Steel Works, Blast Furnaces & Rolling Mills (Coke Ovens)
Nucor 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.
Discounted Cash Flow Valuation of Nucor Corp
In the chart Earnings are multiplied by this value.
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.
The average Net Margin over the past 5 years is +10.32%.
The trend of Net Margin over the past 5 years is +2.41%.
The average ROA over the past 5 years is +18.35%.
The trend of ROA over the past 5 years is +4.28%.
The average ROE over the past 5 years is +23.48%.
The trend of ROE over the past 5 years is +5.32%.
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.
The Debt/FCF trailing twelve month is 1.09.
The trend of Debt/FCF over the past 5 years is -0.88.
Graham’s Stability measure stands at 0.44.
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.
The Revenue CAGR over the past 5 years is +15.44%.
The trend of Revenue growth rate over the past 5 years is +4.47%.
The Earnings CAGR over the past 5 years is +41.96%.
The trend of Earnings growth rate over the past 5 years is +35.15%.
The Equity CAGR over the past 5 years is +16.59%.
The trend of Equity growth rate over the past 5 years is +3.67%.
The FCF CAGR over the past 5 years is +68.02%.
The trend of FCF growth rate over the past 5 years is +12.19%.