Steel Dynamics (STU:SD5) Moat Score: 5/10 (As of Jul. 08, 2026)


STU:SD5 Steel Dynamics Inc STU:SD5
82 GF Score
Price €201.20
GF Value €138.16
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Steel Dynamics Moat Score?

Steel Dynamics STU:SD5 +1.51% 82 Moat Score is 5 as of Jul. 08, 2026. GuruFocus rates STU:SD5 with a GF Score™ of 82/100 and a GF Value™ of €138.16 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 643 Steel companies, Steel Dynamics ranks better than 98.6% on this metric.

Steel Dynamics has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Steel Dynamics has Narrow Moat: Steel Dynamics Inc has a solid narrow moat due to its cost advantages from efficient production processes and economies of scale. However, the cyclical nature of the steel industry and competition limit its ability to achieve a wider moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Steel Dynamics might have Narrow Moat - Solid narrow moat.

Steel Dynamics  (STU:SD5) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Steel Dynamics Moat Score Related Terms

STU:SD5 vs RS, NUE, TX: Moat Score Comparison

For the Steel subindustry, Steel Dynamics's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Steel Industry

For the Steel industry and Basic Materials sector, Steel Dynamics's Moat Score distribution charts can be found below:

* The bar in red indicates where Steel Dynamics's Moat Score falls into.


STU:SD5
82GF Score
Steel Dynamics Inc STU:SD5
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Steel Dynamics (STU:SD5) has a Moat Score of 5 as of Jul. 08, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Steel Dynamics ranks #9 out of 643 companies in the Steel industry, placing it in the top 1.4%.
Is Steel Dynamics' Moat Score too high?
Steel Dynamics' current Moat Score is 5. Based on the distribution chart, Steel Dynamics ranks #9 out of 643 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Steel Dynamics has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Moat Score compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #9 out of 643 companies for Moat Score. This places Steel Dynamics in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Steel company?
A good Moat Score depends on the Steel industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Steel Dynamics's current Moat Score is 5. 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 €138.16, compared to a current price of €201.20 — trading 45.6% above its estimated fair value. The current Moat Score is 5. Steel Dynamics' overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Steel Dynamics (STU:SD5), the current Moat Score is 5 as of Jul. 08, 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 €201.20 is trading 45.6% above its estimated GF Value™ of €138.16. GuruFocus considers Steel Dynamics to be Significantly Overvalued.

Key valuation signals for STU:SD5:

  • Moat Score: 5
  • GF Value™: €138.16 vs. price of €201.20 (45.6% above fair value)
  • GF Score™: 82/100 with 4 warning signs

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 Business Description

Address 7575 West Jefferson Boulevard, Fort Wayne, IN, USA, 46804
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.
82GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€201.20
Price
€138.16
GF Value