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Nucor (NUE)
:NUE
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Nucor
(NYSE:NUE)73Outperform
Positive Factors
Earnings Performance
Nucor reported better results across all three segments for Q4'24, boosting EPS significantly above expectations.
Market Outlook
NUE presented a more upbeat view on the steel market, echoing peers that construction activity is set to improve, underpinned by public spending, including infrastructure.
Negative Factors
Guidance and Forecasts
NUE shares are expected to underperform due to worse than expected guidance.
Nucor (NUE) vs. S&P 500 (SPY)
Market Cap
$30.54B
Dividend Yield1.64%
Average Volume (3M)3.07M
Price to Earnings (P/E)15.7
Beta (1Y)1.06
Revenue Growth-11.46%
EPS Growth-53.29%
CountryUS
Employees32,000
SectorBasic Materials
Sector Strength56
IndustrySteel
Share Statistics
EPS (TTM)8.40
Shares Outstanding230,535,830
10 Day Avg. Volume2,757,264
30 Day Avg. Volume3,074,396
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.99
Price to Cash Flow (P/CF)10.40
P/FCF Ratio9.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$153.29Price Target Upside14.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Nucor Business Overview & Revenue Model
Company DescriptionNucor Corporation (NUE) is a leading American manufacturer in the steel industry, headquartered in Charlotte, North Carolina. The company is primarily engaged in the production of steel and steel products, including sheet and plate steel, structural beams, bars, and steel joists. Nucor operates through a network of mini mills, scrap-based steel manufacturing facilities, and downstream operations that provide a diverse range of products to various sectors, including construction, automotive, agriculture, and energy.
How the Company Makes MoneyNucor makes money primarily through the sale of steel and related products. Its revenue model is centered on its vertically integrated operations, which start with the recycling of scrap metal to produce steel in its electric arc furnaces. The company then processes and sells this steel in various forms, including sheet steel, bar steel, and structural steel, to a wide array of industries. Nucor's mini mills offer a cost advantage by using recycled scrap as a raw material, which helps maintain competitive pricing. Additionally, the company benefits from its downstream operations, which include steel fabrication and the production of steel products such as joists and decking. Key revenue streams include sales from its steel mills, steel products segment, and raw materials segment. Significant factors contributing to Nucor's earnings include strategic acquisitions, geographic expansion, and partnerships with industry leaders that enhance its product offerings and market reach.
Nucor Financial Statement Overview
Summary
Nucor's financial performance is robust with strong profitability and a solid balance sheet, despite challenges in sustaining revenue and profit growth. The balance sheet provides stability, while efficient cash management highlights effective financial operations. However, recent declines in revenue and margins suggest mounting pressures.Income Statement
Nucor has demonstrated strong historical performance with robust gross and net profit margins. However, recent declines in revenue and margins from previous highs indicate potential challenges in maintaining growth. Key strengths include a historically high gross profit margin and a solid EBIT margin, though recent contraction in these metrics suggests increased cost pressures or competitive dynamics.75
Positive
Balance Sheet
The company maintains a solid balance sheet with a reasonable debt-to-equity ratio and strong equity position. The equity ratio indicates a strong financial foundation, though a slight increase in debt levels over the years warrants monitoring. The return on equity remains healthy, underscoring effective utilization of capital.80
Positive
Cash Flow
Nucor exhibits strong operating cash flow, though there is variability in free cash flow due to significant capital expenditures. The operating cash flow to net income ratio highlights efficient cash management, but recent declines in free cash flow growth suggest potential for reduced liquidity if capital investments continue at high levels.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 30.73B | 34.71B | 41.51B | 36.48B | 20.14B | Gross Profit |
| 4.10B | 7.82B | 12.50B | 11.03B | 2.23B | EBIT |
| 2.98B | 6.24B | 10.52B | 9.42B | 1.60B | EBITDA |
| 4.33B | 7.69B | 11.53B | 10.23B | 1.79B | Net Income Common Stockholders |
| 2.03B | 4.52B | 7.61B | 6.83B | 721.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.14B | 7.13B | 4.86B | 2.62B | 3.05B | Total Assets |
| 33.94B | 35.34B | 32.48B | 25.82B | 20.13B | Total Debt |
| 6.95B | 6.95B | 6.69B | 5.68B | 5.34B | Net Debt |
| 3.39B | 565.97M | 2.41B | 3.32B | 2.70B | Total Liabilities |
| 12.52B | 13.22B | 12.91B | 11.22B | 8.89B | Stockholders Equity |
| 20.29B | 20.94B | 18.41B | 14.02B | 10.79B |
| Cash Flow | Free Cash Flow | |||
| 806.00M | 4.90B | 8.12B | 4.61B | 1.15B | Operating Cash Flow |
| 3.98B | 7.11B | 10.07B | 6.23B | 2.70B | Investing Cash Flow |
| -3.73B | -2.50B | -5.70B | -2.87B | -1.76B | Financing Cash Flow |
| -3.06B | -2.59B | -2.51B | -3.60B | 285.85M |
Nucor Technical Analysis
Neutral
133.72
Price Trends
127.74
Positive
136.46
Negative
144.33
Negative
Market Momentum
0.76
Positive
51.09
Neutral
44.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUE, the sentiment is Neutral. The current price of 133.72 is below the 20-day moving average (MA) of 135.56, above the 50-day MA of 127.74, and below the 200-day MA of 144.33, indicating a neutral trend. The MACD of 0.76 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 44.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NUE.
Nucor Risk Analysis
Nucor disclosed 17 risk factors in its most recent earnings report. Nucor reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nucor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.01B | 18.05 | 11.71% | 1.55% | -6.56% | -31.89% | |
73 Outperform | $30.54B | 15.66 | 9.79% | 1.64% | -11.46% | -53.29% | |
73 Outperform | $8.22B | 22.41 | 22.82% | ― | 4.51% | -2.90% | |
72 Outperform | $19.18B | 12.97 | 17.27% | 1.47% | -6.68% | -32.96% | |
60 Neutral | $5.37B | 42.53 | 3.24% | 1.52% | -8.66% | -82.83% | |
52 Neutral | $8.43B | 23.96 | 3.43% | 0.53% | -13.48% | -56.94% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
NUE
Nucor
133.72
-48.42
-26.58%
ATI
ATI
55.26
5.84
11.82%
CMC
Commercial Metals Company
45.86
-5.93
-11.45%
RS
Reliance Steel
288.93
-24.19
-7.73%
STLD
Steel Dynamics
125.03
-3.01
-2.35%
X
United States Steel
36.23
-10.63
-22.68%
Nucor Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: 9.63% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance with significant achievements in safety, financial results, and strategic investments. However, challenges such as declining steel mill earnings and trade issues were noted. The company maintains an optimistic outlook for 2025, expecting growth and improved demand.Highlights
Record Safety Performance
2024 was the safest year in Nucor's history with the fewest recordable and reportable injuries. The injury and illness rate declined for the seventh consecutive year.
Strong Financial Performance
Nucor earned $1.22 per share in Q4 and $8.46 for the full year. Generated EBITDA of $751 million for the quarter and nearly $4.4 billion for the year.
Significant Shareholder Returns
Nucor returned over $2.7 billion to shareholders through share repurchases and dividends in 2024, with a five-year total of approximately $12 billion.
Strategic Investments and Growth
Invested approximately $3.2 billion in CapEx and $760 million in acquisitions in 2024. Progress on major projects like the West Virginia sheet mill and other key growth initiatives.
Positive Future Outlook
Expect modest steel demand growth in early 2025 with increased momentum in the second half. Strong infrastructure and institutional construction activity anticipated.
Lowlights
Decline in Steel Mill Segment Earnings
Steel mill segment pre-tax earnings decreased by 45% from the prior quarter, with realized pricing and metal margins declining.
Impact of Unfair Trade Practices
Earnings negatively affected by rising global steel overcapacity and unfairly traded imports. Calls for stronger trade measures and tariffs.
Potential Impact of Tariffs
Concerns over tariffs affecting operations, particularly imports of slabs at California Steel and operations in Mexico, with potential negative implications.
Company Guidance
During Nucor's Fourth Quarter 2024 Earnings Call, the company provided detailed guidance on several key metrics. Nucor reported earnings of $1.22 per share for the fourth quarter, contributing to a full-year earnings of $8.46 per share. The company's EBITDA for the quarter was $751 million, totaling nearly $4.4 billion for the year. Capital expenditures for 2024 amounted to approximately $3.2 billion, with $760 million allocated for acquisitions. Nucor returned over $2.7 billion to shareholders through share repurchases and dividends. In terms of future investments, approximately 65% of their 2025 capital expenditure budget is focused on growth initiatives, including the construction of the West Virginia sheet mill, which is about 40% complete. Nucor maintained a strong balance sheet with $4.1 billion in cash at year's end and a debt-to-capital ratio of about 25%. For 2025, the company anticipates capital spending of approximately $3 billion and plans to continue returning at least 40% of annual net earnings to shareholders.Nucor Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Nucor Projects Recovery Amid 2024 Financial Decline
Neutral
Jan 27, 2025
Nucor Corporation reported its financial results for the fourth quarter and full year 2024, showing a decrease in net earnings and sales compared to 2023. Despite softened steel demand in 2024, Nucor anticipates improving market conditions in 2025, with plans to leverage its position to support steel-intensive U.S. economic trends. The company maintained strong financial health with significant cash reserves, an undrawn credit facility, and a commitment to returning capital to shareholders through dividends and share repurchases.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.