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Steel DynamicsMEX:STLD 75 Return-on-Tangible-Asset is 10.24% as of Mar. 2026, which is 16% below its 10-year median of 12.21. GuruFocus rates MEX:STLD with a GF Score™ of 75/100 and a GF Value™ of MXN2,834.69 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 634 Steel companies, Steel Dynamics ranks better than 89.43% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Steel Dynamics's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN29,100 Mil. Steel Dynamics's average total tangible assets for the quarter that ended in Mar. 2026 was MXN284,077 Mil. Therefore, Steel Dynamics's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 10.24%.
The historical rank and industry rank for Steel Dynamics's Return-on-Tangible-Asset or its related term are showing as below:
MEX:STLD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.78 Med: 12.21 Max: 31.72
Current: 8.92
During the past 13 years, Steel Dynamics's highest Return-on-Tangible-Asset was 31.72%. The lowest was 6.78%. And the median was 12.21%.
MEX:STLD's Return-on-Tangible-Asset is ranked better than 89.43% of 634
companies
in the Steel industry
Industry Median: 2.015
vs MEX:STLD: 8.92
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Steel Dynamics Return-on-Tangible-Asset Related Terms
Steel Dynamics Return-on-Tangible-Asset Historical Data
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The historical data trend for Steel Dynamics's Return-on-Tangible-Asset 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.
MEX:STLD vs RS, NUE, TX: Return-on-Tangible-Asset Comparison
For the Steel subindustry, Steel Dynamics's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 10.24% mean?
Steel Dynamics (MEX:STLD) has a Return-on-Tangible-Asset of 10.24% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Steel Dynamics and its competitors. This is 16% below median its historical median of 12.21. Over the past decade, Steel Dynamics' Return-on-Tangible-Asset has ranged from 6.78 to 31.72. According to the industry distribution chart, Steel Dynamics ranks #67 out of 634 companies in the Steel industry, placing it in the top 10.6%.
Is Steel Dynamics' Return-on-Tangible-Asset too high?
Steel Dynamics' current Return-on-Tangible-Asset of 10.24% is 16% below median its 10-year median of 12.21. Over the past 10 years, this metric has ranged from a low of 6.78 to a high of 31.72. The Steel industry median Return-on-Tangible-Asset is 2.02. Steel Dynamics' value of 10.24% is 408.2% above this industry median. Based on the distribution chart, Steel Dynamics ranks #67 out of 634 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 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Return-on-Tangible-Asset compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #67 out of 634 companies for Return-on-Tangible-Asset. This places Steel Dynamics in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.02. Steel Dynamics' value of 10.24% is 408.2% above this benchmark. Historically, Steel Dynamics' own Return-on-Tangible-Asset has ranged from 6.78 to 31.72 over the past decade. While the company's 10-year median is 12.21 vs. the industry median of 2.02, 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 Return-on-Tangible-Asset for a Steel company?
The median Return-on-Tangible-Asset among Steel companies is 2.02, based on 634 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current Return-on-Tangible-Asset of 10.24% is 408.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Steel Dynamics and its competitors. For the Steel industry, the median Return-on-Tangible-Asset is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current Return-on-Tangible-Asset is 10.24%, which is 16% below median its own 10-year median of 12.21. 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 (MEX:STLD) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,834.69, compared to a current price of MXN4,107.96 — trading 44.9% above its estimated fair value. The current Return-on-Tangible-Asset is 10.24%, which is 16% below median its 10-year median of 12.21 and 408.2% above the Steel industry median of 2.02. Steel Dynamics' overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Steel Dynamics (MEX:STLD), the current Return-on-Tangible-Asset is 10.24% 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 (MEX:STLD) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Dynamics stock appears to be overvalued.
The current stock price of MXN4,107.96 is trading 44.9% above its estimated GF Value™ of MXN2,834.69.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for MEX:STLD:
Return-on-Tangible-Asset: 10.24% (16% below median its 10-year median of 12.21)
GF Value™: MXN2,834.69 vs. price of MXN4,107.96 (44.9% above fair value)
Industry Position: 408.2% above the Steel median (#67 of 634)
No single metric tells the full story. See the MEX:STLD 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.
75GF Score
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