Stock Analysis on Net

Steel Dynamics Inc. (NASDAQ:STLD)

This company has been moved to the archive! The financial data has not been updated since October 26, 2022.

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Steel Dynamics Inc., FCFF calculation

US$ in thousands

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income attributable to Steel Dynamics, Inc. 3,214,066 550,822 671,103 1,258,379 812,741
Net (income) loss attributable to noncontrolling interests 32,748 20,006 6,797 (2,574) (6,945)
Net noncash charges 724,135 479,578 421,847 421,097 213,365
Changes in certain assets and liabilities (1,766,813) (63,374) 296,543 (261,433) (279,555)
Net cash provided by operating activities 2,204,136 987,032 1,396,290 1,415,469 739,606
Cash paid for interest, net of tax1 79,701 90,277 104,142 96,126 90,570
Capitalized interest on construction in progress assets, net of tax2 38,936 19,335 4,257 2,248 1,137
Purchases of property, plant and equipment (1,006,239) (1,198,055) (451,945) (239,390) (164,935)
Free cash flow to the firm (FCFF) 1,316,534 (101,411) 1,052,744 1,274,453 666,378

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Steel Dynamics Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Steel Dynamics Inc. FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Interest Paid, Net of Tax

Steel Dynamics Inc., interest paid, net of tax calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 22.90% 19.10% 22.60% 22.50% 33.10%
Interest Paid, Net of Tax
Cash paid for interest, before tax 103,374 111,591 134,550 124,034 135,381
Less: Cash paid for interest, tax2 23,673 21,314 30,408 27,908 44,811
Cash paid for interest, net of tax 79,701 90,277 104,142 96,126 90,570
Interest Costs Capitalized, Net of Tax
Capitalized interest on construction in progress assets, before tax 50,500 23,900 5,500 2,900 1,700
Less: Capitalized interest on construction in progress assets, tax3 11,565 4,565 1,243 653 563
Capitalized interest on construction in progress assets, net of tax 38,936 19,335 4,257 2,248 1,137

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 2021 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 103,374 × 22.90% = 23,673

3 2021 Calculation
Capitalized interest on construction in progress assets, tax = Capitalized interest on construction in progress assets × EITR
= 50,500 × 22.90% = 11,565


Enterprise Value to FCFF Ratio, Current

Steel Dynamics Inc., current EV/FCFF calculation, comparison to benchmarks

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Selected Financial Data (US$ in thousands)
Enterprise value (EV) 18,879,145
Free cash flow to the firm (FCFF) 1,316,534
Valuation Ratio
EV/FCFF 14.34
Benchmarks
EV/FCFF, Competitors1
Freeport-McMoRan Inc. 92.49
EV/FCFF, Industry
Materials 23.99

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Steel Dynamics Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 15,168,019 10,864,840 6,678,596 9,665,432 12,412,536
Free cash flow to the firm (FCFF)2 1,316,534 (101,411) 1,052,744 1,274,453 666,378
Valuation Ratio
EV/FCFF3 11.52 6.34 7.58 18.63
Benchmarks
EV/FCFF, Competitors4
Freeport-McMoRan Inc. 12.13 46.43
EV/FCFF, Industry
Materials 18.19 36.43 79.74

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 15,168,019 ÷ 1,316,534 = 11.52

4 Click competitor name to see calculations.