Is the business good?
How good a business is STLD?
Steel Dynamics, Inc. earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 3.5 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Steel median 6.4% · 12 months to Q2 2026
- Cash conversion
- 0.60×
Cash conversion · −0.10× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −2.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 8.8% |
| FY2021 | 23% |
| FY2022 | 23% |
| FY2023 | 17% |
| FY2024 | 11% |
| FY2025 | 8.1% |
Details›
- Gross margin12 months to Q2 2026
- 15%
- Operating margin12 months to Q2 2026
- 10%
- Net margin12 months to Q2 2026
- 7.8%
- Free cash flow margin
- 4.7%
- Revenue, trailing twelve months
- $20.5B
- Free cash flow, trailing twelve months
- $956M
- Net income, trailing twelve months
- $1.60B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.