CluenexSteel Dynamics STLD
Steel Dynamics scores average on business quality (5.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Steel Dynamics does
Steel Dynamics produces steel and recycles metal, selling scrap and finished products to construction and industrial markets. It operates steel mills and recycling yards across the United States.
- What it does best
Steel Dynamics recycles scrap metal and melts it into finished steel with a return on equity of 17.6%. This asset-light recycling network gives it a low-cost feedstock advantage that competitors like CLF, which posted a negative ROE, struggle to match.
- The main risk
Global overproduction, highlighted by China's domestic steel glut, threatens domestic pricing power. If cheap imports flood the market, revenue growth stalls and operating margins face immediate compression.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 10.0% and FCF margin sits at 4.6%. Profitability remains soft compared to peak cycle years, and scale advantages have not protected margins from cyclical downturns.
Geographic clustering near scrap sources and customers forms its regional moat, locking in buyers with low freight costs. Gross margin sits in the 13th sector percentile, showing limited pricing power.
Revenue growth crawls at 3.6%, ranking in the middle of the pack at the 51st percentile. History shows revenue peaked above $22 billion in 2022 and has since drifted lower.
Debt-to-equity sits at 0.47 and interest coverage is 18x, meaning debt costs are manageable. Free cash flow reached $956 million, showing steady generation that supports capital returns.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on STLD
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Steel Dynamics scores average on the Cluenex quality check (5.0 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 19, 2026, after the close.
See STLD today
- Today's verdict on STLD, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Steel Dynamics (STLD)”, https://cluenex.com/stocks/stld/, data as of Oct 10, 2026.