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STLD STOCK WRITE UP


STLD (STEEL DYNAMICS INC)

  • P/E: 17
  • GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH: $.56
  • SECTOR: NON-ENERGY MINERALS
  • ASSETS-LIABILITIES: 1.81
  • DIVIDEND: 1.7%

STLD is a company endeavoring in the production of steel. They are listed on the Nasdaq, and beat Wall Street expectations by 11% when they last report. The company will announce Q2 2017 earnings after market close 7/19/17.
On a year-over-year basis, STLD increased its sales by 35%. Cost of goods increased only 27%, and income tax expense nearly tripled. With the exception of nickel, all steel raw resources have increased in price over the past year. Profit sharing rose by a similar margin as income tax expense. Net income increased by 27%, and the amount of shares was decreased minimally. Steel Dynamics has less than half of the value of its long-term debt in cash. Inventories increased only 6%. The company has commodity futures contracts shorting aluminum and copper.
STLD has risen 2.6% year-to-date. The company reported 10/19/16, missing Wall Street EPS expectations by about 5%, and rose about 60% between 10/2016 and 12/2016. Since it last reported 4/19/17 and beat Wall Street EPS expectations by 11%, share prices have also risen about 11%. STLD trades at a comparable price-to-earnings multiple as NUE (Nucor), another steel company. STLD and NUE saw peak revenues in 2014, and STLD increased revenues in 2016 over 2015, while NUE's revenue declined during the same period.
Mark Millett, who co-founded the company in 1993, still serves as President and CEO. Previously, he and the other founders were executives at Nucor. The last large insider purchase was made in 11/2016. Institutional ownership and mutual funds hold 92% of the company's shares, according to CNN.
STLD has risen after missing Wall Street expectations of EPS, and after beating expectations. The company reports next on 7/19/17 after market close. The company has seen its share price rise 2.6% while NUE, its closest competitor, has fallen less than 1% during the same interval.

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