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How to buy Steel Dynamics stock | 36.91

Own Steel Dynamics stock in just a few minutes.

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Steel Dynamics, Inc is a steel business based in the US. Steel Dynamics shares (STLD) are listed on the NASDAQ and all prices are listed in US Dollars. Steel Dynamics employs 8,385 staff and has a trailing 12-month revenue of around USD$9.5 billion.

How to buy shares in Steel Dynamics

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Steel Dynamics. Find the stock by name or ticker symbol: STLD. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Steel Dynamics reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$36.91, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Steel Dynamics, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Steel Dynamics. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Steel Dynamics's share price?

Since the stock market crash in March caused by coronavirus, Steel Dynamics's share price has had significant positive movement.

Its last market close was USD$36.91, which is 19.56% up on its pre-crash value of USD$29.69 and 146.40% up on the lowest point reached during the March crash when the shares fell as low as USD$14.98.

If you had bought USD$1,000 worth of Steel Dynamics shares at the start of February 2020, those shares would have been worth USD$596.09 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,229.84.

Steel Dynamics share price

Use our graph to track the performance of STLD stocks over time.

Steel Dynamics shares at a glance

Information last updated 2020-10-14.
Latest market close USD$36.91
52-week range USD$14.98 - USD$35.7844
50-day moving average USD$30.1857
200-day moving average USD$27.0144
Wall St. target price USD$31.6
PE ratio 13.136
Dividend yield USD$1 (3.01%)
Earnings per share (TTM) USD$2.493

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Steel Dynamics stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Steel Dynamics price performance over time

Historical closes compared with the close of $36.91 from 2020-11-16

1 week (2020-11-15) N/A
1 month (2020-10-26) 17.74%
3 months (2020-08-22) N/A
6 months (2020-05-22) 51.08%
1 year (2019-11-22) 13.22%
2 years (2018-11-22) N/A
3 years (2017-11-22) -2.15%
5 years (2015-11-22) N/A

Is Steel Dynamics under- or over-valued?

Valuing Steel Dynamics stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Steel Dynamics's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Steel Dynamics's P/E ratio

Steel Dynamics's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 13x. In other words, Steel Dynamics shares trade at around 13x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Steel Dynamics's PEG ratio

Steel Dynamics's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 41.8194. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Steel Dynamics's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Steel Dynamics's EBITDA

Steel Dynamics's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$1.2 billion.

The EBITDA is a measure of a Steel Dynamics's overall financial performance and is widely used to measure a its profitability.

Steel Dynamics financials

Revenue TTM USD$9.5 billion
Operating margin TTM 8.83%
Gross profit TTM USD$1.5 billion
Return on assets TTM 6.45%
Return on equity TTM 13.34%
Profit margin 5.61%
Book value $19.705
Market capitalisation USD$6.9 billion

TTM: trailing 12 months

Shorting Steel Dynamics shares

There are currently 2.9 million Steel Dynamics shares held short by investors – that's known as Steel Dynamics's "short interest". This figure is 27.8% down from 4.1 million last month.

There are a few different ways that this level of interest in shorting Steel Dynamics shares can be evaluated.

Steel Dynamics's "short interest ratio" (SIR)

Steel Dynamics's "short interest ratio" (SIR) is the quantity of Steel Dynamics shares currently shorted divided by the average quantity of Steel Dynamics shares traded daily (recently around 1.9 million). Steel Dynamics's SIR currently stands at 1.52. In other words for every 100,000 Steel Dynamics shares traded daily on the market, roughly 1520 shares are currently held short.

However Steel Dynamics's short interest can also be evaluated against the total number of Steel Dynamics shares, or, against the total number of tradable Steel Dynamics shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Steel Dynamics's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Steel Dynamics shares in existence, roughly 10 shares are currently held short) or 0.0166% of the tradable shares (for every 100,000 tradable Steel Dynamics shares, roughly 17 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Steel Dynamics.

Find out more about how you can short Steel Dynamics stock.

Steel Dynamics's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Steel Dynamics.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Steel Dynamics's total ESG risk score

Total ESG risk: 39.48

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Steel Dynamics's overall score of 39.48 (as at 10/01/2020) is pretty weak – landing it in it in the 78th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Steel Dynamics is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Steel Dynamics's environmental score

Environmental score: 19.6/100

Steel Dynamics's environmental score of 19.6 puts it squarely in the 9th percentile of companies rated in the same sector. This could suggest that Steel Dynamics is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Steel Dynamics's social score

Social score: 22.22/100

Steel Dynamics's social score of 22.22 puts it squarely in the 9th percentile of companies rated in the same sector. This could suggest that Steel Dynamics is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Steel Dynamics's governance score

Governance score: 12.66/100

Steel Dynamics's governance score puts it squarely in the 9th percentile of companies rated in the same sector. That could suggest that Steel Dynamics is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Steel Dynamics's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Steel Dynamics scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Steel Dynamics has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Steel Dynamics, Inc was last rated for ESG on: 2020-10-01.

Total ESG score 39.48
Total ESG percentile 78.04
Environmental score 19.6
Environmental score percentile 9
Social score 22.22
Social score percentile 9
Governance score 12.66
Governance score percentile 9
Level of controversy 2

Steel Dynamics share dividends

37%

Dividend payout ratio: 37.22% of net profits

Recently Steel Dynamics has paid out, on average, around 37.22% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.01% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Steel Dynamics shareholders could enjoy a 3.01% return on their shares, in the form of dividend payments. In Steel Dynamics's case, that would currently equate to about $1 per share.

While Steel Dynamics's payout ratio might seem fairly standard, it's worth remembering that Steel Dynamics may be investing much of the rest of its net profits in future growth.

Steel Dynamics's most recent dividend payout was on 16 October 2020. The latest dividend was paid out to all shareholders who bought their shares by 29 September 2020 (the "ex-dividend date").

Have Steel Dynamics's shares ever split?

Steel Dynamics's shares were split on a 2:1 basis on 31 March 2008. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Steel Dynamics shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Steel Dynamics shares which in turn could have impacted Steel Dynamics's share price.

Steel Dynamics share price volatility

Over the last 12 months, Steel Dynamics's shares have ranged in value from as little as $14.98 up to $35.7844. A popular way to gauge a stock's volatility is its "beta".

STLD.US volatility(beta: 1.43)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Steel Dynamics's is 1.4324. This would suggest that Steel Dynamics's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Steel Dynamics overview

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; and merchant-bar-quality products, including rounds, angles, flats, reinforcing bars, and channels and specialty steel sections. This segment is also involved in the turning, polishing, straightening, chamfering, threading, precision saw-cutting, cold drawing, and heat treating of bar products; and cutting to length, straightening, hole punching, shot blasting, welding, and coating of beams, channels, and specialty steel sections. Its products are used in construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube industry sectors. This segment sells its products directly to end-users, steel fabricators, and service centers. The Metals Recycling Operations segment engages in the purchase, process, and resale of ferrous and nonferrous scrap metals into reusable forms and grades. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. This segment also provides transportation logistics, marketing, brokerage, and scrap management services. The Steel Fabrication Operations segment produces steel building components comprising steel joists, girders, trusses, and steel deck products for non-residential steel fabricators. The company also exports its products. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.

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