Steel Dynamics (STU:SD5) ROCE %: 15.25% (As of Mar. 2026)


STU:SD5 Steel Dynamics Inc STU:SD5
86 GF Score
Price €214.80
GF Value €136.99
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Steel Dynamics ROCE %?

Steel Dynamics STU:SD5 -2.50% 86 ROCE % is 15.25% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Steel Dynamics's annualized ROCE % for the quarter that ended in Mar. 2026 was 15.25%.

Steel Dynamics  (STU:SD5) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Steel Dynamics ROCE % Related Terms

Steel Dynamics ROCE % Historical Data

* Premium members only.

The historical data trend for Steel Dynamics's ROCE % 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.

Steel Dynamics ROCE % Chart

Steel Dynamics Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 48.10 46.93 26.30 16.41 10.93

Steel Dynamics Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.72 11.45 15.08 9.55 15.25
STU:SD5
86GF Score
Steel Dynamics Inc STU:SD5
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Steel Dynamics ROCE % Calculation

Steel Dynamics's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=1334.814/( ( (14263.148 - 2053.807) + (14022.492 - 1812.405) )/ 2 )
=1334.814/( (12209.341+12210.087)/ 2 )
=1334.814/12209.714
=10.93 %

Steel Dynamics's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1890.732/( ( (14022.492 - 1812.405) + (14462.989 - 1877.672) )/ 2 )
=1890.732/( ( 12210.087 + 12585.317 )/ 2 )
=1890.732/12397.702
=15.25 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 15.25% mean?
Steel Dynamics (STU:SD5) has a ROCE % of 15.25% as of Mar. 2026.
Is Steel Dynamics' ROCE % too high?
Steel Dynamics' current ROCE % is 15.25%. The Steel industry median ROCE % is 5.63. Steel Dynamics' value of 15.25% is 171.1% above this industry median. 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' ROCE % compare to RS and NUE?
Steel Dynamics' ROCE % of 15.25% can be compared against companies in the Steel industry. The industry median ROCE % is 5.63. Steel Dynamics' value of 15.25% is 171.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Steel company?
The median ROCE % among Steel companies is 5.63, based on 624 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current ROCE % of 15.25% is 171.1% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Steel industry, the median ROCE % is 5.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current ROCE % is 15.25%. 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 ROCE % is 15.25% and 171.1% above the Steel industry median of 5.63. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Steel Dynamics (STU:SD5), the current ROCE % is 15.25% 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:

  • ROCE %: 15.25%
  • GF Value™: €136.99 vs. price of €214.80 (56.8% above fair value)
  • GF Score™: 86/100 with 4 warning signs
  • Industry Position: 171.1% above the Steel median

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 Business Description

Address 7575 West Jefferson Boulevard, Fort Wayne, IN, USA, 46804
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

Get the complete analysis for STU:SD5

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€214.80
Price
€136.99
GF Value