Steel Dynamics Stock Analysis, Valuation (NASDAQ:STLD)
Watch the robo advisor video of Steel Dynamics stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for STLD stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Steel Dynamics, Inc. Stock Rating 3.9/5
Amigobulls STLD stock analysis relies on business fundamentals such as Steel Dynamics revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Steel Dynamics valuation forms a crucial part of our stock analysis. Steel Dynamics stock rating is our opinion about the business fundamentals of the company.
Should you buy STLD stock?
- Steel Dynamics sales grew by 29.3% year on year in 2018-06.
- Revenue growth has been tremendous with a compounded annual growth of 8.4 over the last 5 years.
- Steel Dynamics had a healthy average operating margin of 12.34 over the last 4 quarters.
- Net margins came in at average 10% for Steel Dynamics over the last twelve months.
- STLD stock is trading at an earnings multiple of 11.8 which is better than the sector average of 17.4.
- STLD stock is trading at a favorable price to sales multiple of 1 as against the Basic Materials sector average multiple of 1.3.
- Steel Dynamics has an attractive ROIC (Return on Invested Capital) of 24.3
- Steel Dynamics has a good Return On Equity (ROE) of 32.8.
- Steel Dynamics has a healthy FCF (Free Cash Flow) margin of 8.8.
Amigobulls Steel Dynamics stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
While doing a study of the company financials, Steel Dynamics revenue growth and profit or net income are two main metrics which help in identifying whether STLD stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about STLD stock.