Nucor (NUE) AI Stock Analysis

• Market Cap: $31.69B
• Dividend Yield: 1.59%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.15
• Revenue Growth: -5.78%
• EPS Growth: -60.07%
• Country: US
• Employees: 32,700
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 2.60
• Shares Outstanding: 229,535,450
• 10 Day Avg. Volume: 1,639,634
• 30 Day Avg. Volume: 1,610,135
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 11.62
• Enterprise Value/Ebitda: 10.30
• 1Y Price Target: $161.60
• Price Target Upside: 17.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: $152.00 ▲(10.11% Upside)

Nucor's overall stock score reflects a stable financial position with strong balance sheet metrics and strategic growth initiatives. However, declining profit margins, negative free cash flow, and a high P/E ratio pose challenges. The positive sentiment from the earnings call and strategic projects provide support, but technical indicators suggest cautious optimism.

Positive Factors

Innovative Technology

Nucor's use of electric arc furnace technology allows for sustainable steel production using recycled scrap metal, providing a competitive edge in eco-friendly manufacturing and aligning with increasing environmental regulations.

Strategic Growth Initiatives

Nucor's strategic capital projects, such as new mills and galvanizing operations, position the company for future growth by expanding production capacity and enhancing product offerings, supporting long-term revenue growth.

Strong Market Position

As a leading steel producer in the US, Nucor benefits from economies of scale and a strong market presence, enabling it to maintain competitive pricing and secure long-term contracts with major customers.

Negative Factors

Margin Compression

Declining profit margins indicate pressure on profitability, which could affect Nucor's ability to invest in growth initiatives and maintain competitive pricing, impacting long-term financial performance.

Negative Free Cash Flow

Negative free cash flow presents a risk to Nucor's financial flexibility, potentially limiting its ability to fund strategic projects, return capital to shareholders, and manage debt effectively.

Tariff and Trade Challenges

Trade challenges and tariffs can disrupt supply chains and increase costs, potentially impacting Nucor's profitability and competitive position in the global steel market over the long term.

Nucor Business Overview & Revenue Model

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.

How the Company Makes Money

Nucor generates revenue primarily through the sale of steel and steel-related products, with key revenue streams coming from its various product lines such as structural steel, sheet steel, and merchant bar products. The company operates numerous steel mills and manufacturing facilities across the United States, which enables it to produce a diverse range of products tailored to different industries, including construction, automotive, and energy. Additionally, Nucor benefits from strategic partnerships and long-term contracts with major customers, providing a stable demand for its products. The company also capitalizes on its sustainability initiatives, as increasing demand for eco-friendly steel products can lead to premium pricing. Overall, Nucor's revenue model is supported by its operational efficiency, technological advancements, and strong market presence.

Nucor Financial Statement Overview

Summary

Nucor's financial performance is stable with a strong balance sheet and consistent revenue growth. However, declining profit margins and negative free cash flow highlight challenges in maintaining profitability and cash flow stability.

Income Statement

Nucor's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 1.25%, but margins have compressed compared to previous years. The gross profit margin has decreased to 10.43% from 13.35% in 2024, and the net profit margin has also declined to 4.21% from 6.60%. This indicates some pressure on profitability, although the company remains profitable. The EBIT and EBITDA margins have also decreased, reflecting challenges in maintaining operational efficiency.

Balance Sheet

Nucor's balance sheet remains strong with a manageable debt-to-equity ratio of 0.34, indicating prudent leverage. The return on equity (ROE) has decreased to 6.38% in the TTM period, down from 9.99% in 2024, suggesting a decline in profitability relative to shareholders' equity. However, the equity ratio remains healthy, reflecting a solid capital structure.

Cash Flow

The cash flow statement reveals some concerns, particularly with the free cash flow, which has turned negative in the TTM period. The free cash flow growth rate is significantly negative at -173.74%, indicating cash flow challenges. The operating cash flow to net income ratio is strong at 0.94, suggesting good cash generation relative to net income, but the negative free cash flow is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.81B	30.73B	34.71B	41.51B	36.48B	20.14B
Gross Profit	3.21B	4.10B	7.82B	12.50B	11.03B	2.23B
EBITDA	3.62B	4.49B	7.69B	11.57B	10.23B	1.79B
Net Income	1.30B	2.03B	4.52B	7.61B	6.83B	721.47M
Balance Sheet
Total Assets	34.22B	33.94B	35.34B	32.48B	25.82B	20.13B
Cash, Cash Equivalents and Short-Term Investments	2.48B	4.14B	7.13B	4.86B	2.62B	3.05B
Total Debt	6.88B	6.95B	6.84B	6.69B	5.68B	5.34B
Total Liabilities	12.72B	12.52B	13.22B	12.91B	11.22B	8.89B
Stockholders Equity	20.39B	20.29B	20.94B	18.41B	14.02B	10.79B
Cash Flow
Free Cash Flow	-385.00M	806.00M	4.90B	8.12B	4.61B	1.15B
Operating Cash Flow	3.13B	3.98B	7.11B	10.07B	6.23B	2.70B
Investing Cash Flow	-3.86B	-3.73B	-2.50B	-5.70B	-2.87B	-1.76B
Financing Cash Flow	-1.97B	-3.06B	-2.59B	-2.51B	-3.60B	285.85M

Nucor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUE, the sentiment is Positive. The current price of 138.04 is below the 20-day moving average (MA) of 138.06, below the 50-day MA of 141.22, and above the 200-day MA of 127.65, indicating a neutral trend. The MACD of -1.51 indicates Negative momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 71.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NUE.

Nucor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RS	75 Outperform	$14.94B	20.74	9.93%	1.65%	-3.91%	-30.31%
STLD	74 Outperform	$21.36B	21.17	11.57%	1.35%	-5.51%	-45.07%
CMC	72 Outperform	$6.56B	188.88	0.88%	1.23%	-5.64%	-93.26%
NUE	70 Outperform	$31.69B	24.92	6.28%	1.59%	-5.78%	-60.07%
MT	63 Neutral	$31.84B	11.68	4.72%	1.26%	-4.51%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PKX	60 Neutral	$14.66B	39.91	0.92%	2.75%	-7.63%	-63.14%

Nucor Corporate Events

Nucor Reports Strong Q2 2025 Financial Results

On July 28, 2025, Nucor Corporation reported its financial results for the second quarter of 2025, highlighting net earnings of $603 million and net sales of $8.46 billion. The company experienced sequential earnings growth across all segments, driven by higher selling prices and increased shipments. Nucor’s strong financial position is supported by a cash reserve of $2.48 billion and an undrawn $2.25 billion credit facility. The company repurchased 1.8 million shares and declared a cash dividend, reflecting its commitment to returning capital to shareholders. Nucor’s performance is buoyed by resilient demand, a healthy order backlog, and favorable tax and trade policies.