Steel DynamicsSTU:SD5 -1.91%87 Gross Margin % is 14.66% as of Mar. 2026, which is 13% below its 10-year median of 16.88. GuruFocus rates STU:SD5 with a GF Score™ of 87/100 and a GF Value™ of €137.26 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 593 Steel companies, Steel Dynamics ranks better than 53.79% on this metric.
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 14.66% for the quarter that ended in Mar. 2026 => 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
Steel Dynamics Gross Margin % Historical Data
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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.
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 Gross Margin % vs 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.
Steel Dynamics (STU:SD5) has a Gross Margin % of 14.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Steel Dynamics and its competitors. This is 13% below median its historical median of 16.88. Over the past decade, Steel Dynamics' Gross Margin % has ranged from 13.16 to 29.13. According to the industry distribution chart, Steel Dynamics ranks #274 out of 593 companies in the Steel industry, placing it in the top 46.2%.
Is Steel Dynamics' Gross Margin % too high?
Steel Dynamics' current Gross Margin % of 14.66% is 13% below median its 10-year median of 16.88. Over the past 10 years, this metric has ranged from a low of 13.16 to a high of 29.13. The Steel industry median Gross Margin % is 12.60. Steel Dynamics' value of 14.66% is 16.3% above this industry median. Based on the distribution chart, Steel Dynamics ranks #274 out of 593 companies in the Steel industry, which is above the industry midpoint. Overall, Steel Dynamics has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Gross Margin % compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #274 out of 593 companies for Gross Margin %. This puts Steel Dynamics in the upper half of its industry. The industry median Gross Margin % is 12.60. Steel Dynamics' value of 14.66% is 16.3% above this benchmark. Historically, Steel Dynamics' own Gross Margin % has ranged from 13.16 to 29.13 over the past decade. While the company's 10-year median is 16.88 vs. the industry median of 12.60, Steel Dynamics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current Gross Margin % of 14.66% is 16.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Steel Dynamics and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current Gross Margin % is 14.66%, which is 13% below median its own 10-year median of 16.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steel Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Steel Dynamics (STU:SD5) is currently considered Significantly Overvalued. The stock's GF Value™ is €137.26, compared to a current price of €200.60 — trading 46.1% above its estimated fair value. The current Gross Margin % is 14.66%, which is 13% below median its 10-year median of 16.88 and 16.3% above the Steel industry median of 12.60. Steel Dynamics' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Steel Dynamics (STU:SD5), the current Gross Margin % is 14.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Steel Dynamics (STU:SD5) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Dynamics stock appears to be overvalued.
The current stock price of €200.60 is trading 46.1% above its estimated GF Value™ of €137.26.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STU:SD5:
Gross Margin %: 14.66% (13% below median its 10-year median of 16.88)
GF Value™: €137.26 vs. price of €200.60 (46.1% above fair value)
Industry Position: 16.3% above the Steel median (#274 of 593)
No single metric tells the full story. See the STU:SD5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
87GF Score
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