Aureus
FRed Flag

Steel Dynamics, Inc.(STLD)

F

Financial data as of Dec 31, 2025Improving · Materials

FCF Margin2.8%Free Cash Flow / Revenue
Cash Conversion122.3%Operating CF / Net Income
Free Cash Flow$501.5M
Revenue$18.2B
Net Cash-$3.4BNet debt position
Debt / FCF8.4xElevated debt burden
Current Ratio3.06Adequate short-term liquidity
YoY FCF Growth+100.0%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1High debt-to-FCF ratio (8.4x)
→
+1Strong YoY FCF growth (100.0% YoY)
→
-0.5Highly volatile FCF (consistency: 3.20)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (122%)
  • Strong liquidity (current ratio: 3.06)
  • Strong YoY FCF growth (+100.0%)

Concerns

  • Low FCF margin (2.8%)
  • Heavy debt position ($3.4B net debt, 8.4x FCF)
  • High debt-to-FCF ratio (8.4x)
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin2.8%
Net Margin6.5%
Operating CF Margin8.0%
CapEx Ratio5.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$3.4BNet debt position
Debt / FCF8.4xElevated debt burden
Current Ratio3.06Strong liquidity
Debt / Equity0.47Low leverage

Quarterly FCF Trend

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameSteel Dynamics, Inc.
SectorMaterials
Free Cash Flow$501.5M
Revenue$18.2B
Net Income$1.2B
Operating Cash Flow$1.4B
Capital Expenditure$948.0M
FCF Margin2.8%
Cash Conversion Rate122.3%
Net Margin6.5%
Total Debt$4.2B
Total Cash$769.9M
Net Cash-$3.4B
Current Ratio3.06
Debt / Equity0.47
Debt / FCF8.4x
YoY FCF Growth+100.0%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance