Steel Dynamics Net Income vs. Return On Asset

STLD Stock  USD 134.36  0.93  0.69%   
Based on Steel Dynamics' profitability indicators, Steel Dynamics is yielding more profit at the present time then in previous quarter. It has a moderate likelihood of reporting better profitability numbers in January. Profitability indicators assess Steel Dynamics' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1995-03-31
Previous Quarter
428 M
Current Value
317.8 M
Quarterly Volatility
254.9 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Steel Dynamics' Sales General And Administrative To Revenue is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.20, whereas EV To Sales is forecasted to decline to 1.09. At present, Steel Dynamics' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 3.4 B, whereas Interest Income is forecasted to decline to about 110.1 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.210.2153
Fairly Down
Slightly volatile
For Steel Dynamics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Steel Dynamics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Steel Dynamics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Steel Dynamics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Steel Dynamics over time as well as its relative position and ranking within its peers.
  

Steel Dynamics' Revenue Breakdown by Earning Segment

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For information on how to trade Steel Stock refer to our How to Trade Steel Stock guide.
Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Steel Dynamics. If investors know Steel will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Steel Dynamics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.41)
Dividend Share
1.805
Earnings Share
11.12
Revenue Per Share
113.479
Quarterly Revenue Growth
(0.05)
The market value of Steel Dynamics is measured differently than its book value, which is the value of Steel that is recorded on the company's balance sheet. Investors also form their own opinion of Steel Dynamics' value that differs from its market value or its book value, called intrinsic value, which is Steel Dynamics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Steel Dynamics' market value can be influenced by many factors that don't directly affect Steel Dynamics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Steel Dynamics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Steel Dynamics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Steel Dynamics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Steel Dynamics Return On Asset vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Steel Dynamics's current stock value. Our valuation model uses many indicators to compare Steel Dynamics value to that of its competitors to determine the firm's financial worth.
Steel Dynamics is rated fourth in net income category among its peers. It is currently regarded as top stock in return on asset category among its peers . The ratio of Net Income to Return On Asset for Steel Dynamics is about  26,962,398,240 . At present, Steel Dynamics' Net Income is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Steel Dynamics by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Steel Return On Asset vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Steel Dynamics

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
2.45 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Steel Dynamics

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0909
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Steel Return On Asset Comparison

Steel Dynamics is currently under evaluation in return on asset category among its peers.

Steel Dynamics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Steel Dynamics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Steel Dynamics will eventually generate negative long term returns. The profitability progress is the general direction of Steel Dynamics' change in net profit over the period of time. It can combine multiple indicators of Steel Dynamics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income421 K442.1 K
Operating Income3.2 B3.3 B
Income Before Tax3.2 B3.4 B
Total Other Income Expense Net67.8 M71.2 M
Net Income2.5 B2.6 B
Income Tax Expense751.6 M789.2 M
Net Income Applicable To Common Shares4.4 B4.7 B
Net Income From Continuing Ops2.7 B2.8 B
Non Operating Income Net Other-31.3 M-29.8 M
Interest Income114.4 M110.1 M
Net Interest Income-85.5 M-89.8 M
Change To Netincome128.2 M148.1 M
Net Income Per Share 14.72  15.45 
Income Quality 1.44  0.84 
Net Income Per E B T 0.76  0.53 

Steel Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Steel Dynamics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Steel Dynamics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Steel Dynamics' important profitability drivers and their relationship over time.

Use Steel Dynamics in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Steel Dynamics position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Steel Dynamics will appreciate offsetting losses from the drop in the long position's value.

Steel Dynamics Pair Trading

Steel Dynamics Pair Trading Analysis

The ability to find closely correlated positions to Steel Dynamics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Steel Dynamics when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Steel Dynamics - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Steel Dynamics to buy it.
The correlation of Steel Dynamics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Steel Dynamics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Steel Dynamics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Steel Dynamics can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Steel Dynamics position

In addition to having Steel Dynamics in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Manufacturing Thematic Idea Now

Manufacturing
Manufacturing Theme
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Manufacturing Theme or any other thematic opportunities.
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When determining whether Steel Dynamics is a strong investment it is important to analyze Steel Dynamics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Steel Dynamics' future performance. For an informed investment choice regarding Steel Stock, refer to the following important reports:
Check out World Market Map.
For information on how to trade Steel Stock refer to our How to Trade Steel Stock guide.
You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
To fully project Steel Dynamics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Steel Dynamics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Steel Dynamics' income statement, its balance sheet, and the statement of cash flows.
Potential Steel Dynamics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Steel Dynamics investors may work on each financial statement separately, they are all related. The changes in Steel Dynamics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Steel Dynamics's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.