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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Steel Dynamics's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -82.88%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Steel Dynamics's 3-Year ROIIC % or its related term are showing as below:
STLD's 3-Year ROIIC % is ranked worse than 89.75% of 605
companies
in the Steel industry
Industry Median: -0.23
vs STLD: -82.88
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Steel Dynamics 3-Year ROIIC % Related Terms
Steel Dynamics 3-Year ROIIC % Historical Data
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The historical data trend for Steel Dynamics's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Steel Dynamics (STLD) has a 3-Year ROIIC % of -82.88 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Steel Dynamics and its competitors. According to the industry distribution chart, Steel Dynamics ranks #543 out of 605 companies in the Steel industry, placing it in the top 89.8%.
Is Steel Dynamics' 3-Year ROIIC % too high?
Steel Dynamics' current 3-Year ROIIC % is -82.88. Based on the distribution chart, Steel Dynamics ranks #543 out of 605 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Steel Dynamics has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' 3-Year ROIIC % compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #543 out of 605 companies for 3-Year ROIIC %. This places Steel Dynamics in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Steel company?
A good 3-Year ROIIC % depends on the Steel industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Steel Dynamics and its competitors. Steel Dynamics's current 3-Year ROIIC % is -82.88. 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 (STLD) is currently considered Significantly Overvalued. The stock's GF Value™ is $158.87, compared to a current price of $233.52 — trading 47% above its estimated fair value. The current 3-Year ROIIC % is -82.88. Steel Dynamics' overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Steel Dynamics (STLD), the current 3-Year ROIIC % is -82.88 as of Dec. 2025. 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 (STLD) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Dynamics stock appears to be overvalued.
The current stock price of $233.52 is trading 47% above its estimated GF Value™ of $158.87.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STLD:
3-Year ROIIC %: -82.88
GF Value™: $158.87 vs. price of $233.52 (47% above fair value)
No single metric tells the full story. See the 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.
88GF Score
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