NUE : NYSE : Basic Materials
$62.82 up 2.0 | 3.2%
Today's Range: 61.03 - 63.12
Avg. Daily Volume: 3227400.0
02/27/17 - 1:41 PM ET

Financial Analysis


NUCOR CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. NUCOR CORP has strong liquidity. Currently, the Quick Ratio is 1.60 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 6.24% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)3956.543456.71
EBITDA ($mil)461.22468.75
EBIT ($mil)287.34293.64
Net Income ($mil)159.64-62.02


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2195.962039.47
Total Assets ($mil)15223.5214250.4
Total Debt ($mil)4357.14432.92
Equity ($mil)7879.877416.88


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin15.616.14
EBITDA Margin11.6513.56
Operating Margin7.268.49
Sales Turnover1.061.15
Return on Assets4.822.5
Return on Equity9.314.82
Debt Q4 FY16 Q4 FY15
Current Ratio2.724.15
Debt/Capital0.360.37
Interest Expense0.043.13
Interest Coverage0.06.81


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)318.49317.96
Div / share0.380.38
EPS0.5-0.19
Book value / share24.7423.33
Institutional Own % n/a n/a
Avg Daily Volume3165406.03109946.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 106.27 for the Metals & Mining industry and a value on par with the S&P 500 average of 26.53. Conducting a second comparison, its price-to-book ratio of 2.46 indicates a discount versus the S&P 500 average of 2.96 and a premium versus the industry average of 2.01. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, NUCOR CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NUE 26.59 Peers 106.27   NUE 11.16 Peers 11.58

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

NUE is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

NUE is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NUE 15.11 Peers 22.90   NUE 0.66 Peers 0.62

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

NUE is trading at a discount to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

NUE trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NUE 2.46 Peers 2.01   NUE 104.46 Peers 134.79

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NUE is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, NUE is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NUE 1.20 Peers 3.22   NUE -1.41 Peers -5.55

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

NUE is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

NUE has a sales growth rate that significantly exceeds its peers.

 

 

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