Steel Dynamics, Inc. (STLD)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns through a full cycle, and Steel Dynamics has real attractions. It is a U.S. steel producer and metal recycler with steel, recycling, fabrication, and aluminum operations. In fiscal Q2 2026, the quarter ended 2026-06-30, it earned $534.1M, or $3.69 per diluted share, on $6.1B of revenue. In fiscal Q2 2025, the quarter ended 2025-06-30, it earned $298.7M, or $2.01 per diluted share, on $4.6B of revenue. That is strong recent growth. FairStock's return measures also look decent: ROE 17.57%, ROCE 7.87%, Piotroski F-score 8/9, Altman Z-score 4.87, and debt/equity 0.47. But steel is a cyclical commodity business, as the Lynch category says: earnings follow the economic cycle. The filed annual record proves it: FY2023 net income was $2.5B and diluted EPS $14.64; FY2024 net income was $1.5B and EPS $9.84; FY2025 net income was $1.2B and EPS $7.99. So current strength may not last. Valuation is where caution wins. At the 2026-10-13 close of $240.63, FairStock calculates P/E 21.86, P/B 3.67, FCF yield 2.8%, Graham Number $127.47, and margin of safety -88.77%. The PEG of 0.28 looks cheap only if rapid growth persists, a big if for a cyclical. I see a good operator, but the price already reflects prosperity; the margin of safety is thin.

In plain English: Steel Dynamics makes and recycles steel in the United States, with steel, recycling, fabrication, and aluminum operations. In its fiscal Q2 2026, the quarter ended 2026-06-30, it earned $534.1 million, up from $298.7 million in fiscal Q2 2025, the quarter ended 2025-06-30, so the business is doing much better than a year ago. At the October 13, 2026 close of $240.63, the price looks expensive against the company's net assets and profits, and steel profits can swing with the economy.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer