The New Roll Steel Mill And More M&A Could Push The Stock Price Up
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Update time : 2022-01-10 20:48:47
Steel Dynamics, Inc. is the largest steel producer and metal recycler in the United States.
The new Southwest-Sinton Flat Roll Division growth investment is a clear example of new initiatives for sales growth. If management continues to invest and increase capacity, revenue would trend north.
If management makes its business model more and more integrated, the FCF margin would increase. In addition, we could also expect more control over the manufacturing process.
I wanted to test the sensitivity of my model, so I also used an exit multiple of 25x, which resulted in a target price of $114-$115, and an IRR of 15%.
