Steel Dynamics Stock Fair Value Calculation – Steel Dynamics Reports Record-Breaking Non-GAAP Earnings Per Share of $4.01
April 20, 2023
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Steel Dynamics ($NASDAQ:STLD), Inc. (STLD) recently reported its record-breaking Non-GAAP Earnings Per Share of $4.01, exceeding expectations by $0.42. The company is a leading manufacturer and recycler of steel in North America and is listed on the NASDAQ Global Select Market. Despite the impressive non-GAAP earnings report, the company’s revenue of $4.89B fell short of forecasts by $60M. Steel Dynamics has an expansive network of recyclers that process scrap metals into steel.
In addition, they manufacture steel products including beams, angles, flats, bars, rounds, and more. These products are used in a variety of industries such as automotive, construction, heavy equipment and more. The company also provides customers with a range of services including metal recycling, metal forming and fabrication, and energy investments. The recent results are encouraging for investors as it shows the steel production and recycling business is strong and has potential for steady growth. Despite a slight dip in revenue from the forecasted numbers, Steel Dynamics is still doing well due to its efficient processes and technologically advanced operations. Overall, Steel Dynamics’ record-breaking non-GAAP EPS of $4.01 is an indication that the company is on a steady growth path and is poised to continue its success in the future.
Market Price
Despite this impressive performance, the company’s stock opened at $107.0 and closed at $106.2, down by 1.2% from its previous closing price of 107.5. This drop may be due to investors’ concern over the global market conditions and the pandemic’s effect on the steel industry. Nonetheless, STEEL DYNAMICS continues to deliver strong financial results through its focus on product diversification and cost containment initiatives. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Steel Dynamics. More…
| Total Revenues | Net Income | Net Margin |
| 22.26k | 3.86k | 17.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Steel Dynamics. More…
| Operations | Investing | Financing |
| 4.46k | -1.88k | -2.2k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Steel Dynamics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.16k | 6.06k | 47.01 |
Key Ratios Snapshot
Some of the financial key ratios for Steel Dynamics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.6% | 72.8% | 23.0% |
| FCF Margin | ROE | ROA |
| 16.0% | 39.7% | 22.6% |
Analysis – Steel Dynamics Stock Fair Value Calculation
At GoodWhale, we have conducted a detailed analysis of STEEL DYNAMICS’ fundamentals. Our proprietary Valuation Line calculated the fair value of STEEL DYNAMICS’ share to be approximately $96.5. However, currently STEEL DYNAMICS’ stock is trading at a price of $106.2, which is overvalued by 10.0%. More…
Peers
The steel industry is extremely competitive, with Steel Dynamics Inc. facing stiff competition from BCH JSC, KG Dongbusteel, Kalyani Steels Ltd, and other companies. Steel Dynamics Inc. has remained a strong competitor by investing in new technologies and expanding its production capabilities. The company has also been able to keep its costs low by utilizing its large scale and efficient operations.
– BCH JSC ($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
Despite the lower than expected revenue, the company’s strong earnings growth indicates that the stock may be worth considering as an investment option. For investors looking to invest in Steel Dynamics, it is important to research the company in detail and understand their financial statements to make an informed decision. Additionally, taking into account the company’s competitive landscape and industry trends can also help inform investment decisions.
