Home Sectors Basic Materials Up or Down: Steel Dynamics (NASDAQ: STLD)

Up or Down: Steel Dynamics (NASDAQ: STLD)

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Steel Dynamics is in the basic materials sector and trades as part of the steel industry. The company CEO is Mark D. Millett. Steel Dynamics Inc is a steel producers and metal recycler in the United States. The company produces steel sheet products, long products and steel finishing products. It also operates metals recycling and steel fabrication business.

Previous Intraday Trading Performance:

The STLD stock showed a previous change of 1.11% with an open at 26.64 and a close of 26.50. It reached an intraday high of 26.92 and a low of 26.27.

SeekingAlpha:  U.S. Steel cut to Sell at Goldman Sachs

Liquidity:

The stock has a market cap of $5.9b with 222.2m shares outstanding, of which the float is 208.1m shares. Trading volume reached 3,413,916 shares compared to its average volume of 2,475,441 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Steel Dynamics shares returned -0.82% and in the past 30 trading days it returned -19.26%. Over three months, it changed -29.72%. In one year it has changed -45.63% and within that year its 52-week high was 51.32 and its 52-week low was 25.03. STLD stock is 5.89% above its 52 Week Low.

Our calculations show a 200 day moving average of 36.71 and a 50 day moving average of 31.92. Currently STLD stock is trading -27.82% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  U.S. Steel cut to Sell at Goldman Sachs

Earnings:

The last annual fiscal EPS for the company was reported at 5.36 that ended on 31st of December 2018, which according to the previous close, that is a PE of 4.94. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.91. The TTM EPS is 5.49, which comes to a TTM PE of 4.83.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/22/2019): 0.91
4thQtr of 2018 (Reported on 01/22/2019): 1.17
3rdQtr of 2018 (Reported on 10/17/2018): 1.69
2ndQtr of 2018 (Reported on 07/23/2018): 1.53
1stQtr of 2018 (Reported on 04/18/2018): 0.96

The dividend per share is currently 0.96, which is a dividend yield of 3.62%. Also, the payout ratio is 17.49%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 38.67, which means it is possibly undervalued and has a margin of safety of 31.46%.

Indicators to Watch:

The current calculated beta is 1.47.

SeekingAlpha:  Douglas Emmett reports Q1 results

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 34.46%, return on assets is 17.39%, profit margin is 10.33%, price-to-sales is 0.48 and price-to-book is 1.45.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 5  :Past Performance Score
 5  :Financial Strength Score
 0  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.