Nucor (NUE) AI Stock Analysis

• Market Cap: $25.57B
• Dividend Yield: 1.77%
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.12
• Revenue Growth: -10.88%
• EPS Growth: -66.97%
• Country: US
• Employees: 32,700
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Steel
• EPS (TTM): 1.22
• Shares Outstanding: 230,746,140
• 10 Day Avg. Volume: 3,082,651
• 30 Day Avg. Volume: 3,167,467
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.92
• Price to Cash Flow (P/CF): 9.60
• P/FCF Ratio: 9.10
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.65
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $144.75
• Price Target Upside: 17.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Nucor's overall score reflects a stable financial and operational position with strong future demand indicated by backlog growth and positive earnings guidance. Financial performance shows operational efficiency but highlights the need to address declining revenue and cash flow concerns. Technical analysis suggests mixed signals, with recent momentum overshadowed by overbought indicators. Valuation is reasonable, supporting potential gains if earnings guidance materializes.

Positive Factors

Capital Returns

Capital returns are robust, with significant buybacks and dividends being returned to shareholders.

Earnings

Nucor's earnings are expected to see a meaningful increase driven by improved performance at its Steel Mills segment.

Financial Performance

Revenue of $7,830m was higher than the Visible Alpha consensus of $7,261m.

Negative Factors

Corporate and Tax Impacts

Higher corporate, administrative, and tax impacts are expected compared to the previous quarter.

Earnings Guidance

Shares are expected to underperform due to worse than expected guidance, especially compared to peers.

Steel Products Segment

Steel products segment earnings are anticipated to fall due to lower average selling prices.

Nucor Business Overview & Revenue Model

Company Description

Nucor 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 Money

Nucor 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 presents a stable financial profile with strong operational efficiency and a robust balance sheet. However, recent declines in revenue growth and profit margins highlight areas needing attention. The company maintains a conservative leverage position, which is a positive sign for financial health. While cash flow generation has faced headwinds, prudent management of capital expenditures could mitigate potential liquidity issues. Overall, Nucor remains well-positioned but should focus on reversing recent declines in profitability and cash flow strength.

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
	EBIT
2.98B	6.24B	10.52B	9.42B	1.60B
	EBITDA
4.49B	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

• Technical Analysis Sentiment: Neutral
• Last Price: 122.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 122.97 is above the 20-day moving average (MA) of 112.27, above the 50-day MA of 122.03, and below the 200-day MA of 136.07, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 92.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NUE.

Nucor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RS	78 Outperform	$15.63B	21.31	10.27%	1.51%	-5.60%	-35.05%
NUE	73 Outperform	$25.57B	13.10	6.54%	1.77%	-10.88%	-66.97%
MT	73 Outperform	$25.14B	18.03	2.60%	1.39%	-8.56%	68.36%
STLD	73 Outperform	$20.23B	17.84	13.08%	1.39%	-7.42%	-48.08%
PKX	71 Outperform	$13.17B	23.04	1.71%	3.50%	-9.88%	-46.96%
X	64 Neutral	$9.97B	28.18	0.86%	0.45%	-13.48%	-56.94%
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%

Nucor Corporate Events

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.

Spark’s Take on NUE Stock

According to Spark, TipRanks’ AI Analyst, NUE is a Outperform.

Nucor’s overall stock score reflects a combination of strong financial fundamentals and reasonable valuation, offset by technical challenges and sector-specific risks. The company’s positive earnings call highlights strategic growth initiatives and a robust shareholder return policy, which are significant positives. However, recent declines in key financial metrics and weak technical indicators suggest caution. The stock is positioned for potential upside with an expected improvement in market conditions, though current market sentiment remains cautious.

To see Spark’s full report on NUE stock, click here.