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STLDSteel Dynamics, Inc.Sell5.9·$220.39-0.62%
SellModerate Confidence
Investment thesis

Steel Dynamics earns best-in-class peer rankings for return on equity and margins, generates strong year-over-year earnings growth of 46%, and has received recent positive analyst mentions, but has already surpassed its analyst consensus price target, carries a negative free cash flow flag, and posted mixed earnings results over the past 4 quarters.

Thesis pillars

  • Analyst Target Reached No UpsideStable
  • Best In Class Peer Margins RoeStable
  • Earnings Growth 46pct YoyStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Steel Dynamics, Inc. (STLD) Stock Analysis

SellVALUE-TRAP 2/5Moderate Confidence

Basic Materials · Steel

Sell if holding. At $220.39, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.1%; Commodity cycle peak: fwd P/E 11.9× (below 12) + fwd/trail 0.51× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced..

Steel Dynamics, Inc. is a leading industrial metals solutions company, with facilities located throughout the United States and Mexico. The company operates a circular manufacturing model, producing high-quality, lower-carbon-emission products with recycled scrap as the primary... Read more

$220.39+7.1% A.UpsideScore 5.9/10#2 of 13 Steel
QualityF-score8 / 9FCF yield-0.10%
IncomeYield0.96%(5y avg 1.40%)Payout21.76%sustainable
Stop $209.87Target $235.99(analyst − 13%)A.R:R 0.8:1
Analyst target$271.25+23.1%12 analysts
$235.99our TP
$220.39price
$271.25mean
$310

Sell if holding. At $220.39, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.1%; Commodity cycle peak: fwd P/E 11.9× (below 12) + fwd/trail 0.51× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.9/10, moderate confidence.

Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 16d clear, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and materials cycle peak fwd=11.9x,ratio=0.51x. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-06
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Mon, Jul 20, 202616d to earnings· next earnings call

Thesis

Rewards
Attractive valuation
Strong growth profile
Risks
Commodity cycle peak: fwd P/E 11.9× (below 12) + fwd/trail 0.51× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.
Thin upside margin: 7.1%
Consecutive earnings misses (2)

Key Metrics

P/E (TTM)23.6
P/E (Fwd)11.9
Mkt Cap$31.8B
EV/EBITDA15.3
Profit Mgn7.2%
ROE15.2%
Rev Growth19.1%
Beta1.54
Dividend0.96%
Rating analysts21

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.60bullish
IV60%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Ma Position
4.0
Volume
4.3
Rsi
8.8
Oversold in uptrend (RSI 18)Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.6<4.5A.R:R 0.8 < 1.5@spotMATERIALS CYCLE PEAK fwd=11.9x,ratio=0.51xInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 16d clearSEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
18 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $216.36Resistance $288.09

Price Targets

$210
$236
A.Upside+7.1%
A.R:R0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! NEWS_MOD=-1: HOLD_IF_HOLDING → SELL_IF_HOLDING
! momentum at 3.6 (below the engine's 4.5 threshold)
! asymmetry at 0.8 (below the engine's 1.5 threshold)@spot

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-20 (16d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is STLD stock a buy right now?

Sell if holding. At $220.39, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.1%; Commodity cycle peak: fwd P/E 11.9× (below 12) + fwd/trail 0.51× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $209.87. Score 5.9/10, moderate confidence.

What is the STLD stock price target?

Take-profit target: $235.99 (+7.1% upside). Prior stop was $209.87. Stop-loss: $209.87.

What are the risks of investing in STLD?

Commodity cycle peak: fwd P/E 11.9× (below 12) + fwd/trail 0.51× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Thin upside margin: 7.1%; Consecutive earnings misses (2).

Is STLD overvalued or undervalued?

Steel Dynamics, Inc. trades at a P/E of 23.6 (forward 11.9). TrendMatrix value score: 7.3/10. Verdict: Sell.

What do analysts say about STLD?

21 analysts cover STLD with a consensus score of 3.7/5. Average price target: $271.

What does Steel Dynamics, Inc. do?Steel Dynamics, Inc. is a leading industrial metals solutions company, with facilities located throughout the United...

Steel Dynamics, Inc. is a leading industrial metals solutions company, with facilities located throughout the United States and Mexico. The company operates a circular manufacturing model, producing high-quality, lower-carbon-emission products with recycled scrap as the primary input.

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