STLD

Steel Dynamics Inc

Industrial/Transportation


Presented:08/31/2016
Price:$24.62
Cap:$6.04B
Current Price:$128.46
Cap:$19.82B

Presented

Date08/31/2016
Price$24.62
Market Cap$6.04B
Ent Value$7.54B
P/E Ratio492.4x
Book Value$11.63
Div Yield0.02%
Shares O/S245.39M
Ave Daily Vol3,132,821
Short Int5.02%

Current

Price$128.46
Market Cap$19.82B
Steel Dynamics, Inc. is a diversified carbon-steel steel producer and metals recycler in the U.S. It produces a wide array of steel - beams, bars, steel sheet, and more. It operates through the following segments: Steel Operations, Metals Recycling Operations, Steel Fabrication Operations, and Others. The Steel Operations segment consist of its electric arc furnace mini-mills, producing steel from steel scrap, utilizing continuous casting, automated rolling mills, and various downstream finishing facilities. The Metals Recycling Operations segment primarily includes its metals recycling operations, liquid pig iron production facility, and Minnesota iron operations. The Steel Fabrication Operations segment includes New Millennium Building Systems plants, which fabricate steel joists, trusses, girders, and decking used within the non-residential construction industry. The company was founded by Keith E. Busse, Mark D. Millett, Richard P. Teets and John C. Bates in August 1993 and is headquartered in Fort Wayne, IN.

Publicly traded companies mentioned herein: Steel Dynamics Inc (STLD), United States Steel Corp (X)

Highlights

The presenter is long shares of Steel Dynamics (STLD), based on the idea that steel prices have gone through a “healthy correction” and are now at sustainable levels, and STLD is in a good position to capitalize on its Columbus acquisition and increase utilization. If his thesis proves correct, STLD shares could trade up to $35 - $40.

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Idea Discussion

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