Nucor Corp
NUE
Steel Works, Blast Furnaces & Rolling Mills (Coke Ovens)
Mkt Cap
$40.41BPE
8.12Debt
$6.657BCash
$5.856BEV
$41.21BFCF
$6.111BP/E Ratio
8.12Debt
$6.657BCash
$5.856BEV
$41.21BFCF
$6.111BNucor Corporation engages in manufacture and sale of 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 engineered 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. 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. The company was founded in 1905 and is headquartered in Charlotte, North Carolina.
DCF
Discounted Cash Flow Valuation of Nucor Corp
Value
Growth
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Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $6.111B | $7.588B | $9.26B | $11.1B | $13.08B | $15.12B | $17.17B | $19.12B | $20.89B | $22.38B | $23.5B | $235B |
| DCF | $6.598B | $7.002B | $7.3B | $7.476B | $7.518B | $7.422B | $7.188B | $6.83B | $6.362B | $5.809B | $58.09B | |
| Value | $127.6B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 35%
Earnings Stability 63%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 3.4% | 2.2% | 4.9% | 6.5% | 9.4% | 5.6% | 3.6% | 19% | 18% | 14% |
| ROA | 7.7% | 5% | 8.5% | 11% | 18% | 9.7% | 4.2% | 36% | 32% | 20% |
| ROE | 8.8% | 4.6% | 9.6% | 14% | 23% | 12% | 6.4% | 47% | 39% | 23% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +10.32%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.41%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +18.35%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +4.28%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +23.48%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +5.32%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 6.79 | 2.47 | 4.33 | 6.17 | 3.04 | 3.27 | 4.62 | 1.21 | 0.82 | 1.09 |
| Debt Equity | 0.57 | 0.57 | 0.60 | 0.41 | 0.42 | 0.40 | 0.47 | 0.38 | 0.34 | 0.31 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 85% | 44% | 100% | 100% | 44% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.09.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.88.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.44.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 14% | 15% | 22% | 14% | 4.5% |
| Net Income | 55% | 42% | 82% | 11% | 35% |
| Stockholders Equity | 14% | 17% | 22% | 34% | 3.7% |
| FCF | 24% | 68% | 83% | 76% | 12% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +15.44%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +4.47%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +41.96%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +35.15%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +16.59%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +3.67%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +68.02%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +12.19%.