Steel Dynamics (STLD) - 15.52% Below 52-Week High: Buy or Wait?

Stock Details

Steel Dynamics Inc (STLD), a prominent company in the basic materials sector within the steel industry, is based in USA and primarily trades on the NASDAQ.Currently, the stock is trading at $243.93. Over the past 52 weeks, it has ranged between $118.74 and $288.74. This places the current price at 84.5% of its 52-week high and 105.4% above its 52-week low. Recent trading volume was recorded at 64,965. The International Securities Identification Number (ISIN) for this stock is US8581191009.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

26.79

Above market average

Forward P/E

15.55

Earnings expected to grow

PEG Ratio

10.91

Potentially overvalued

Price to Book

3.93

EV/EBITDA

16.57

EPS (TTM)

$9.33

Price to Sales

1.90

Beta

1.52

More volatile than market

Q:How is STLD valued relative to its earnings and growth?

Steel Dynamics Inc trades at a P/E ratio of 26.79, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 15.55 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 10.91 indicates a premium valuation even accounting for growth.

Q:What is STLD's risk profile compared to the market?

With a beta of 1.52, Steel Dynamics Inc is significantly more volatile than the market. For every 10% market move, this stock tends to move 15% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 3.93 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

7.22%

Operating Margin

10.30%

EBITDA

$2.32B

Return on Equity

15.20%

Return on Assets

6.66%

Revenue Growth (YoY)

19.10%

Earnings Growth (YoY)

93.10%

Q:How profitable and efficient is STLD's business model?

Steel Dynamics Inc achieves a profit margin of 7.22%, meaning it retains $7.22 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 10.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 15.20% and ROA at 6.66%, the company generates strong returns on invested capital.

Q:What are STLD's recent growth trends?

Steel Dynamics Inc's revenue grew by 19.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 93.10% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against STEEL industry averages for proper context.

Dividend Information

Dividend Per Share

$2.03

Dividend Yield

0.75%

Ex-Dividend Date

Jun 30, 2026

Dividend Date

Jul 10, 2026

Q:What dividend income can investors expect from STLD?

Steel Dynamics Inc offers a dividend yield of 0.75%, paying $2.03 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Jun 30, 2026.

Q:How reliable is STLD's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Steel Dynamics Inc pays $2.03 per share in dividends against earnings of $9.33 per share, resulting in a payout ratio of 21.76%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Jul 10, 2026.

Company Size & Market

Market Cap

$36.0B

Revenue (TTM)

$19.01B

Revenue/Share (TTM)

$129.83

Shares Outstanding

144.21M

Book Value/Share

$61.80

Asset Type

Common Stock

Q:What is STLD's market capitalization and position?

Steel Dynamics Inc has a market capitalization of $36.0B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 144.21M shares outstanding, the company's ownership is relatively concentrated. As a participant in the STEEL industry, it competes with other firms in this sector.

Q:How does STLD's price compare to its book value?

Steel Dynamics Inc's book value per share is $61.80, while the current stock price is $243.93, resulting in a price-to-book (P/B) ratio of 3.95. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$268.18

9.94% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for STLD?

12 analysts cover STLD with 67% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $268.18 implies 9.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on STLD?

Current analyst recommendations:2 Strong Buy, 6 Buy, 3 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jun 21, 2026, 02:47 AM

Steel Dynamics Inc (STLD) Stock