NUE : NYSE : Basic Materials
$63.03 | %
Today's Range: 61.67 - 63.05
Avg. Daily Volume: 3151900.0
12/02/16 - 4:00 PM ET

Financial Analysis


NUCOR CORP's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. NUCOR CORP is extremely liquid. Currently, the Quick Ratio is 2.22 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)4290.244225.51
EBITDA ($mil)646.71580.69
EBIT ($mil)475.21407.2
Net Income ($mil)270.04227.13


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2354.711995.43
Total Assets ($mil)15113.6815269.47
Total Debt ($mil)4368.144436.8
Equity ($mil)7727.257709.09


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin18.5516.5
EBITDA Margin15.0713.74
Operating Margin11.089.64
Sales Turnover1.041.18
Return on Assets3.394.12
Return on Equity6.638.17
Debt Q3 FY16 Q3 FY15
Current Ratio3.533.5
Debt/Capital0.360.37
Interest Expense47.3746.41
Interest Coverage10.038.77


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)318.49319.62
Div / share0.380.37
EPS0.840.71
Book value / share24.2624.12
Institutional Own % n/a n/a
Avg Daily Volume3057479.02757148.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 422.61 for the Metals & Mining industry and a significant premium compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 2.45 indicates a discount versus the S&P 500 average of 2.79 and a premium versus the industry average of 1.84. 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 37.16 Peers 422.61   NUE 11.97 Peers 10.59

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.

 

Premium. 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 premium 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 19.82 Peers 27.71   NUE 0.33 Peers 0.96

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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

 

Discount. 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NUE 2.45 Peers 1.84   NUE -18.37 Peers -72.11

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 significant premium to its peers.

 

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

NUE is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NUE 1.21 Peers 2.88   NUE -12.67 Peers -11.17

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

NUE significantly trails its peers on the basis of sales growth

 

 

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