Nucor CorporationBUY Packet

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Overview• Exchange: NYSE• Sector: Industrial Materials• Industry: Steel• PEG Ratio: 0.70• ROE (2yr): 10.66

• Current Price: $53.78• 52 week range: $38.83-$54.63

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Company

• Steel Production• Electric Arc Furnaces• Recycling Scrap Metal

• Products• Steel Joists, Rebar, Fasteners, Beams

• 212 Facilities in 22 states• HQ: Charlotte, NC

• 20,000 workers3

SteelOperations

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Innovation

• Electric Arc Furnaces• Less labor intensive• Less energy intensive

• Direct Reduced Iron (DRI)• Low cost• Uses raw materials or scrap metal• Low cost Natural Gas• Encana Oil and Gas contract

• Higher Quality5

CompetitorsMember NUE SD XMarket Cap 17.33 B 4.25 B 3.93 BPrice to Earnings 38.30 22.70 -Earnings Per Share

1.42 0.85 -13.77

Price to Book 2.27 1.75 1.14Price to Sales 0.89 0.58 0.21Beta 1.31 1.83 2.26

Debt to Equity 48.60 91.55 113.2Return on Equity (TTM)

6.65 6.93 -3.55

Dividend (yield) $1.46 (2.69) $0.40 (2.30) $0.20 (0.72)

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Thesis

• Strong company and is an industry leader. Through its innovative use of electrical arc furnaces and recycling business Nucor has a strong business model that is unique from other companies in the steel industry. Although the metal and steel industries have been struggling, Nucor is financially strong and is believe to increase in value, especially when the metals industry recovers.

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Future Difficulties

• Metals industries performance• Lack of Demand• Over Supply

• Slow Construction Industry• Slow growth in China

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