📊 STLD Key Takeaways
Is Steel Dynamics Inc. (STLD) a Good Investment?
Steel Dynamics maintains a fortress balance sheet with exceptional liquidity and debt management, but earnings growth has stalled despite 3.6% revenue growth, with net income flat and EPS declining 18.8%. The low free cash flow margin (2.8%) and lack of operating leverage suggest structural challenges in the cyclical steel industry.
Why Buy Steel Dynamics Inc. Stock? STLD Key Strengths
- Fortress balance sheet with 0.47x Debt/Equity and 3.06x current ratio providing substantial financial flexibility
- Exceptional interest coverage of 123.2x indicates very safe debt position with minimal refinancing risk
- Strong operating cash flow of $1.4B demonstrates underlying business fundamentals despite profitability headwinds
STLD Stock Risks: Steel Dynamics Inc. Investment Risks
- Earnings declining despite revenue growth - EPS down 18.8% YoY signaling margin compression and lack of operating leverage
- Critically low free cash flow margin of 2.8% limits financial flexibility, dividend capacity, and growth investment ability
- Cyclical steel industry exposure with compressed gross margins (13.2%) vulnerable to demand destruction and commodity price weakness
Key Metrics to Watch
- Gross margin trend and pricing power - watch for further compression indicating demand/competitive pressure
- Free cash flow conversion rate and absolute FCF generation - must improve to justify capital intensity
- Net income growth relative to revenue - must return to positive earnings growth for investment thesis validation
Steel Dynamics Inc. (STLD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.8% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.06x current ratio provides a solid financial cushion.
STLD Profit Margin, ROE & Profitability Analysis
STLD vs Materials Sector: How Steel Dynamics Inc. Compares
How Steel Dynamics Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Steel Dynamics Inc. Stock Overvalued? STLD Valuation Analysis 2026
Based on fundamental analysis, Steel Dynamics Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Steel Dynamics Inc. Balance Sheet: STLD Debt, Cash & Liquidity
STLD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Steel Dynamics Inc.'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $14.64 reflects profitable operations.
STLD Revenue Growth, EPS Growth & YoY Performance
STLD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.3B | $317.8M | $2.05 |
| Q2 2025 | $4.6B | $298.7M | $2.01 |
| Q1 2025 | $4.4B | $217.2M | $1.44 |
| Q3 2024 | $4.3B | $317.8M | $2.05 |
| Q2 2024 | $4.6B | $428.0M | $2.72 |
| Q1 2024 | $4.7B | $584.0M | $3.67 |
| Q1 2023 | $4.7B | N/A | $3.70 |
| Q3 2022 | $5.1B | N/A | $4.85 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Steel Dynamics Inc. Dividends, Buybacks & Capital Allocation
STLD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Steel Dynamics Inc. (CIK: 0001022671)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STLD
What is the AI rating for STLD?
Steel Dynamics Inc. (STLD) has an AI rating of HOLD with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STLD's key strengths?
Claude: Fortress balance sheet with 0.47x Debt/Equity and 3.06x current ratio providing substantial financial flexibility. Exceptional interest coverage of 123.2x indicates very safe debt position with minimal refinancing risk.
What are the risks of investing in STLD?
Claude: Earnings declining despite revenue growth - EPS down 18.8% YoY signaling margin compression and lack of operating leverage. Critically low free cash flow margin of 2.8% limits financial flexibility, dividend capacity, and growth investment ability.
What is STLD's revenue and growth?
Steel Dynamics Inc. reported revenue of $18.2B.
Does STLD pay dividends?
Steel Dynamics Inc. pays dividends, with $291.2M distributed to shareholders in the trailing twelve months.
Where can I find STLD SEC filings?
Official SEC filings for Steel Dynamics Inc. (CIK: 0001022671) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STLD's EPS?
Steel Dynamics Inc. has a diluted EPS of $7.99.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is STLD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Steel Dynamics Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is STLD stock overvalued or undervalued?
Valuation metrics for STLD: ROE of 13.2% (sector avg: 14%), net margin of 6.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy STLD stock in 2026?
Our dual AI analysis gives Steel Dynamics Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STLD's free cash flow?
Steel Dynamics Inc.'s operating cash flow is $1.4B, with capital expenditures of $948.0M. FCF margin is 2.8%.
How does STLD compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.5% (avg: 10%), ROE 13.2% (avg: 14%), current ratio 3.06 (avg: 1.6).