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Steel Dynamics (Steel Dynamics) Piotroski F-Score : 5 (As of Apr. 27, 2024)


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What is Steel Dynamics Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Steel Dynamics has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Steel Dynamics's Piotroski F-Score or its related term are showing as below:

STLD' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 6   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of Steel Dynamics was 8. The lowest was 5. And the median was 6.


Steel Dynamics Piotroski F-Score Historical Data

The historical data trend for Steel Dynamics's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Steel Dynamics Piotroski F-Score Chart

Steel Dynamics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 5.00 7.00 6.00 5.00

Steel Dynamics Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 6.00 5.00 -

Competitive Comparison of Steel Dynamics's Piotroski F-Score

For the Steel subindustry, Steel Dynamics's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Steel Dynamics's Piotroski F-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Steel Dynamics's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Steel Dynamics's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 812.107 + 577.195 + 424.27 + 584.041 = $2,398 Mil.
Cash Flow from Operations was 807.806 + 1113.699 + 864.64 + 355.217 = $3,141 Mil.
Revenue was 5081.63 + 4587.057 + 4233.423 + 4694.003 = $18,596 Mil.
Gross Profit was 1306.858 + 952.019 + 730.884 + 980.798 = $3,971 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(14219.76 + 14551.397 + 14928.956 + 14908.42 + 15026.75) / 5 = $14727.0566 Mil.
Total Assets at the begining of this year (Mar23) was $14,220 Mil.
Long-Term Debt & Capital Lease Obligation was $2,612 Mil.
Total Current Assets was $6,597 Mil.
Total Current Liabilities was $2,299 Mil.
Net Income was 1209.554 + 914.325 + 634.864 + 637.31 = $3,396 Mil.

Revenue was 6212.878 + 5651.707 + 4826.287 + 4893.206 = $21,584 Mil.
Gross Profit was 1883.342 + 1464.429 + 987.547 + 1056.122 = $5,391 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(13056.637 + 13711.214 + 14047.698 + 14159.984 + 14219.76) / 5 = $13839.0586 Mil.
Total Assets at the begining of last year (Mar22) was $13,057 Mil.
Long-Term Debt & Capital Lease Obligation was $3,014 Mil.
Total Current Assets was $7,563 Mil.
Total Current Liabilities was $1,821 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Steel Dynamics's current Net Income (TTM) was 2,398. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Steel Dynamics's current Cash Flow from Operations (TTM) was 3,141. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=2397.613/14219.76
=0.16861135

ROA (Last Year)=Net Income/Total Assets (Mar22)
=3396.053/13056.637
=0.26010166

Steel Dynamics's return on assets of this year was 0.16861135. Steel Dynamics's return on assets of last year was 0.26010166. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Steel Dynamics's current Net Income (TTM) was 2,398. Steel Dynamics's current Cash Flow from Operations (TTM) was 3,141. ==> 3,141 > 2,398 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=2612.246/14727.0566
=0.17737733

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=3014.358/13839.0586
=0.21781525

Steel Dynamics's gearing of this year was 0.17737733. Steel Dynamics's gearing of last year was 0.21781525. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=6597.436/2298.664
=2.8701176

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=7562.56/1820.546
=4.15400655

Steel Dynamics's current ratio of this year was 2.8701176. Steel Dynamics's current ratio of last year was 4.15400655. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Steel Dynamics's number of shares in issue this year was 159.354. Steel Dynamics's number of shares in issue last year was 172.479. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3970.559/18596.113
=0.21351553

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5391.44/21584.078
=0.24978783

Steel Dynamics's gross margin of this year was 0.21351553. Steel Dynamics's gross margin of last year was 0.24978783. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=18596.113/14219.76
=1.3077656

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=21584.078/13056.637
=1.65311159

Steel Dynamics's asset turnover of this year was 1.3077656. Steel Dynamics's asset turnover of last year was 1.65311159. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Steel Dynamics has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Steel Dynamics  (NAS:STLD) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Steel Dynamics Piotroski F-Score Related Terms

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Steel Dynamics (Steel Dynamics) Business Description

Traded in Other Exchanges
Address
7575 West Jefferson Boulevard, Fort Wayne, IN, USA, 46804
Steel Dynamics Inc operates scrap-based steel minimills with roughly 16 million tons of annual steel production capacity. The company's segment includes steel operations, metals recycling operations, and steel fabrication operations. It generates maximum revenue from the steel operations segment.
Executives
Glenn Pushis officer: Senior Vice President 4500 COUNTY ROAD 59, BUTLER IN 46721
James C Marcuccilli director 127 W BERRY ST, FORT WAYNE IN 46802
Bradley S Seaman director 161 SHAWFORD WAY, LAKE FOREST IL 60045
Richard A Poinsatte officer: Senior Vice President 6714 POINTE INVERNESS WAY, SUITE 200, FORT WAYNE IN 46804
Jennifer L Hamann director 1400 DOUGLAS STREET, OMAHA NE 68130
Christopher A Graham officer: Vice President 7575 W. JEFFERSON BLVD., FORT WAYNE IN 46804
Gabriel Shaheen director 1540 PARILLA CIRCLE, TRINITY FL 34655
Keith E Busse director 7575 W. JEFFERSON BLVD., FORT WAYNE IN 46804
James Stanley Anderson officer: Senior Vice President 203 E BERRY STREET, AWB SUITE 804, FORT WAYNE IN 46802
Luis Manuel Sierra director 1555 CORAOPOLIS HEIGHTS ROAD, MOON TOWNSHIP PA 15108
Miguel Alvarez officer: Senior Vice President 7575 WEST JEFFERSON BLVD., FORT WAYNE IN 46804
Mark D Millett director, officer: President and CEO 7575 W JEFFERSON BLVD, FORT WAYNE IN 46804
Theresa E Wagler officer: Executive Vice President & CFO 7575 W JEFFERSON BLVD, FORT WAYNE IN 46804
Russell B Rinn officer: Executive Vice President 7575 WEST JEFFERSON BOULEVARD, FORT WAYNE IN 46804
Kenneth W. Cornew director 10 SOUTH DEARBORN STREET, 54TH FLOOR, CHICAGO IL 60603

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