Steel DynamicsSTU:SD5 -3.09%90 Pretax Margin % is 9.86% as of Mar. 2026, which is 7% below its 10-year median of 10.55. GuruFocus rates STU:SD5 with a GF Score™ of 90/100 and a GF Value™ of €137.74 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 611 Steel companies, Steel Dynamics ranks better than 80.03% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Steel Dynamics Pretax Margin % Related Terms
Steel Dynamics Pretax Margin % Historical Data
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The historical data trend for Steel Dynamics's Pretax 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.
STU:SD5 vs RS, NUE, TX: Pretax Margin % Comparison
For the Steel subindustry, Steel Dynamics's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's Pretax 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 Pretax Margin % of 9.86% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Steel Dynamics and its competitors. This is near median its historical median of 10.55. Over the past decade, Steel Dynamics' Pretax Margin % has ranged from 7.25 to 22.86. According to the industry distribution chart, Steel Dynamics ranks #122 out of 611 companies in the Steel industry, placing it in the top 20%.
Is Steel Dynamics' Pretax Margin % too high?
Steel Dynamics' current Pretax Margin % of 9.86% is near median its 10-year median of 10.55. Over the past 10 years, this metric has ranged from a low of 7.25 to a high of 22.86. The Steel industry median Pretax Margin % is 2.58. Steel Dynamics' value of 9.86% is 282.2% above this industry median. Based on the distribution chart, Steel Dynamics ranks #122 out of 611 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 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Pretax Margin % compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #122 out of 611 companies for Pretax Margin %. This places Steel Dynamics in the top 20% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.58. Steel Dynamics' value of 9.86% is 282.2% above this benchmark. Historically, Steel Dynamics' own Pretax Margin % has ranged from 7.25 to 22.86 over the past decade. While the company's 10-year median is 10.55 vs. the industry median of 2.58, 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 Pretax Margin % for a Steel company?
The median Pretax Margin % among Steel companies is 2.58, based on 611 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current Pretax Margin % of 9.86% is 282.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Steel Dynamics and its competitors. For the Steel industry, the median Pretax Margin % is 2.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current Pretax Margin % is 9.86%, which is near median its own 10-year median of 10.55. 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 €137.74, compared to a current price of €194.40 — trading 41.1% above its estimated fair value. The current Pretax Margin % is 9.86%, which is near median its 10-year median of 10.55 and 282.2% above the Steel industry median of 2.58. Steel Dynamics' overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Steel Dynamics (STU:SD5), the current Pretax Margin % is 9.86% 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 €194.40 is trading 41.1% above its estimated GF Value™ of €137.74.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STU:SD5:
Pretax Margin %: 9.86% (near median its 10-year median of 10.55)
GF Value™: €137.74 vs. price of €194.40 (41.1% above fair value)
Industry Position: 282.2% above the Steel median (#122 of 611)
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.
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