July 11, 2025 a 03:31 am
STLD: Dividend Analysis - Steel Dynamics, Inc.
Steel Dynamics, Inc. presents a compelling dividend profile with a notable history of steady payments and a growing dividend yield. Key metrics such as dividend growth and payout ratios showcase the company's robust financial management, making it an attractive option for income-focused investors.
📊 Overview
Steel Dynamics is a prominent player in the Basic Materials sector with a substantial market cap of USD 20.39 billion.
| Parameter | Details |
|---|---|
| Sector | Basic Materials |
| Dividend Yield | 1.50% |
| Current Dividend per Share | 1.82 USD |
| Dividend History | 22 years |
| Last Cut or Suspension | None |
📈 Dividend History
Steel Dynamics boasts a commendable dividend history that spans over two decades, highlighting its commitment to returning capital to shareholders.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | $1.00 |
| 2024 | $1.84 |
| 2023 | $1.70 |
| 2022 | $1.36 |
| 2021 | $1.04 |
📈 Dividend Growth
The company's ability to grow its dividends over time is a testament to its operational excellence and financial resilience. It has seen growth in its dividend payout over the last 3 and 5 years, respectively.
| Time | Growth |
|---|---|
| 3 years | 21.0% |
| 5 years | 13.9% |
The average dividend growth is 13.9% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio indicators provide a snapshot of the company's dividend sustainability concerning its earnings and cash flows.
| Key Figure Ratio | Value |
|---|---|
| EPS-based | 23.35% |
| Free Cash Flow-based | -171.60% |
The EPS payout ratio of 23.35% suggests a healthy buffer for dividends, although a negative FCF ratio indicates potential volatility in cash-based sustainability.
✅ Cashflow & Capital Efficiency
Cashflow metrics are vital as they indicate the company's efficiency in generating cash and using capital effectively.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -0.13% | 9.47% | 19.82% |
| Earnings Yield | 8.67% | 12.46% | 21.56% |
| CAPEX to Operating Cash Flow | 1.01% | 0.47% | 0.20% |
| Stock-based Compensation to Revenue | 0.38% | 0.33% | 0.27% |
| Free Cash Flow / Operating Cash Flow Ratio | -1.27% | 52.90% | 79.62% |
The data displays a solid ROIC, despite variances in FCF yield. The figures portray a company that, while showing fluctuations, maintains a strong cash and capital structure.
🔍 Balance Sheet & Leverage Analysis
A thorough balance sheet assessment provides insights into financial stability, liquidity, and debt management.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 36.16% | 36.08% | 37.77% |
| Debt-to-Assets | 21.63% | 21.45% | 21.68% |
| Debt-to-Capital | 26.56% | 26.51% | 27.41% |
| Net Debt to EBITDA | 1.05 | 0.48 | 0.26 |
| Current Ratio | 2.74 | 2.91 | 3.76 |
| Quick Ratio | 1.08 | 1.67 | 2.22 |
| Financial Leverage | 1.67 | 1.68 | 1.74 |
The balance sheet highlights stable leverage metrics with a declining trend in net debt to EBITDA ratios, indicating robust financial health.
📈 Fundamental Strength & Profitability
This section outlines key measures of profitability and asset utilization ratios critical to understanding earnings quality.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.20% | 27.64% | 47.51% |
| Return on Assets | 10.29% | 16.44% | 27.28% |
| Net Margin | 8.76% | 13.04% | 17.35% |
| EBIT Margin | 11.63% | 17.53% | 22.97% |
| EBITDA Margin | 14.36% | 19.86% | 24.69% |
| Gross Margin | 15.98% | 21.53% | 27.48% |
| R&D to Revenue | 0% | 0% | 0% |
The high ROE and improving net margins affirm the company's efficiency in generating substantial returns on equity and profitable operations.
📈 Price Development
🗣️ Dividend Scoring System
| Criteria | Score | Visual Score |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 5 |
Total Score: 34/40
✅ Rating
Steel Dynamics, Inc. is highly recommended for its robust dividend history, stable financial metrics, and strong balance sheet quality. It offers a promising dividend growth trajectory, making it a commendable choice for long-term dividend investors.