Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steel products manufacturer Steel Dynamics (Nasdaq: STLD ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Steel Dynamics' business and see what CAPS investors are saying about the stock right now.
Steel Dynamics facts
| Headquarters (Founded) |
Fort Wayne, Ind. (1993) |
| Market Cap |
$2.96 billion |
| Industry |
Steel |
| Trailing-12-Month Revenue |
$7.67 billion |
| Management |
Co-Founder/Chairman/CEO Keith Busse
Co-Founder/President/COO Mark Millett
|
| Return on Equity (Average, Past 3 Years) |
3.9% |
| Cash/Debt |
$456.7 million / $2.38 billion |
| Dividend Yield |
3% |
| Competitors |
AK Steel (NYSE: AKS )
Nucor (NYSE: NUE )
U.S. Steel (NYSE: X )
|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 992 members who have rated Steel Dynamics believe the stock will outperform the S&P 500 going forward. These bulls include laborduck and QuarkHadron.
This past summer, laborduck tapped Steel Dynamics as a particularly strong selection: "A vertical, mini-mill steel company with growing opportunities for expansion ... and an excellent track record of returning value to shareholders."
Over the next five years, in fact, Steel Dynamics is expected to grow its bottom line at a brisk rate of 16% annually. That's faster than competitors like AK Steel (5%), Nucor (12%), and U.S. Steel (7%).
CAPS member QuarkHadron elaborates on the Steel Dynamics bull case:
Long term -- 5 years. Good PE, book value near share price. Dividend and it looks like earnings can continue to support it. Infrastructure building will need to get (re)started when economy starts to improve -- gotta happen eventually.
I needed some basic manufacturing in my portfolio, and this one seemed to fit the bill nicely.
What do you think about Steel Dynamics, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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