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Is this Large Market Cap Stock target price reasonable for Steel Dynamics Inc. (NASDAQ:STLD)?

The company in question is, Steel Dynamics Inc. (NASDAQ:STLD) currently with a stock price of 23.79 (0.30% today). The market cap for Steel Dynamics Inc. is 5786.73, and is in the sector Basic Materials, and Steel & Iron industry. The target price for Steel Dynamics Inc. is 30.21. Currently Steel Dynamics Inc. is trading with a P/E of 593, and a forward P/E of 11.35. Average volume for Steel Dynamics Inc. is 2804.22 and so far today it is 750480.

Performance in the last year for Steel Dynamics Inc. has been 27.07%. For EPS growth, Steel Dynamics Inc. has seen a growth of -180.80%, and is looking to grow in the next year to 2.80%. More long term stats show that EPS growth has been -23.20% over the last five years and could be 52.63% for the next five years. Steel Dynamics Inc. has seen sales growth quarter over quarter at 0.90%, with EPS growth quarter over quarter at 346.50%. The 20-day simple moving average is -3.67%, with the 200-day simple moving average coming to 4.46%.

Since the IPO date for Steel Dynamics Inc. on the 11/22/1996, Steel Dynamics Inc. has seen performance year to date to be 35.13%. With Steel Dynamics Inc. trading at 23.79, the dividend yield is 2.36%, and the EPS is 0.04.

So could Steel Dynamics Inc., be undervalued? Well as said before P/E is 593. The PEG is 11.27, P/S is 0.79 and the P/B is at 2.04. The P/cash is 5.5, with P/free cash flow at 8.44.

Steel Dynamics Inc. ability to deal with debt shows that the current ratio is 3.9, and the quick ratio is 2.4. This is with long term debt/equity at 0.91, and total debt/equity at 0.91.

In terms of margins, Steel Dynamics Inc. has a gross margin of 13.50%, an operating margin of 1.90% and a profit margin of 0.20%.Payout ratio for Steel Dynamics Inc. is *TBA. Return on assets come to 0.20% with return on investment coming to 0.50%.

Insider ownership for Steel Dynamics Inc., is at 4.00% and institutional ownership comes to 85.20%. Outstanding shares are at 243.96. While shares float is 233.41. The float short is currently 4.61%, and short ratio is 3.84.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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