Is it time to Buy before this week’s earning report Steel Dynamics (NASDAQ:STLD)

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Earnings results for Steel Dynamics (NASDAQ:STLD)

Steel Dynamics, Inc. is expected* to report earnings on 10/19/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 5 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.47. The reported EPS for the same quarter last year was $0.69.

Steel Dynamics last issued its quarterly earnings results on July 20th, 2020. The basic materials company reported $0.47 EPS for the quarter, beating the consensus estimate of $0.41 by $0.06. The firm earned $2.09 billion during the quarter, compared to analyst estimates of $2.06 billion. Its revenue was down 24.4% on a year-over-year basis. Steel Dynamics has generated $3.10 earnings per share over the last year and currently has a price-to-earnings ratio of 13.4. Steel Dynamics has confirmed that its next quarterly earnings report will be published on Monday, October 19th, 2020.

Analyst Opinion on Steel Dynamics (NASDAQ:STLD)

10 Wall Street analysts have issued ratings and price targets for Steel Dynamics in the last 12 months. Their average twelve-month price target is $31.00, predicting that the stock has a possible downside of 7.16%. The high price target for STLD is $40.00 and the low price target for STLD is $23.00. There are currently 1 sell rating, 2 hold ratings and 7 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Steel Dynamics has received a consensus rating of Buy. The company’s average rating score is 2.60, and is based on 7 buy ratings, 2 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $31.00, Steel Dynamics has a forecasted downside of 7.2% from its current price of $33.39. Steel Dynamics has only been the subject of 4 research reports in the past 90 days.

Dividend Strength: Steel Dynamics (NASDAQ:STLD)

Steel Dynamics pays a meaningful dividend of 2.99%, higher than the bottom 25% of all stocks that pay dividends. Steel Dynamics has been increasing its dividend for 7 years. The dividend payout ratio of Steel Dynamics is 32.26%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Steel Dynamics will have a dividend payout ratio of 46.51% next year. This indicates that Steel Dynamics will be able to sustain or increase its dividend.

Insiders buying/selling: Steel Dynamics (NASDAQ:STLD)

In the past three months, Steel Dynamics insiders have not sold or bought any company stock. Only 5.00% of the stock of Steel Dynamics is held by insiders. 81.42% of the stock of Steel Dynamics is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Steel Dynamics (NASDAQ:STLD

Earnings for Steel Dynamics are expected to grow by 0.47% in the coming year, from $2.14 to $2.15 per share. The P/E ratio of Steel Dynamics is 13.41, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 19.76. The P/E ratio of Steel Dynamics is 13.41, which means that it is trading at a less expensive P/E ratio than the Basic Materials sector average P/E ratio of about 37.78. Steel Dynamics has a PEG Ratio of 1.14. PEG Ratios above 1 indicate that a company could be overvalued. Steel Dynamics has a P/B Ratio of 1.83. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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