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Steel DynamicsSTU:SD5 -0.83%84 Return-on-Tangible-Equity is 19.67% as of Mar. 2026, which is 25% below its 10-year median of 26.10. GuruFocus rates STU:SD5 with a GF Score™ of 84/100 and a GF Value™ of €138.50 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 615 Steel companies, Steel Dynamics ranks better than 89.11% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Steel Dynamics's annualized net income for the quarter that ended in Mar. 2026 was €1,396 Mil. Steel Dynamics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €7,097 Mil. Therefore, Steel Dynamics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.67%.
The historical rank and industry rank for Steel Dynamics's Return-on-Tangible-Equity or its related term are showing as below:
STU:SD5'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.48 Med: 26.1 Max: 70.49
Current: 16.68
During the past 13 years, Steel Dynamics's highest Return-on-Tangible-Equity was 70.49%. The lowest was 14.48%. And the median was 26.10%.
STU:SD5's Return-on-Tangible-Equity is ranked better than 89.11% of 615
companies
in the Steel industry
Industry Median: 3.97
vs STU:SD5: 16.68
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Steel Dynamics Return-on-Tangible-Equity Related Terms
Steel Dynamics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Steel Dynamics's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Steel subindustry, Steel Dynamics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.67% mean?
Steel Dynamics (STU:SD5) has a Return-on-Tangible-Equity of 19.67% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Steel Dynamics and its competitors. This is 25% below median its historical median of 26.10. Over the past decade, Steel Dynamics' Return-on-Tangible-Equity has ranged from 14.48 to 70.49. According to the industry distribution chart, Steel Dynamics ranks #67 out of 615 companies in the Steel industry, placing it in the top 10.9%.
Is Steel Dynamics' Return-on-Tangible-Equity too high?
Steel Dynamics' current Return-on-Tangible-Equity of 19.67% is 25% below median its 10-year median of 26.10. Over the past 10 years, this metric has ranged from a low of 14.48 to a high of 70.49. The Steel industry median Return-on-Tangible-Equity is 3.97. Steel Dynamics' value of 19.67% is 395.5% above this industry median. Based on the distribution chart, Steel Dynamics ranks #67 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 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Return-on-Tangible-Equity compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #67 out of 615 companies for Return-on-Tangible-Equity. This places Steel Dynamics in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 3.97. Steel Dynamics' value of 19.67% is 395.5% above this benchmark. Historically, Steel Dynamics' own Return-on-Tangible-Equity has ranged from 14.48 to 70.49 over the past decade. While the company's 10-year median is 26.10 vs. the industry median of 3.97, 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-Equity for a Steel company?
The median Return-on-Tangible-Equity among Steel companies is 3.97, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current Return-on-Tangible-Equity of 19.67% is 395.5% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Steel Dynamics and its competitors. For the Steel industry, the median Return-on-Tangible-Equity is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current Return-on-Tangible-Equity is 19.67%, which is 25% below median its own 10-year median of 26.10. 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 €138.50, compared to a current price of €205.20 — trading 48.2% above its estimated fair value. The current Return-on-Tangible-Equity is 19.67%, which is 25% below median its 10-year median of 26.10 and 395.5% above the Steel industry median of 3.97. Steel Dynamics' overall GF Score™ is 84/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Steel Dynamics (STU:SD5), the current Return-on-Tangible-Equity is 19.67% 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 €205.20 is trading 48.2% above its estimated GF Value™ of €138.50.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STU:SD5:
Return-on-Tangible-Equity: 19.67% (25% below median its 10-year median of 26.10)
GF Value™: €138.50 vs. price of €205.20 (48.2% above fair value)
Industry Position: 395.5% above the Steel median (#67 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.
84GF Score
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