ScoreWhy is Steel Dynamics, Inc. ?
1
High Management Efficiency with a high ROCE of 33.62%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.72 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 13.61% and Operating profit at 10.73%
4
The company has declared Negative results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at USD 1,449.53 MM
- DEBT-EQUITY RATIO (HY) Highest at 38.42 %
- INTEREST COVERAGE RATIO(Q) Lowest at 1,693.42
5
With ROCE of 11.90%, it has a fair valuation with a 3.25 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 29.00%, its profits have fallen by -23.4%
6
High Institutional Holdings at 84.2%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating Performance
- The stock has generated a return of 29.00% in the last 1 year, much higher than market (S&P 500) returns of 14.90%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Steel Dynamics, Inc. should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Steel Dynamics, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Steel Dynamics, Inc.
29.0%
0.86
37.88%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.61%
EBIT Growth (5y)
10.73%
EBIT to Interest (avg)
44.89
Debt to EBITDA (avg)
0.72
Net Debt to Equity (avg)
0.34
Sales to Capital Employed (avg)
1.45
Tax Ratio
21.21%
Dividend Payout Ratio
25.03%
Pledged Shares
0
Institutional Holding
84.20%
ROCE (avg)
33.62%
ROE (avg)
31.13%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
4.12
EV to EBIT
27.33
EV to EBITDA
19.90
EV to Capital Employed
3.25
EV to Sales
2.22
PEG Ratio
NA
Dividend Yield
1.83%
ROCE (Latest)
11.90%
ROE (Latest)
13.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 11.73
RAW MATERIAL COST(Y)
Fallen by -11.65% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 11.73 times
-14What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,449.53 MM
DEBT-EQUITY RATIO
(HY)
Highest at 38.42 %
INTEREST COVERAGE RATIO(Q)
Lowest at 1,693.42
CASH AND EQV(HY)
Lowest at USD 1,540.23 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.62 times
INTEREST(Q)
Highest at USD 26.96 MM
Here's what is working for Steel Dynamics, Inc.
Dividend per share
Highest at USD 11.73 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debtors Turnover Ratio
Highest at 11.73 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -11.65% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 146.28 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Steel Dynamics, Inc.
Operating Cash Flow
Lowest at USD 1,449.53 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
At USD 26.96 MM has Grown at 98.61%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,693.42
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 38.42 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at USD 26.96 MM
in the last five periods and Increased by 98.61% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 1,540.23 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 4.62 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Non Operating Income
Highest at USD 0.09 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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