NUE
ConsumerValuation Breakdown
A classic Discounted Cash Flow model built on Free Cash Flow (FCF), the actual cash a business generates after all operating expenses and capital expenditures. Future FCF is projected for 10 years with gradually decaying growth, then discounted back to today's value using WACC. This is the gold standard of intrinsic valuation: it values the company based on what it can actually deliver to shareholders, independent of market sentiment.
Valuation Track Record
Retroactive intrinsic value vs actual close price — NUE
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
The Beneish M-Score of -2.0265 indicates a low likelihood of earnings manipulation, as it is below the threshold of -1.78. However, the earnings quality score of 49.5 suggests potential concerns, particularly with cash conversion and revenue recognition metrics, which could signal underlying financial weaknesses.
- Earnings Quality Score of 49.5/100 indicates moderate risk, particularly with eq_cash_conv at 0.0/100, suggesting poor cash conversion.
- The SGI of 0.9706 indicates a decline in sales growth, which could impact future revenue generation.
- Beneish M-Score of -2.0265 is below the manipulation threshold, suggesting a lower risk of earnings manipulation.
- High receivables and margin scores (100.0/100) indicate strong management of accounts receivable and profitability.
The significant state ownership at 61.7% may lead to potential conflicts of interest and influence over corporate governance, which could impact decision-making and transparency.
Investors should closely monitor cash flow metrics and revenue recognition practices, considering the elevated risk from cash conversion issues. A cautious approach is advised until improvements in earnings quality are observed.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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