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1. Company Snapshot

1.a. Company Description

Nucor Corporation manufactures and sells steel and steel products.The company's Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling products; and bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and special bar quality products.It also engages in the steel trading and rebar distribution businesses.


This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico.Its Steel Products segment offers hollow structural section steel tubing products, electrical conduits, steel racking, steel joists and joist girders, steel decks, fabricated concrete reinforcing steel products, cold finished steel products, steel fasteners, metal building systems, insulated metal panels, steel grating and expanded metal products, and wire and wire mesh products primarily for use in nonresidential construction applications.This segment also engages in the piling distribution business.


The company's Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal, as well as engages in the natural gas drilling operations.This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals.It serves agriculture, automotive, construction, energy and transmission, oil and gas, heavy equipment, infrastructure, and transportation industries through its in-house sales force; and internal distribution and trading companies.


Nucor Corporation was incorporated in 1958 and is based in Charlotte, North Carolina.

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1.b. Last Insights on NUE

Nucor Corporation's recent performance is driven by strong Q3 earnings, with quarterly earnings of $2.63 per share beating estimates. The company's growth prospects are fueled by secular trends in data center construction, power grid expansion, and reindustrialization. A recent rating upgrade to Strong Buy with a $172 price target cites optimistic market outlook and capital investments in new mills and data center infrastructure. Additionally, Nucor's strong balance sheet enables $985M in shareholder returns year-to-date.

1.c. Company Highlights

2. Nucor's Q3 2025 Earnings: Strong Performance Amidst Industry Challenges

Nucor reported a robust third-quarter earnings performance, with EPS coming in at $2.63, significantly beating estimates of $2.18. The company's EBITDA stood at approximately $1.3 billion, driven by stronger-than-expected shipments from its steel mills segment, which generated $793 million in pretax earnings. The steel products segment also contributed substantially with $319 million in pretax earnings. The raw materials segment realized pretax earnings of around $43 million. The overall financial performance was a testament to Nucor's operational efficiency and strategic management.

Publication Date: Oct -29

📋 Highlights
  • Strong Q3 Performance:: Nucor reported $1.3B EBITDA and $2.63 EPS, exceeding guidance by $0.50, driven by higher steel mill shipments and corporate adjustments.
  • Capital Allocation Strategy:: Reinvested $807M in growth projects (75% of net earnings) and returned $230M to shareholders via dividends/buybacks, totaling $1B or 72% of net earnings YTD.
  • Credit Rating Upgrade:: Moody’s upgraded Nucor to A3, making it the only major North American steel producer with an A- or A3 rating from all three agencies, supported by a 24% debt-to-capital ratio and $2.7B cash.
  • Data Center Market Expansion:: Positioned to supply 95% of steel products for data centers, with joist/deck backlog up 25% YoY and demand expected to grow 10-15% annually through 2030.

Segmental Performance

The bar mill group's strong results were driven by increased demand in non-residential construction and infrastructure markets, setting quarterly rebar shipment records in Q1 and Q3. The company also began ramping up production at its new melt shop in Kingman, Arizona, and its new rebar micro mill in Lexington, North Carolina. These strategic investments are expected to drive future growth and increase Nucor's market share.

Growth Initiatives and Market Outlook

Nucor is positioning itself as a key supplier to high-growth markets like data center construction, with the ability to supply over 95% of all steel products used in data centers. The company's commercial and construction solutions group is driving growth, with a focus on major developers and hyperscalers. Nucor is seeing significant growth in the data center market, with forecasted double-digit growth over the next 5-6 years, and is well-positioned to capitalize on this trend with its acquisition of Southwest Data Products.

Valuation and Return Metrics

With a P/E Ratio of 21.25 and an EV/EBITDA of 9.68, Nucor's valuation suggests a premium for its growth prospects and operational efficiency. The company's ROE stands at 8.11%, indicating a decent return on equity. Nucor's commitment to returning at least 40% of its earnings to shareholders is reflected in its dividend yield of 1.45%. Analysts estimate next year's revenue growth at 5.8%, which, combined with Nucor's strategic initiatives, is expected to drive future value creation.

Capital Management and Shareholder Returns

Nucor remains committed to prudent capital management, balancing growth with shareholder returns while maintaining its industry-leading credit profile. The company has returned $13 billion to shareholders over the last five years and has a strong balance sheet and liquidity position. Nucor's third-quarter buybacks were $100 million, and the company is expected to continue returning value to shareholders.

3. NewsRoom

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Nucor Announces Promotion of Steve Laxton to President and Chief Operating Officer; Dave Sumoski to Retire

Dec -04

Source: prnewswire.com

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Nucor Corporation (NYSE:NUE) Receives Average Recommendation of “Moderate Buy” from Brokerages

Dec -04

Source: defenseworld.net

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Fisher Asset Management LLC Lowers Stake in Nucor Corporation $NUE

Dec -03

Source: defenseworld.net

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Nucor Announces Increase in Cash Dividend

Dec -01

Source: prnewswire.com

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Coldstream Capital Management Inc. Decreases Stock Position in Nucor Corporation $NUE

Nov -28

Source: defenseworld.net

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Banco Bilbao Vizcaya Argentaria S.A. Sells 1,075 Shares of Nucor Corporation $NUE

Nov -19

Source: defenseworld.net

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Campbell & CO Investment Adviser LLC Has $260,000 Stock Holdings in Nucor Corporation $NUE

Nov -18

Source: defenseworld.net

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Why Nucor Stock Popped This Week

Oct -31

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.70%)

6. Segments

Steel Mills

Expected Growth: 5.0%

The steel industry is expected to grow due to increased infrastructure spending and demand from the automotive and construction sectors. Nucor's Steel Mills segment is well-positioned to benefit from this trend, driven by its diversified product portfolio and efficient production processes, justifying a slightly higher growth rate than the global revenue growth hypothesis.

Raw Materials

Expected Growth: 4.5%

The growth of the Raw Materials segment is closely tied to the steel industry's performance. While the segment benefits from internal demand, its growth is slightly constrained by the volatility of raw material prices. A growth rate slightly below the global revenue growth hypothesis is justified due to the segment's dependence on the steel industry's cyclical nature.

Steel Products

Expected Growth: 5.2%

The Steel Products segment is expected to benefit from the growth in the construction industry, driven by infrastructure spending and demand for steel products. The segment's diversified product portfolio and strong distribution network support its growth prospects, justifying a higher growth rate than the global revenue growth hypothesis.

Corporate/Eliminations

Expected Growth: 4.7%

As Corporate/Eliminations is not a revenue-generating segment, its growth rate is assumed to be in line with the global revenue growth hypothesis. This segment is primarily an accounting adjustment, and its growth rate is not expected to deviate significantly from the overall revenue growth rate.

7. Detailed Products

Steel Beams and Columns

Nucor's steel beams and columns are structural steel products used in construction, including buildings, bridges, and other infrastructure projects.

Steel Plates

Nucor's steel plates are flat steel products used in a variety of applications, including construction, shipbuilding, and energy production.

Rebar and Reinforcing Steel

Nucor's rebar and reinforcing steel products are used to add strength and stability to concrete structures, such as buildings, roads, and bridges.

Sheet Steel

Nucor's sheet steel products are thin, flat steel products used in a variety of applications, including automotive, appliance, and construction.

Electrical Steel

Nucor's electrical steel products are specialized steel products used in the production of electrical equipment, such as transformers and motors.

Bar and Rod

Nucor's bar and rod products are long, thin steel products used in a variety of applications, including construction, manufacturing, and transportation.

Nucor Fasteners

Nucor's fastener products include a range of screws, bolts, and other fastening products used to assemble and connect steel components.

8. Nucor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Nucor Corporation operates in the steel industry, where substitutes like aluminum, concrete, and wood are available but have different properties and applications. The threat of substitutes is relatively low due to the unique characteristics of steel and its widespread use in construction, automotive, and other industries.

Bargaining Power Of Customers

Nucor's customers include various industries such as construction, automotive, and consumer goods. While some customers may have significant bargaining power due to their large volume purchases, others may have limited negotiating power. Overall, the bargaining power of customers is moderate.

Bargaining Power Of Suppliers

Nucor Corporation has a diverse range of suppliers for raw materials such as scrap metal, iron ore, and coal. The company has a strong supply chain management system, which reduces the bargaining power of suppliers. Additionally, Nucor's large market share and purchasing volume give it a negotiating advantage.

Threat Of New Entrants

The steel industry has high barriers to entry due to significant capital requirements, technological complexity, and environmental regulations. New entrants would need to invest heavily in equipment, research and development, and marketing, making it difficult for them to compete with established players like Nucor.

Intensity Of Rivalry

The steel industry is highly competitive, with several large players competing for market share. Nucor Corporation faces intense rivalry from domestic and international competitors, which can lead to price wars, increased marketing expenses, and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.51%
Debt Cost 4.33%
Equity Weight 74.49%
Equity Cost 12.56%
WACC 10.46%
Leverage 34.25%

11. Quality Control: Nucor Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Friedman Industries

A-Score: 5.4/10

Value: 7.0

Growth: 6.3

Quality: 5.1

Yield: 2.0

Momentum: 8.5

Volatility: 3.7

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Reliance Steel & Aluminum

A-Score: 5.3/10

Value: 4.6

Growth: 6.1

Quality: 5.6

Yield: 3.0

Momentum: 4.0

Volatility: 8.7

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Nucor

A-Score: 5.1/10

Value: 6.5

Growth: 5.9

Quality: 4.7

Yield: 4.0

Momentum: 3.5

Volatility: 6.0

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Steel Dynamics

A-Score: 4.9/10

Value: 3.4

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 6.0

Volatility: 6.0

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CMC

A-Score: 4.4/10

Value: 3.9

Growth: 3.8

Quality: 4.5

Yield: 2.0

Momentum: 6.0

Volatility: 6.3

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LyondellBasell

A-Score: 4.2/10

Value: 4.0

Growth: 2.7

Quality: 2.6

Yield: 10.0

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

161.46$

Current Price

161.46$

Potential

0.00%

Expected Cash-Flows