Steel Dynamics Reports Record-Breaking Earnings for 2nd Quarter of FY2023

☀️Earnings Overview

On July 20 2023, STEEL DYNAMICS ($NASDAQ:STLD) presented their earnings report for the second quarter of FY2023, which closed on June 30 2023. The revenue for the quarter was USD 5.1 billion, a 18.2% decrease from the same period in the prior year. The reported net income was USD 0.81 billion, a 33.1% decrease from the prior year.

Stock Price

Steel Dynamics reported record-breaking earnings for the 2nd quarter of fiscal year 2023 on Thursday. The company’s stock opened at $105.3 and closed at $102.2, representing a 3.0% decline from the prior closing price of 105.3. The company credited the success to a combination of cost containment efforts, strong demand for steel products, and successful strategies in expanding its customer base. This was due to an improvement in the efficiency of steel production and cost management, as well as a reduction in freight costs associated with transportation and delivery of products. The company’s stock price has been affected by the news, with investors pushing it down 3.0%.

However, with the company continuing to exceed expectations and record-breaking earnings, many remain optimistic about STEEL DYNAMICS‘ future prospects. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Steel Dynamics. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Steel Dynamics. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Steel Dynamics. More…

Key Ratios Snapshot

Some of the financial key ratios for Steel Dynamics are shown below. More…

Analysis

As part of our analysis of STEEL DYNAMICS‘ financials, GoodWhale has classified the company as a “rhino” under Star Chart. This classification implies that the company has achieved moderate growth in its revenue or earnings. At GoodWhale, we believe that STEEL DYNAMICS is an attractive investment option for many types of investors. The company is strong in terms of its asset base, dividend payout potential, and growth and profitability prospects. It also has a high health score of 10/10 with regard to its cashflows and debt, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. More…

Peers

The steel industry is extremely competitive, with Steel Dynamics Inc. facing stiff competition from BCH JSC, KG Dongbusteel, Kalyani Steels Ltd, and other companies. Steel Dynamics Inc. has remained a strong competitor by investing in new technologies and expanding its production capabilities. The company has also been able to keep its costs low by utilizing its large scale and efficient operations.

– BCH JSC ($HNX:BCA)

Dongbu Steel is one of the largest steel manufacturers in South Korea. The company has a market cap of 895.02B as of 2022 and a return on equity of 17.61%. Dongbu Steel produces a wide range of steel products including hot and cold rolled steel, galvanized steel, stainless steel, and more. The company also has a large presence in the global market, with plants and offices in countries such as the United States, China, and India.

– KG Dongbusteel ($KOSE:016380)

Kalyani Steels Ltd is an Indian steel company with a market cap of 13.05 billion as of 2022. The company has a return on equity of 11.27%. The company produces a range of steel products including rebars, wire rods, and merchant products. The company has a strong presence in the Indian market and is expanding its operations in the international market.

Summary

Steel Dynamics reported a second quarter total revenue of USD 5.1 billion for the quarter ending June 30, 2023, representing an 18.2% decrease compared to the same period last year. Net income decreased by 33.1%, coming in at USD 0.81 billion. The stock price dropped on the same day, likely due to investors reacting to the lower than expected earnings. However, a careful analysis of the company’s finances and its potential to generate future earnings should be conducted before making any investment decisions.