The historical rank and industry rank for Steel Dynamics's Gross Margin % or its related term are showing as below:
STLD'
s Gross Margin % Range Over the Past 10 Years
Min: 9.63 Med: 16.88 Max: 29.13
Current: 15.98
During the past 13 years, the highestGross Margin % of Steel Dynamics was 29.13%. The lowest was 9.63%. And the median was 16.88%.
STLD's Gross Margin % is ranked better than 63.32% of 597
companies
in the Steel industry
Industry Median: 12.03
vs STLD: 15.98
Steel Dynamics had a gross margin of 11.41% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Steel Dynamics was 4.30% per year.
Steel Dynamics Gross Margin % Historical Data
The historical data trend for Steel Dynamics's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Steel Dynamics's Gross Margin %
For the Steel subindustry, Steel Dynamics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Steel Dynamics's Gross Margin % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Steel Dynamics had a gross margin of 11.41% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Steel Dynamics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Steel Dynamics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Steel Dynamics Inc operates as a domestic steel producer and metal recycler in the United States. The company's product portfolio comprises hot rolled sheet, hot rolled plate, painted sheet products, cold rolled sheet, and others. Its reportable segments are steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. Maximum revenue is generated from its steel operations segment, which consists of manufacturing various steel products and numerous coating operations. Its primary sources of revenue are currently from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products.
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