Steel DynamicsSTU:SD5 +3.72%86 Net Margin % is 7.75% as of Mar. 2026, which is 10% below its 10-year median of 8.64. GuruFocus rates STU:SD5 with a GF Score™ of 86/100 and a GF Value™ of €137.36 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 615 Steel companies, Steel Dynamics ranks better than 80.49% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Steel Dynamics's Net Income for the
three
months ended in Mar. 2026 was €349 Mil. Steel Dynamics's Revenue for the
three
months ended in Mar. 2026 was €4,502 Mil. Therefore, Steel Dynamics's net margin for the quarter that ended in Mar. 2026 was 7.75%.
The historical rank and industry rank for Steel Dynamics's Net Margin % or its related term are showing as below:
STU:SD5'
s Net Margin % Range Over the Past 10 Years
Min: 4.91 Med: 8.64 Max: 17.46
Current: 7.22
STU:SD5's Net Margin % is ranked better than 80.49% of 615
companies
in the Steel industry
Industry Median: 1.86
vs STU:SD5: 7.22
Steel Dynamics (STU:SD5) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Steel Dynamics Net Margin % Related Terms
Steel Dynamics Net Margin % Historical Data
* Premium members only.
The historical data trend for Steel Dynamics's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's Net Margin % distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's Net 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.
Steel Dynamics (STU:SD5) has a Net Margin % of 7.75% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Steel Dynamics and its competitors. This is 10% below median its historical median of 8.64. Over the past decade, Steel Dynamics' Net Margin % has ranged from 4.91 to 17.46. According to the industry distribution chart, Steel Dynamics ranks #120 out of 615 companies in the Steel industry, placing it in the top 19.5%.
Is Steel Dynamics' Net Margin % too high?
Steel Dynamics' current Net Margin % of 7.75% is 10% below median its 10-year median of 8.64. Over the past 10 years, this metric has ranged from a low of 4.91 to a high of 17.46. The Steel industry median Net Margin % is 1.86. Steel Dynamics' value of 7.75% is 316.7% above this industry median. Based on the distribution chart, Steel Dynamics ranks #120 out of 615 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 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Net Margin % compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #120 out of 615 companies for Net Margin %. This places Steel Dynamics in the top 20% of its industry — outperforming the majority of peers. The industry median Net Margin % is 1.86. Steel Dynamics' value of 7.75% is 316.7% above this benchmark. Historically, Steel Dynamics' own Net Margin % has ranged from 4.91 to 17.46 over the past decade. While the company's 10-year median is 8.64 vs. the industry median of 1.86, 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 Net Margin % for a Steel company?
The median Net Margin % among Steel companies is 1.86, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current Net Margin % of 7.75% is 316.7% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Steel Dynamics and its competitors. For the Steel industry, the median Net Margin % is 1.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current Net Margin % is 7.75%, which is 10% below median its own 10-year median of 8.64. 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 €137.36, compared to a current price of €220.30 — trading 60.4% above its estimated fair value. The current Net Margin % is 7.75%, which is 10% below median its 10-year median of 8.64 and 316.7% above the Steel industry median of 1.86. Steel Dynamics' overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Steel Dynamics (STU:SD5), the current Net Margin % is 7.75% 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 €220.30 is trading 60.4% above its estimated GF Value™ of €137.36.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STU:SD5:
Net Margin %: 7.75% (10% below median its 10-year median of 8.64)
GF Value™: €137.36 vs. price of €220.30 (60.4% above fair value)
Industry Position: 316.7% above the Steel median (#120 of 615)
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.
86GF Score
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