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 Steel Works Etc 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 Sell
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | 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 85.0% of the company shares are owned by institutional investors. The book value of Steel Dynamics was at this time reported as 59.34. The company recorded earning per share (EPS) of 11.42. 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:
| Over 85.0% of the company shares are owned by institutional investors | |
| On 11th of October 2024 Steel Dynamics paid $ 0.46 per share dividend to its current shareholders |
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 |
Steel Dynamics' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 21.93 B.Steel Dynamics' profitablity analysis
The company has Profit Margin (PM) of 0.1 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.09 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.09.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.
Basic technical analysis of Steel Stock
As of the 21st of November, Steel Dynamics has the Coefficient Of Variation of 827.85, risk adjusted performance of 0.0981, and Semi Deviation of 1.69. 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 variance, as well as the relationship between the maximum drawdown and semi variance to decide if Steel Dynamics is priced more or less accurately, providing market reflects its prevalent price of 144.04 per share. Given that Steel Dynamics has jensen alpha of 0.3164, 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 | 0.0981 | |||
| Market Risk Adjusted Performance | (1.73) | |||
| Mean Deviation | 1.74 | |||
| Semi Deviation | 1.69 | |||
| Downside Deviation | 1.87 | |||
| Coefficient Of Variation | 827.85 | |||
| Standard Deviation | 2.58 | |||
| Variance | 6.65 | |||
| Information Ratio | 0.0838 | |||
| Jensen Alpha | 0.3164 | |||
| Total Risk Alpha | 0.0091 | |||
| Sortino Ratio | 0.1156 | |||
| Treynor Ratio | (1.74) | |||
| Maximum Drawdown | 17.89 | |||
| Value At Risk | (2.79) | |||
| Potential Upside | 4.0 | |||
| Downside Variance | 3.49 | |||
| Semi Variance | 2.86 | |||
| Expected Short fall | (2.10) | |||
| Skewness | 2.22 | |||
| Kurtosis | 10.8 |
| Risk Adjusted Performance | 0.0981 | |||
| Market Risk Adjusted Performance | (1.73) | |||
| Mean Deviation | 1.74 | |||
| Semi Deviation | 1.69 | |||
| Downside Deviation | 1.87 | |||
| Coefficient Of Variation | 827.85 | |||
| Standard Deviation | 2.58 | |||
| Variance | 6.65 | |||
| Information Ratio | 0.0838 | |||
| Jensen Alpha | 0.3164 | |||
| Total Risk Alpha | 0.0091 | |||
| Sortino Ratio | 0.1156 | |||
| Treynor Ratio | (1.74) | |||
| Maximum Drawdown | 17.89 | |||
| Value At Risk | (2.79) | |||
| Potential Upside | 4.0 | |||
| Downside Variance | 3.49 | |||
| Semi Variance | 2.86 | |||
| Expected Short fall | (2.10) | |||
| Skewness | 2.22 | |||
| Kurtosis | 10.8 |
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 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Is Steel Works Etc 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.
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.