Nucor Corporation (NUE) – Outlook for Q3FY23 looks bleak

Nucor Corporation (NUE) (Q2FY23)

Stock Performance: Over the past 3 years, NUE generated returns of 270% where the stock price surged from $46.61 in Sep 03, 2020, to $172.58 in Sep 01, 2023. The stock had a 200-Day Moving Average of $154.54 and a 50-day Moving Average of $167.1.

In the past 1 year, NUE delivered returns of 24% where the stock price increased from $139.42 in Sep 08, 2022, to $172.58 on Sep 01, 2023. The stock had a 52 Week High of $182.68 and a 52 Week Low of $102.86.

Over the past 3 months, NUE’s stock price increased by 22% from $140.94 in Jun 05, 2023 to $172.58 in Jun 05, 2023.

Quarter Performance: In Q2FY23, NUE’s revenue declined by -19% to $9.52bn from $11.79bn in Q2FY22 and the COGS decreased by -8.7% to $7.02bn from $7.69bn in the same period.

EBITDA declined by -38% to $2.5bn in Q2FY23 from $3.94bn in Q2FY22. The company had an effective tax rate of 22.57% in Q2FY23.

Outlook: Earnings in Q3FY23 is expected to decrease compared to Q2FY23. NUE expects earnings for the steel mills segment to decline in Q3FY23 as compared to Q2FY23 due to decreased profitability, with the largest impact at its sheet mills. The earnings of the steel products segment are expected to moderate in Q3FY23 as compared to Q2FY23.

Highlights

NUE has completed slightly more than 50% of its $10bn Capex plan to grow its core steelmaking operations. Several of these investments are already generating incremental earnings and growing NUE’s share in key markets.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 35

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