Steel Dynamics Inc.


SKU: STLD Category:


Steel Dynamics had a strong quarter, generating sales, earnings, and cash flow above market expectations. Sinton is demonstrating considerable operating improvement and has a clear path to profitability in the second quarter of 2023. Its New Millennium Building Systems platform delivered good steel fabrication earnings. Their new aluminum group is investing in flat-rolled aluminum with excellent success. Operating income from their steel business reached $3.1 billion. Despite lower average selling prices, their metal recycling activities’ operating income for the fourth quarter climbed to $14 million due to higher volume and metal spread expansion. While metal spreads continue to widen due to stable product pricing and decreased steel input costs, steel fabrication businesses had a solid quarterly operating income of $682 million. They also disclosed Columbus, Mississippi, as the location of their aluminum rolling facility. In addition, they established a joint venture with Aymium, a top manufacturer of renewable biocarbon products. On the other hand, they are moving forward intending to have a positive impact on their sustainability and carbon reduction strategy. We give Steel Dynamics a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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