Bisalloy Steel Group Ltd (BIS) AI Stock Analysis

• Market Cap: AU$237.32M
• Dividend Yield: 7.62%
• Average Volume (3M): 106.17K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.31
• Revenue Growth: -0.03%
• EPS Growth: 23.78%
• Country: AU
• Employees: 819
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.17
• Shares Outstanding: 48,041,010
• 10 Day Avg. Volume: 99,496
• 30 Day Avg. Volume: 106,173
• PEG Ratio: 0.37
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 14.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: AU$7.00 ▲(43.44% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Bisalloy Steel Group Ltd has a robust financial performance with strong profitability and a stable balance sheet. The technical analysis supports a positive outlook, although caution is advised due to potential overbought conditions. The valuation is attractive with a reasonable P/E ratio and high dividend yield, making it a solid investment within the steel industry.

Positive Factors

Low Financial Leverage

A debt-to-equity ratio of 0.03 indicates very low financial leverage, reducing solvency risk and interest burden. This durable balance-sheet strength supports capital allocation flexibility, resilience through industry downturns, and capacity to fund maintenance, modest growth or shareholder distributions without stressing liquidity.

Improving Profitability and Margins

Material margin expansion over multiple years shows sustainable operational improvements and pricing power in specialty steel. Higher gross and net margins reflect better product mix, cost control and conversion of inputs into higher-value plates, supporting durable earnings power even if volumes fluctuate.

Proprietary Specialty Product and Value-Added Services

A focus on branded, heat-treated wear- and high-strength plates plus processing services creates differentiation versus commodity mills. This niche positioning drives higher margins, customer stickiness and defensibility through technical know-how and specifications, supporting steady demand from industrial and defence segments over time.

Negative Factors

Recent Revenue Contraction

A reported ~3.1% revenue decline signals recent demand softness. Sustained or repeated top-line contractions can erode capacity utilization and fixed-cost absorption, undermining the positive margin trends and limiting funds available for reinvestment or dividends if not reversed over the medium term.

Weakness in Cash Flow Growth

Decreasing operating cash flow and negative free-cash-flow growth despite a solid FCF/net income ratio point to emerging cash conversion issues. Over several quarters this can restrict capex, working capital flexibility and ability to sustain dividends or opportunistic investments, making the business more vulnerable to shocks.

Cyclical End-Market Exposure

Significant exposure to mining, heavy industry and infrastructure cycles creates multi-year revenue volatility tied to commodity cycles and capex timing. Even with specialty positioning, prolonged downturns in these end markets can materially reduce volumes and underutilize manufacturing capacity, pressuring returns.

Bisalloy Steel Group Ltd Business Overview & Revenue Model

Company Description

Bisalloy Steel Group Limited engages in the manufacture and sale of quenched and tempered, high-tensile, and abrasion resistant steel plates under the BISALLOY brand name. It offers wear, structural, and armor grade specialty steels. The company also provides protection steel products. It serves mining, construction, general fabrication, and pressure vessel defense industries. The company markets its products through distributors and agents, as well as directly to original equipment manufacturers in Australia and internationally. Further, it exports to Asia, the Middle East, Europe, North America, and South America. Bisalloy Steel Group Limited was founded in 1980 and is headquartered in Unanderra, Australia.

How the Company Makes Money

BIS generates revenue primarily through the sale of its high-performance steel products, with key revenue streams including direct sales to end-users in various sectors such as mining, construction, and defense. The company also benefits from long-term contracts with major clients, ensuring a steady flow of orders. Additionally, BIS engages in strategic partnerships and collaborations with industry players, which enhance its market reach and product offerings. The company's focus on innovation and quality assurance further supports its pricing power in the competitive steel market, leading to sustainable profitability.

Bisalloy Steel Group Ltd Financial Statement Overview

Summary

Bisalloy Steel Group Ltd demonstrates strong financial performance with consistent revenue growth, improved profit margins, and a low debt-to-equity ratio. However, there are challenges in cash flow growth despite stable cash generation.

Income Statement

Bisalloy Steel Group Ltd has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 21.3% in 2020 to 28.8% in 2025. The net profit margin has also improved significantly, reaching 12.8% in 2025. The EBIT and EBITDA margins have shown a positive trend, indicating strong operational efficiency. Overall, the company demonstrates robust profitability and growth in its income statement.

Balance Sheet

The company's balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.03 in 2025, indicating low financial leverage and reduced risk. The return on equity has been consistently high, reaching 24.2% in 2025, showcasing effective use of equity to generate profits. The equity ratio remains healthy, suggesting a stable financial structure.

Cash Flow

While the operating cash flow has decreased from 2024 to 2025, the company maintains a solid free cash flow to net income ratio of 0.91, indicating efficient cash generation relative to net income. However, the free cash flow growth rate has been negative, suggesting potential challenges in cash flow management. Overall, the cash flow statement shows stability but highlights areas for improvement in cash flow growth.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	153.01M	152.81M	152.86M	153.14M	117.83M	104.83M
Gross Profit	45.18M	44.05M	38.65M	32.62M	31.07M	23.35M
EBITDA	26.92M	30.88M	25.97M	19.80M	21.89M	13.51M
Net Income	19.30M	19.58M	15.74M	12.80M	14.99M	8.81M
Balance Sheet
Total Assets	118.02M	133.93M	118.58M	112.26M	106.59M	84.31M
Cash, Cash Equivalents and Short-Term Investments	2.26M	6.33M	6.30M	2.05M	1.83M	2.35M
Total Debt	11.24M	2.52M	1.08M	5.04M	11.16M	10.38M
Total Liabilities	39.64M	47.88M	41.31M	39.70M	42.30M	35.89M
Stockholders Equity	73.59M	80.94M	72.84M	67.97M	60.36M	44.96M
Cash Flow
Free Cash Flow	14.89M	12.17M	20.19M	12.06M	3.94M	11.05M
Operating Cash Flow	16.08M	13.40M	22.04M	13.09M	4.91M	12.65M
Investing Cash Flow	-1.34M	907.00K	187.00K	922.00K	-961.00K	155.00K
Financing Cash Flow	-18.51M	-14.21M	-17.91M	-11.89M	-4.51M	-9.16M

Bisalloy Steel Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BIS, the sentiment is Negative. The current price of 4.88 is below the 20-day moving average (MA) of 5.53, below the 50-day MA of 5.37, and above the 200-day MA of 4.65, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 36.47 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BIS.

Bisalloy Steel Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIS	78 Outperform	AU$237.32M	12.52	25.46%	7.62%	-0.03%	23.78%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VSL	61 Neutral	AU$997.87M	74.20	9.13%	0.86%	-12.17%	-61.32%
SGM	60 Neutral	AU$4.24B	-72.75	0.14%	1.27%	3.98%	70.79%
CIA	59 Neutral	C$2.90B	13.89	8.25%	3.66%	0.40%	-53.09%
BSL	57 Neutral	$12.06B	41.55	0.73%	2.48%	-4.46%	-89.42%
MGX	52 Neutral	AU$554.80M	-17.54	-16.34%	―	-48.05%	-1394.34%