Nucor Corporation (NYSE:NUE) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of NUE, it is a financially-healthy , dividend-paying company with a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Nucor here.
Outstanding track record with excellent balance sheet and pays a dividend
In the previous year, NUE has ramped up its bottom line by 79%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 24% return to shareholders, which is an notable feat for the company. NUE's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that NUE manages its cash and cost levels well, which is an important determinant of the company’s health. NUE's has produced operating cash levels of 0.55x total debt over the past year, which implies that NUE's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that NUE is a great dividend company, with a current yield standing at 2.7%. NUE has also been regularly increasing its dividend payments to shareholders over the past decade.
For Nucor, I've compiled three pertinent factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for NUE’s future growth? Take a look at our free research report of analyst consensus for NUE’s outlook.
- Valuation: What is NUE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NUE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NUE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.