Nucor (NUE) AI Stock Analysis

• Market Cap: $31.80B
• Dividend Yield: 1.6%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.14
• Revenue Growth: -10.88%
• EPS Growth: -66.97%
• Country: US
• Employees: 32,700
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 0.77
• Shares Outstanding: 230,750,500
• 10 Day Avg. Volume: 1,366,322
• 30 Day Avg. Volume: 2,042,369
• PEG Ratio: -0.73
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.38
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 11.51
• Enterprise Value/Ebitda: 1.96
• 1Y Price Target: $151.33
• Price Target Upside: 7.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 79 Outperform
• Price Target: $153.00 ▲(8.70%Upside)

Nucor's overall score reflects a stable financial position and strong operational efficiency, supported by positive technical signals and favorable corporate events. The optimistic outlook from the recent earnings call and strategic initiatives provide a positive future trajectory. However, high valuation multiples and recent declines in profitability temper the score, indicating a need for caution.

Positive Factors

Earnings

NUE shares are expected to outperform due to better than consensus EPS guidance.

Growth Strategy

Nucor is executing on a multi-year organic growth plan that should support higher through-cycle profitability and free cash flow.

Market Position

Nucor is considered a best-in-class steel producer with a diversified product and end market mix.

Negative Factors

Market Conditions

The current outlook is murkier, given the tariff uncertainty and seasonal slowness impacting the sheet market.

Share Repurchase

The company has repurchased fewer shares than modeled, which could affect expected earnings per share calculations.

Nucor Business Overview & Revenue Model

Company Description

Nucor Corporation (NUE) is a leading American producer of steel and related products. The company operates in the steel manufacturing sector and is headquartered in Charlotte, North Carolina. Nucor is known for its innovative approach to steel production, focusing on sustainability and efficiency. Its core products include a wide range of steel components such as beams, sheets, plates, and bars, which are used in various industries including construction, automotive, energy, and manufacturing.

How the Company Makes Money

Nucor Corporation generates revenue primarily through the production and sale of steel and steel-related products. The company's key revenue streams include the sale of steel mills products, steel products, and raw materials. Nucor operates a highly integrated business model with operations spanning from steelmaking to the production of finished steel goods. The company benefits from its use of electric arc furnaces, which are more energy-efficient and environmentally friendly compared to traditional blast furnaces. Additionally, Nucor maintains strategic partnerships and long-term contracts with suppliers and customers to ensure a steady supply of raw materials and demand for its products. The company's focus on innovation and sustainability further enhances its competitiveness and profitability in the steel industry.

Nucor Financial Statement Overview

Summary

Nucor shows a stable financial profile with strong operational efficiency and a robust balance sheet, but recent declines in revenue growth and profit margins need attention. The company maintains conservative leverage, a positive sign for financial health. However, cash flow generation faces challenges, requiring prudent management of capital expenditures to mitigate potential liquidity issues.

Income Statement

Nucor's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue decreased slightly compared to the previous year, indicating a challenge in maintaining revenue growth. The gross profit margin is healthy at approximately 10.5%, but it has decreased from prior years. The net profit margin shows resilience at 4.4%, although it has also declined from previous highs. The EBIT and EBITDA margins are robust, signifying strong operational efficiency despite top-line challenges.

Balance Sheet

Nucor's balance sheet highlights a solid financial position with a debt-to-equity ratio of 0.39, indicating conservative leverage. The equity ratio of 57.8% provides a strong buffer against liabilities. Return on equity (ROE) is solid, though lower compared to past performance, which could be due to the decline in net income. Overall, the balance sheet reflects financial stability and prudent capital management.

Cash Flow

Cash flow analysis indicates some challenges. The operating cash flow to net income ratio is strong, showing efficient cash conversion. However, free cash flow has decreased significantly in the TTM period, reflecting increased capital expenditures. The free cash flow to net income ratio has also weakened, suggesting potential liquidity concerns if this trend continues. The company should monitor capital spending to ensure future cash flow stability.

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
EBITDA	4.49B	7.69B	11.57B	10.23B	1.79B
Net Income	2.03B	4.52B	7.61B	6.83B	721.47M
Balance Sheet
Total Assets	33.94B	35.34B	32.48B	25.82B	20.13B
Cash, Cash Equivalents and Short-Term Investments	4.14B	7.13B	4.86B	2.62B	3.05B
Total Debt	6.95B	6.95B	6.69B	5.68B	5.34B
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

• Technical Analysis Sentiment: Positive
• Last Price: 140.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUE, the sentiment is Positive. The current price of 140.75 is above the 20-day moving average (MA) of 135.36, above the 50-day MA of 124.08, and above the 200-day MA of 129.62, indicating a bullish trend. The MACD of 5.00 indicates Positive momentum. The RSI at 65.45 is Neutral, neither overbought nor oversold. The STOCH value of 43.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NUE.

Nucor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUE	79 Outperform	$31.80B	25.06	6.54%	1.60%	-10.88%	-66.97%
STLD	75 Outperform	$18.92B	17.34	13.08%	1.57%	-7.42%	-48.08%
RS	72 Outperform	$17.14B	23.71	10.27%	1.45%	-5.60%	-35.05%
PKX	71 Outperform	$16.15B	26.21	1.64%	2.56%	-8.83%	-43.85%
Sector *	70 Outperform	¥175.49B	11.17	6.29%	3.42%	3.91%	3.49%
MT	69 Neutral	$26.75B	19.19	2.60%	0.72%	-8.56%	68.36%

Nucor Corporate Events

Nucor Stockholders Approve 2025 Strategic Plan

On May 8, 2025, Nucor held its Annual Meeting where stockholders elected eight directors to serve until the 2026 meeting. The stockholders ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 and approved the executive compensation for 2024. Additionally, the 2025 Plan was approved, indicating strong support for the company’s strategic initiatives.

The most recent analyst rating on (NUE) stock is a Buy with a $176.00 price target. To see the full list of analyst forecasts on Nucor stock, see the NUE Stock Forecast page.

Nucor Reports Q1 2025 Financial Results

Nucor Corporation reported its financial results for the first quarter of 2025, showing net earnings of $156 million and net sales of $7.83 billion. Despite a decline in earnings compared to the previous year, the company saw increased steel mill shipments and maintained a strong financial position with $4.06 billion in cash and short-term investments. Nucor’s strategic investments and diverse product offerings continue to position it as a leading North American steel producer, with expectations for improved earnings in the second quarter of 2025 across all segments.