Steel Dynamics - AI Stock Analysis

Analysis generated December 2, 2025

Steel Dynamics, Inc. (SDI) is one of the largest domestic steel producers and metals recyclers in the United States. Founded in 1993, the company has grown through innovation and strategic acquisitions. It operates through three segments: Steel Operations, Metals Recycling, and Steel Fabrication, serving a diverse range of industries, including construction, manufacturing, transportation, and automotive. SDI is known for its vertically integrated operations which offer a competitive advantage in reducing production costs. The company is headquartered in Fort Wayne, Indiana.

Fundamental Analysis

Steel Dynamics reported a revenue of $4.83 billion for the last quarter, showing a growth of 5.76% compared to the previous quarter and an impressive 11.21% year-over-year increase. These figures signify robust top-line growth, suggesting strong demand and effective sales strategies.

Net income for the last quarter stood at $404 million, an increase of 35.14% from the previous quarter and 27.02% from the same quarter last year. This substantial bottom-line growth underscores efficient cost management and operational efficiency.

The EBITDA for the last quarter was $666 million, reflecting an increase of 23.75% compared to the previous quarter and 21.93% year-over-year. This metric is crucial as it indicates the company's ability to generate earnings before interest, taxes, depreciation, and amortization, forming a strong basis for operating cash flow.

The company's current Price-to-Earnings (P/E) ratio stands at 22.23. This ratio, often used to value companies, appears to be in a normal range. A P/E in this range suggests that the stock is neither undervalued nor overvalued, providing a balanced view of market expectations.

Technical Analysis

As of today, the stock price of Steel Dynamics is $167.63. This indicates a positive short-term trend with a 6.91% increase compared to a month ago, and a long-term trend with an 18.89% increase compared to a year ago, affirming the stock's strong bullish momentum.

The current Simple Moving Average (SMA10) is 165.56, which is higher than the previous SMA10 of 164.61. This incremental rise in the SMA10 suggests potential upward traction in price movement, reinforcing a bullish outlook.

Moreover, the Relative Strength Index (RSI) is 49. Typically, an RSI below 30 indicates a stock is oversold, and above 70 indicate it is overbought. An RSI of 49 suggests that the stock is in neither condition, further indicating a steady bullish condition without imminent signs of correction.

Alternative Data Analysis

Regarding job postings and employee sentiment, Steel Dynamics currently has 169 open positions, a 27% increase over the past couple of months. This indicates active hiring, suggesting potential business expansion and a positive sign for future growth.

The business outlook among employees remains very high, with 85% having a positive outlook. This high morale and optimism can lead to sustained productivity improvements and operational efficiency.

In terms of customer acquisition, the company's webpage received about 61,000 visitors, which is up by 91% over the past couple of months. Increased web traffic often correlates with heightened customer interest, potentially leading to increased sales and market share.

Lastly, according to AltIndex's AI score, Steel Dynamics has a strong score of 71, which signals a buy. This AI-based metric holistically evaluates fundamental, technical, and alternative data to predict stock performance, further affirming a positive outlook.

Conclusion and Recommendation

In summary, Steel Dynamics presents a compelling investment opportunity based on its robust revenue and income growth, strong technical indicators, and promising alternative data insights. The company's stock shows bullish trends in both short-term and long-term perspectives, backed by a rising P/E ratio, increased hiring, and positive employee outlook. Given the comprehensive analysis, Steel Dynamics’ stock appears to be a solid investment, making it a recommendation to consider for portfolio inclusion.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.