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Steel DynamicsMEX:STLD 75 5-Year Yield-on-Cost % is 1.93 as of Jul. 21, 2026, which is 42% below its 10-year median of 3.35. 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 319 Steel companies, Steel Dynamics ranks worse than 65.2% on this metric.
Steel Dynamics's yield on cost for the quarter that ended in Mar. 2026 was 1.93.
The historical rank and industry rank for Steel Dynamics's 5-Year Yield-on-Cost % or its related term are showing as below:
MEX:STLD'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.56 Med: 3.35 Max: 11.04
Current: 1.93
During the past 13 years, Steel Dynamics's highest Yield on Cost was 11.04. The lowest was 1.56. And the median was 3.35.
MEX:STLD's 5-Year Yield-on-Cost % is ranked worse than 65.2% of 319
companies
in the Steel industry
Industry Median: 3.28
vs MEX:STLD: 1.93
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Steel Dynamics 5-Year Yield-on-Cost % Related Terms
MEX:STLD vs RS, NUE, TX: 5-Year Yield-on-Cost % Comparison
For the Steel subindustry, Steel Dynamics's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Steel Dynamics is calculated as
Steel Dynamics (MEX:STLD) has a 5-Year Yield-on-Cost % of 1.93 as of Jul. 21, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Steel Dynamics and its competitors. This is 42% below median its historical median of 3.35. Over the past decade, Steel Dynamics' 5-Year Yield-on-Cost % has ranged from 1.56 to 11.04. According to the industry distribution chart, Steel Dynamics ranks #208 out of 319 companies in the Steel industry, placing it in the top 65.2%.
Is Steel Dynamics' 5-Year Yield-on-Cost % too high?
Steel Dynamics' current 5-Year Yield-on-Cost % of 1.93 is 42% below median its 10-year median of 3.35. Over the past 10 years, this metric has ranged from a low of 1.56 to a high of 11.04. The Steel industry median 5-Year Yield-on-Cost % is 3.28. Steel Dynamics' value of 1.93 is 41.2% below this industry median. Based on the distribution chart, Steel Dynamics ranks #208 out of 319 companies in the Steel industry, which is below the industry midpoint. 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' 5-Year Yield-on-Cost % compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #208 out of 319 companies for 5-Year Yield-on-Cost %. This places Steel Dynamics in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.28. Steel Dynamics' value of 1.93 is 41.2% below this benchmark. Historically, Steel Dynamics' own 5-Year Yield-on-Cost % has ranged from 1.56 to 11.04 over the past decade. While the company's 10-year median is 3.35 vs. the industry median of 3.28, Steel Dynamics has consistently been below 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 5-Year Yield-on-Cost % for a Steel company?
The median 5-Year Yield-on-Cost % among Steel companies is 3.28, based on 319 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current 5-Year Yield-on-Cost % of 1.93 is 41.2% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Steel Dynamics and its competitors. For the Steel industry, the median 5-Year Yield-on-Cost % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current 5-Year Yield-on-Cost % is 1.93, which is 42% below median its own 10-year median of 3.35. 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 5-Year Yield-on-Cost % is 1.93, which is 42% below median its 10-year median of 3.35 and 41.2% below the Steel industry median of 3.28. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Steel Dynamics (MEX:STLD), the current 5-Year Yield-on-Cost % is 1.93 as of Jul. 21, 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:
5-Year Yield-on-Cost %: 1.93 (42% below median its 10-year median of 3.35)
GF Value™: MXN2,834.69 vs. price of MXN4,107.96 (44.9% above fair value)
Industry Position: 41.2% below the Steel median (#208 of 319)
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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