Important note
This AI stock analysis for Steel Dynamics is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Steel Dynamics - AI Stock Analysis
Analysis generated August 15, 2025
Steel Dynamics, Inc. (SDI) is one of the largest and most diversified domestic steel producers and metals recyclers in the United States. Known for its efficiency and innovation, the company operates in the steel, ferrous recycling, and fabrication spaces. The company is headquartered in Fort Wayne, Indiana, and employs a comprehensive recycling-centric approach, which is key to its strategic advantage. SDI’s product lineup includes flat-rolled steel, structural steel, and specialized steel beams. Over the years, it has expanded through various acquisitions and organic growth, enhancing its market reach and operational capabilities.
Fundamental Analysis
Revenue for the last quarter stood at $4.57 billion. This figure represents a 4.48% increase compared to the preceding quarter, signaling a positive sign of growth. However, compared to the same quarter last year, there is a slight decrease of 1.46%. While the quarterly growth is encouraging, the year-over-year dip necessitates an understanding of broader market dynamics and potential cyclical downturns the industry might be facing.
Net income for the last quarter was $299 million, which marks a 37.57% increase compared to the previous quarter, another positive growth indicator. However, compared to the same quarter last year, net income dropped by 30.20%. This significant decrease might be seen as a red flag unless offset by strategic initiatives or short-term market conditions.
EBITDA for the last quarter was $538 million. This represents a 26.16% increase compared to the prior quarter, reinforcing the perception of robust quarterly performance. However, there is a drop of 20.42% compared to the same quarter of the previous year. This disparity might be concerning and warrants a closer examination of operational efficiencies and cost management strategies.
The current Price-to-Earnings (P/E) ratio stands at 18.73. This is within a typical range, indicating that the stock is neither overvalued nor undervalued. However, it's essential to keep an eye on valuation changes as they can reflect shifts in market sentiment.
Additionally, recent insider selling activity indicates potential bearish sentiment. Insider sales can often precede a decline in stock value, so it’s vital to consider this along with other data points.
Technical Analysis
Today’s stock price is $126.48, representing a decrease of 1.85% compared to a month ago, which may be concerning in the short term. However, compared to a year ago, there is a noteworthy 10.08% increase, signaling a positive long-term trend.
The current price trajectory appears to be bullish, with the SMA10 climbing to 124.46 from 124.16. This gradual increase suggests a potential upward trend in price movement.
The Relative Strength Index (RSI) is currently 60.1, indicating a neutral condition. An RSI near 60 is not in the overbought territory, yet it hints at cautious optimism from the market.
Alternative Data Analysis
Analyzing job postings and employee sentiment reveals that Steel Dynamics has 125 open positions, reflecting a 5% increase in the last couple of months. This uptick suggests a company poised for expansion and is generally a positive sign.
The business outlook among employees is highly favorable, with an estimate of 84% of employees expressing a positive outlook. High employee morale can be indicative of a solid organizational culture and operational competency.
However, customer acquisition metrics paint a less optimistic picture. Steel Dynamics has approximately 32,000 visitors to their webpage, but this number has dropped by 29% in the last couple of months. This decline may be concerning as it can signal a reduction in customer interest or engagement.
Additionally, AltIndex’s AI score for Steel Dynamics is 74, which is a buy signal based on combined fundamental, technical, and alternative data analyses.
Conclusion
Steel Dynamics presents a mixed bag of indicators. On the positive side, the company shows robust short-term financial growth with increased quarterly revenues, net income, and EBITDA. The technical indicators like the upward trend in SMA10 and a neutral RSI are also promising. Furthermore, favorable alternative data such as increased job openings and positive employee sentiment bolster the case for a growing, thriving company.
However, caution is advised given the year-over-year declines in revenue, net income, and EBITDA. Recent insider selling also raises some red flags. Additionally, the drop in website visits indicates potential issues with customer acquisition or engagement.
Given these mixed signals, investors should weigh the short-term financial positives and upward technical trends against the longer-term concerns and insider activities. A balanced approach with close monitoring of quarterly developments and market conditions is recommended.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
