Steel Dynamics Inc. (STLD) Stock

Steel Dynamics Inc. trades at a P/E ratio of 17.24, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 13.07 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.

With a beta of 1.39, Steel Dynamics Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.21 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Steel Dynamics Inc. achieves a profit margin of 6.80%, meaning it retains $6.80 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 6.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 13.20% and ROA at 5.92%, the company achieves moderate returns on invested capital.

Steel Dynamics Inc.'s revenue declined by 6.90% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 60.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against STEEL WORKS, BLAST FURNACES & ROLLING MILLS (COKE OVENS) industry averages for proper context.

Steel Dynamics Inc. offers a dividend yield of 1.52%, paying $1.88 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 6/30/2025.

The dividend sustainability can be assessed through the payout ratio - Steel Dynamics Inc. pays $1.88 per share in dividends against earnings of $7.61 per share, resulting in a payout ratio of 24.70%. 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 7/11/2025.

Steel Dynamics Inc. has a market capitalization of $19.48B, 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 148.45M shares outstanding, the company's ownership is relatively concentrated. As a participant in the STEEL WORKS, BLAST FURNACES & ROLLING MILLS (COKE OVENS) industry, it competes with other firms in this sector.

Steel Dynamics Inc.'s book value per share is $59.08, while the current stock price is $134.25, resulting in a price-to-book (P/B) ratio of 2.27. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

14 analysts cover STLD with 71% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $147.37 implies 9.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 7 Buy, 4 Hold, 00The 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.

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