Steel Dynamics, Inc. — Earnings Quality Grade F
STLD · Basic Materials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 34 days, change +4 days YoY
AR growth 18.7% exceeds revenue growth 3.6%
Revenue 3.6%, CFFO -21.4%. Cash follows revenue
Expense Quality
Inventory 20.1% vs COGS 7.1%. Normal
CapEx growth -49.2% vs revenue 3.6%. Normal
SG&A/Gross Profit = 32.0%. Normal
Gross margin 13.2%, change -2.8pp. Stable
Cash Flow Quality
CFFO/NI = 1.22. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -1.6%. Low accruals
Cash $0.8B covers only 18% of debt $4.2B
Balance Sheet Health
Goodwill+Intangibles $0.8B = 9% of equity. Manageable
Debt/EBITDA = 2.0x. Healthy
Other assets -18.2% vs revenue 3.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 15% YoY. Normal
Manipulation Score
M-Score = -2.40 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10