Steel DynamicsSTU:SD5 -2.50%86 ROA % is 9.80% as of Mar. 2026, which is 13% below its 10-year median of 11.27. GuruFocus rates STU:SD5 with a GF Score™ of 86/100 and a GF Value™ of €136.99 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 635 Steel companies, Steel Dynamics ranks better than 88.19% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Steel Dynamics's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,396 Mil.
Steel Dynamics's average Total Assets over the quarter that ended in Mar. 2026 was €14,243 Mil. Therefore, Steel Dynamics's annualized ROA % for the quarter that ended in Mar. 2026 was 9.80%.
The historical rank and industry rank for Steel Dynamics's ROA % or its related term are showing as below:
STU:SD5'
s ROA % Range Over the Past 10 Years
Min: 6.05 Med: 11.27 Max: 29.49
Current: 8.51
During the past 13 years, Steel Dynamics's highest ROA % was 29.49%. The lowest was 6.05%. And the median was 11.27%.
STU:SD5's ROA % is ranked better than 88.19% of 635
companies
in the Steel industry
Industry Median: 1.88
vs STU:SD5: 8.51
Steel Dynamics (STU:SD5) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Steel Dynamics ROA % Related Terms
Steel Dynamics ROA % Historical Data
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The historical data trend for Steel Dynamics's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's ROA % distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Steel Dynamics (STU:SD5) has a ROA % of 9.80% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Steel Dynamics and its competitors. This is 13% below median its historical median of 11.27. Over the past decade, Steel Dynamics' ROA % has ranged from 6.05 to 29.49. According to the industry distribution chart, Steel Dynamics ranks #75 out of 635 companies in the Steel industry, placing it in the top 11.8%.
Is Steel Dynamics' ROA % too high?
Steel Dynamics' current ROA % of 9.80% is 13% below median its 10-year median of 11.27. Over the past 10 years, this metric has ranged from a low of 6.05 to a high of 29.49. The Steel industry median ROA % is 1.88. Steel Dynamics' value of 9.80% is 421.3% above this industry median. Based on the distribution chart, Steel Dynamics ranks #75 out of 635 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' ROA % compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #75 out of 635 companies for ROA %. This places Steel Dynamics in the top 12% of its industry — outperforming the majority of peers. The industry median ROA % is 1.88. Steel Dynamics' value of 9.80% is 421.3% above this benchmark. Historically, Steel Dynamics' own ROA % has ranged from 6.05 to 29.49 over the past decade. While the company's 10-year median is 11.27 vs. the industry median of 1.88, 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 ROA % for a Steel company?
The median ROA % among Steel companies is 1.88, based on 635 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current ROA % of 9.80% is 421.3% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Steel Dynamics and its competitors. For the Steel industry, the median ROA % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current ROA % is 9.80%, which is 13% below median its own 10-year median of 11.27. 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 €136.99, compared to a current price of €214.80 — trading 56.8% above its estimated fair value. The current ROA % is 9.80%, which is 13% below median its 10-year median of 11.27 and 421.3% above the Steel industry median of 1.88. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Steel Dynamics (STU:SD5), the current ROA % is 9.80% 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 €214.80 is trading 56.8% above its estimated GF Value™ of €136.99.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STU:SD5:
ROA %: 9.80% (13% below median its 10-year median of 11.27)
GF Value™: €136.99 vs. price of €214.80 (56.8% above fair value)
Industry Position: 421.3% above the Steel median (#75 of 635)
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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