eurotlx IT EUR 22. Nov 1996
Number of employees
Current staff
Staff numbers
8,385
Steel Dynamics employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 00:42
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.