Nucor (NUE) AI Stock Analysis

• Market Cap: $28.77B
• Dividend Yield: 1.88%
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.14
• Revenue Growth: -10.88%
• EPS Growth: -66.97%
• Country: US
• Employees: 32,700
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Steel
• EPS (TTM): 0.77
• Shares Outstanding: 230,750,500
• 10 Day Avg. Volume: 3,011,405
• 30 Day Avg. Volume: 2,336,920
• PEG Ratio: -0.52
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.98
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 11.62
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $143.75
• Price Target Upside: 21.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $130.00 ▲(9.75%Upside)

Nucor's overall stock score reflects a stable financial position with strong future growth prospects. However, challenges in current profit margins and cash flow, along with mixed technical indicators and valuation concerns, weigh on the score. Positive guidance and strategic initiatives provide a favorable outlook, but the company's ability to improve profitability and manage liquidity will be key.

Positive Factors

Growth Strategy

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

Steel Tariffs

Nucor remains well-positioned to benefit from the announced doubling of steel tariffs due to its relatively lower utilization rates and diversified product mix.

Valuation

The current valuation of NUE shares looks compelling, trading at a discount to its closest peer, with the risk/reward positively tilted.

Negative Factors

Capital Expenditure

Elevated capex remains a headwind, and the current capex does not account for any impact from tariffs, presenting some risk.

Stock Performance

NUE shares have delivered a relative underperformance YTD, and are currently trading at a discount to its closest peer, making the valuation compelling and the risk/reward positively tilted.

Nucor Business Overview & Revenue Model

Company Description

Nucor Corporation manufactures and sells steel and steel products. The company's Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling products; and bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and special bar quality products. It also engages in the steel trading and rebar distribution businesses. This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico. Its Steel Products segment offers hollow structural section steel tubing products, electrical conduits, steel racking, steel joists and joist girders, steel decks, fabricated concrete reinforcing steel products, cold finished steel products, steel fasteners, metal building systems, insulated metal panels, steel grating and expanded metal products, and wire and wire mesh products primarily for use in nonresidential construction applications. This segment also engages in the piling distribution business. The company's Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal, as well as engages in the natural gas drilling operations. This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals. It serves agriculture, automotive, construction, energy and transmission, oil and gas, heavy equipment, infrastructure, and transportation industries through its in-house sales force; and internal distribution and trading companies. Nucor Corporation was incorporated in 1958 and is based in Charlotte, North Carolina.

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's financial performance shows stability but with some areas for improvement. The income statement reflects a decline in revenue growth and profit margins, while the balance sheet is strong with conservative leverage and a solid equity ratio. Cash flow analysis indicates challenges due to decreased free cash flow, which could impact liquidity if the trend continues.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
30.43B	30.73B	34.71B	41.51B	36.48B	20.14B
	Gross Profit
3.18B	4.10B	7.82B	12.50B	11.03B	2.23B
	EBIT
2.11B	2.98B	6.23B	10.51B	9.32B	1.61B
	EBITDA
3.54B	4.49B	7.69B	11.57B	10.23B	1.79B
	Net Income Common Stockholders
1.34B	2.03B	4.52B	7.61B	6.83B	721.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.06B	4.14B	7.13B	4.86B	2.62B	3.05B
	Total Assets
34.70B	33.94B	35.34B	32.48B	25.82B	20.13B
	Total Debt
7.88B	6.95B	6.95B	6.69B	5.68B	5.34B
	Net Debt
4.72B	3.39B	565.97M	2.41B	3.32B	2.70B
	Total Liabilities
13.58B	12.52B	13.22B	12.91B	11.22B	8.89B
	Stockholders Equity
20.07B	20.29B	20.94B	18.41B	14.02B	10.79B
Cash Flow		Free Cash Flow
521.69M	806.00M	4.90B	8.12B	4.61B	1.15B
	Operating Cash Flow
3.88B	3.98B	7.11B	10.07B	6.23B	2.70B
	Investing Cash Flow
-4.02B	-3.73B	-2.50B	-5.70B	-2.87B	-1.76B
	Financing Cash Flow
-1.25B	-3.06B	-2.59B	-2.51B	-3.60B	285.85M

Nucor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 118.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUE, the sentiment is Negative. The current price of 118.45 is above the 20-day moving average (MA) of 115.88, above the 50-day MA of 114.70, and below the 200-day MA of 131.33, indicating a neutral trend. The MACD of 1.33 indicates Negative momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 60.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NUE.

Nucor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RS	78 Outperform	$16.39B	22.34	10.27%	1.56%	-5.60%	-35.05%
STLD	78 Outperform	$19.86B	17.69	13.08%	1.54%	-7.42%	-48.08%
NUE	72 Outperform	$28.77B	22.20	6.54%	1.88%	-10.88%	-66.97%
MT	67 Neutral	$25.23B	18.00	2.60%	0.76%	-8.56%	68.36%
PKX	66 Neutral	$13.81B	23.08	1.64%	2.81%	-8.83%	-43.85%
X	52 Neutral	$12.11B	181.53	0.86%	0.37%	-14.79%	-88.78%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%

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.