Steel Dynamics, Inc. [NASDAQ:STLD]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Steel Dynamics, Inc. [STLD], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give STLD an Outperform rating. Its stock price has been found in the range of 25.02 to 50.67. This is compared to its latest closing price of $26.63.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Steel Dynamics, Inc. [STLD] is sitting at 2.08. This is compared to 1 month ago, when its average rating was 1.86.
For the quarter ending in Mar-19 Steel Dynamics, Inc. [STLD] generated $2.82 billion in sales. That’s 0.39% lower than the average estimate of $2.83 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Mon 22 Jul (In 39 Days).
Fundamental Analysis of Steel Dynamics, Inc. [STLD]
Now let’s turn to look at profitability: with a current Operating Margin for Steel Dynamics, Inc. [STLD] sitting at +14.38 and its Gross Margin at +19.22, this company’s Net Margin is now 10.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 28.44, and its Return on Invested Capital has reached 21.50%. Its Return on Equity is 34.54, and its Return on Assets is 17.29. These metrics all suggest that Steel Dynamics, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Steel Dynamics, Inc. [STLD] has generated a Total Debt to Total Equity ratio of 60.40. Similarly, its Total Debt to Total Capital is 37.66, while its Total Debt to Total Assets stands at 30.85. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 59.78, and its Long-Term Debt to Total Capital is 37.27. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 3.52 and its Total Debt to EBITDA Value is 1.18. The Enterprise Value to Sales for this firm is now 0.59, and its Total Debt to Enterprise Value stands at 0.29. Steel Dynamics, Inc. [STLD] has a Price to Book Ratio of 1.72, a Price to Cash Flow Ratio of 4.99 and P/E Ratio of 4.91. These metrics all suggest that Steel Dynamics, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Steel Dynamics, Inc. [STLD] earns $1,441,688 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 12.36 and its Total Asset Turnover is 1.62. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.13 and its Current Ratio is 3.96. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Steel Dynamics, Inc. [STLD] has 222.85M shares outstanding, amounting to a total market cap of $5.80B. Its stock price has been found in the range of 25.02 to 50.67. At its current price, it has moved by -48.63% from its 52-week high, and it has moved 4.02% from its 52-week low.
This stock’s Beta value is currently 1.47, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 32.57. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Steel Dynamics, Inc. [STLD] a Reliable Buy?
Shares of Steel Dynamics, Inc. [STLD], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.