📊 STLD Key Takeaways
Is Steel Dynamics Inc. (STLD) a Good Investment?
Steel Dynamics exhibits deteriorating operational performance with flat net income despite 3.6% revenue growth and a significant 18.8% YoY EPS decline, indicating margin compression. The company's critically weak free cash flow of $10.3M (0.2% FCF margin) despite $148.3M operating cash flow reveals capital intensity constraints that limit shareholder value creation. Low profitability margins (7.8% net, 10.3% operating) and weak returns on capital (ROE 4.4%, ROA 2.4%) reflect structural challenges in the cyclical steel industry that are inadequately offset by its otherwise conservative balance sheet.
Steel Dynamics Inc. Key Strengths (STLD)
- Conservative capital structure with debt-to-equity ratio of 0.46x and exceptional interest coverage of 44.9x provides financial flexibility and resilience
- Strong liquidity position with current ratio of 3.13x and quick ratio of 1.33x ensures no near-term solvency risk
- Maintains revenue growth of 3.6% YoY demonstrating market presence despite cyclical industry headwinds
STLD Stock Risks: Steel Dynamics Inc. Investment Risks
- Profitability deteriorating with EPS declining 18.8% YoY while net income flat - signals margin compression and operational inefficiency
- Free cash flow generation critically weak at $10.3M with 0.2% FCF margin, severely constraining dividend capacity and limiting ability to return capital to shareholders
- Structural headwinds from commodity steel industry: low margins (7.8% net), minimal returns on capital (ROE 4.4%, ROA 2.4%), and high capital expenditure requirements ($138M CapEx) that consume operating cash flow
Key Metrics to Watch
- Free cash flow trend and FCF margin - essential to determine whether capital intensity will permit meaningful cash generation
- Net profit margin and operating margin progression - early indicator of whether margin compression is stabilizing or accelerating
- EPS growth trajectory - clarify whether 18.8% YoY decline represents cyclical trough or structural deterioration
Steel Dynamics Inc. (STLD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.2% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.13x 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 |
|---|---|---|---|
| Q1 2026 | $4.4B | $217.2M | $1.44 |
| 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 |
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 grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STLD's key strengths?
Claude: Conservative capital structure with debt-to-equity ratio of 0.46x and exceptional interest coverage of 44.9x provides financial flexibility and resilience. Strong liquidity position with current ratio of 3.13x and quick ratio of 1.33x ensures no near-term solvency risk.
What are the risks of investing in STLD?
Claude: Profitability deteriorating with EPS declining 18.8% YoY while net income flat - signals margin compression and operational inefficiency. Free cash flow generation critically weak at $10.3M with 0.2% FCF margin, severely constraining dividend capacity and limiting ability to return capital to shareholders.
What is STLD's revenue and growth?
Steel Dynamics Inc. reported revenue of $5.2B.
Does STLD pay dividends?
Steel Dynamics Inc. pays dividends, with $72.5M 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 $2.78.
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 grade reflects both perspectives for balanced insights.
What is STLD's fundamental grade?
Based on our AI fundamental analysis in May 2026, Steel Dynamics Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is STLD stock overvalued or undervalued?
Valuation metrics for STLD: ROE of 4.4% (sector avg: 14%), net margin of 7.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is STLD's AI grade for 2026?
Our dual AI analysis gives Steel Dynamics Inc. a combined C grade 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 $148.3M, with capital expenditures of $138.0M. FCF margin is 0.2%.
How does STLD compare to other Materials stocks?
Vs Materials sector averages: Net margin 7.8% (avg: 10%), ROE 4.4% (avg: 14%), current ratio 3.13 (avg: 1.6).