Nucor Corp (NUE) stock analysis

P/E above its 5-year median

Nucor's P/E of 16.6 is above its own 5-year median of 8.3.

P/E below the industry

Nucor's P/E of 16.6 is below the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 17.9.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Nucor's price-to-book of 2.60 is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 1.75.

Trading above fair value

The share price of $261.39 is above our fair value estimate of $172.84.

Margin of safety under 20%

The price is 51.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -7.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -36.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 118% over the last twelve months, against a 5-year average of 19.3% a year.

Growing faster than the industry

Revenue grew 21.8% over the last twelve months; the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median is 9.8%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 17.3% over the last twelve months, against 11.4% a year earlier.

Return on equity over 15%

Return on equity was 16.5% over the last twelve months and averaged 28.6% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Nucor's return on equity of 16.5% is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 3.6%.

Earnings grew over 5 years

Net income grew 19.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.3% over the last twelve months, against a 5-year average of 12.4%.

Net margin above the industry

Nucor's net margin of 9.3% is above the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 4.0%.

Low debt

Debt is 31.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 49.5% five years ago to 31.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 75.0% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.46 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.02; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Nucor paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Nucor yields 0.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 14.3% of net income.

Covered by free cash flow

Dividends take 19.3% of free cash flow.