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Steel Dynamics - AI Stock Analysis
Analysis generated June 17, 2025
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States. The business model focuses on operating steel mills, recycling, and steel fabrication facilities. Steel Dynamics has a reputation for high-quality products and innovation within the steel industry. The company caters to a broad range of sectors including automotive, construction, and energy. With a vertically integrated business model, Steel Dynamics aims to control costs and maximize efficiency, contributing to its robust market position.
Fundamental Analysis
Revenue for the last quarter was $4.37 billion, reflecting a 12.84% increase compared to the previous quarter. This is a positive sign showing growth. However, when compared to the same quarter of the previous year, revenue decreased by 6.92%, indicating a potential area of concern for long-term revenue stability.
Net income for the last quarter was $217 million, seeing a 4.76% increase from the previous quarter. This is another positive indicator. Nonetheless, compared to the same quarter last year, net income decreased by 62.82%, signaling significant issues that need attention.
EBITDA for the last quarter came in at $275 million, representing a decrease of 28.37% from the previous quarter. When compared to the same quarter last year, EBITDA fell by 68.24%. This decline may point toward operational inefficiencies or increased costs, warranting further investigation.
The current Price-Earnings (P/E) ratio is 17.54. This ratio suggests that the stock is neither undervalued nor overvalued, sitting within a range considered normal for the industry.
Technical Analysis
The current stock price is $133.16, which marks a decrease of 1.20% compared to a month ago. This may be concerning for short-term investors. However, compared to the same time last year, the stock price has increased by 8.16%, reflecting a positive long-term trend.
The trend is currently bearish. The Simple Moving Average (SMA10) stands at 132.86, slightly lower than the previous SMA10 of 132.90. This suggests a potential downward trend in price movement.
The Relative Strength Index (RSI) is 62.2, indicating a neutral condition. This implies that the stock is neither overbought nor oversold at the moment.
Alternative Data Analysis
Job postings at Steel Dynamics stand at 130, down by 14% in recent months. This could indicate a company focusing on margin improvement or cost-cutting, which is not typically a sign of growth.
However, employee sentiment is extremely positive, with 81% of employees having a favorable outlook toward the company. The outlook has increased by 9% in the last couple of months, another positive trend.
Customer acquisition looks promising, with an estimated 31,000 visitors to their webpage, up by 11% in recent months. An increase in webpage visitors often suggests rising interest and potential customer base expansion.
Additionally, AltIndex’s AI score for Steel Dynamics is 50, which signals a hold. This score combines multiple data points—including fundamental, technical, and alternative data analyses—to offer a comprehensive recommendation.
Conclusion and Recommendation
Steel Dynamics presents a mixed bag of indicators. On the fundamental side, while there are signs of quarterly growth in revenue and net income, the year-over-year figures suggest caution. Technically, the stock exhibits bearish trends in the short term but shows a positive trend over the longer term. Employee sentiment and customer acquisition trends are positive, though the reduction in job postings is neutral or slightly negative.
Given these factors, a balanced approach might be to consider holding the stock rather than making large-scale moves. The stock appears to be fairly priced based on its P/E ratio, and with a neutral RSI, it doesn’t show signs of imminent overselling or overbuying.
Overall, the recommendation leans toward a cautious hold, keeping a watchful eye on future earnings reports and external economic conditions that might impact the steel industry.
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.
