Bluescope Steel (BSL) AI Stock Analysis

• Market Cap: $10.53B
• Dividend Yield: 2.63%
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.09
• Revenue Growth: -5.64%
• EPS Growth: -33.77%
• Country: AU
• Employees: 16,500
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 0.40
• Shares Outstanding: 438,609,860
• 10 Day Avg. Volume: 1,606,281
• 30 Day Avg. Volume: 1,453,305
• PEG Ratio: -0.59
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.00
• 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: $26.63
• Price Target Upside: 12.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: AU$27.00 ▲(13.59%Upside)

Bluescope Steel's overall score is driven by strong financial performance and a positive outlook from recent earnings guidance, despite challenges in cash flow and macroeconomic conditions. The technical indicators also support a stable market sentiment, while valuation remains reasonable.

Positive Factors

Financial Strategy

BSL extended the annual on-market share buyback to A$270mn, which is considered prudent and counter-cyclical.

Outlook

The outlook for the Asian and US Buildings & Coated Products is better than expected.

Negative Factors

Earnings

BSL reported 2H FY24 EBIT at the bottom end of the A$620-690mn guidance range.

Bluescope Steel Business Overview & Revenue Model

Company Description

BlueScope Steel Limited produces and sells metal coated and painted steel building products in Australia, New Zealand, Asia, North America, and internationally. The company operates through five segments: Australian Steel Products, North Star BlueScope Steel, Building Products Asia & North America, Buildings and Coated Products North America, and New Zealand & Pacific Islands. It offers steel slabs, plates, hot and cold rolled coils, coated and painted strip products, roof and wall claddings, and purlins and house framings under the LYSAGHT steel building products, COLORBOND steel, COLORSTEEL, ZINCALUME steel, GALVABOND steel, GALVASPAN steel, BlueScope Zacs, and SuperDyma brands. The company also provides engineered building solutions to industrial and commercial markets under the Butler, Varco Pruden, EcoBuild, and PROBUILD brands. It serves customers in the residential and non-residential building, construction, manufacturing, automotive and transport, agricultural, and mining industries directly, as well as through a network of service centers and steel distribution businesses. The company was formerly known as BHP Steel Limited and changed its name to BlueScope Steel Limited in November 2003. BlueScope Steel Limited was founded in 1885 and is headquartered in Melbourne, Australia.

How the Company Makes Money

BlueScope Steel Limited generates revenue through the production and sale of a broad range of steel products primarily to the construction and manufacturing industries. Its primary revenue streams include the sale of flat steel products like COLORBOND® and ZINCALUME® for roofing, walling, and structural applications. The company also earns income from its steelmaking operations in Australia and New Zealand, as well as its network of manufacturing, coating, and painting facilities across Asia and North America. Additionally, BlueScope leverages strategic partnerships and joint ventures, such as the North Star BlueScope Steel joint venture in the United States, which contribute significantly to its earnings through the supply of hot rolled coil. The company's focus on innovation, sustainability, and customer-centric solutions enhances its competitive edge and revenue potential in the global steel market.

Bluescope Steel Financial Statement Overview

Summary

Bluescope Steel Limited exhibits strong profitability and financial stability with respectable margins and low leverage. However, the recent decline in revenue and free cash flow poses challenges. The company's ability to sustain operational efficiency and maintain robust financial health amidst revenue fluctuations will be crucial for future performance.

Income Statement

Bluescope Steel Limited demonstrated a robust gross profit margin of 39.15% and a net profit margin of 4.72% in the 2024 fiscal year. However, there was a notable revenue decline of 6.16% compared to the previous year. The EBIT margin stood at 7.43%, and the EBITDA margin was 11.69%. Overall, the company shows solid profitability despite declining revenue, indicating efficiency in managing costs.

Balance Sheet

The company has a healthy debt-to-equity ratio of 0.07, suggesting low leverage which is advantageous in maintaining financial stability. The return on equity (ROE) is 7.51%, indicating a reasonable return to shareholders. Additionally, the equity ratio of 68.39% signifies strong equity financing, providing a cushion against financial fluctuations.

Cash Flow

Bluescope Steel's free cash flow decreased by 67.68% from the previous year, reflecting potential challenges in generating cash. The operating cash flow to net income ratio of 1.75 and a free cash flow to net income ratio of 0.54 highlight that the company generates adequate operating cash relative to net income, but there's room for improvement in free cash flow.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
16.40B	17.06B	18.17B	18.99B	12.87B	11.28B
	Gross Profit
11.19B	6.68B	2.64B	4.71B	2.38B	1.25B
	EBIT
1.57B	1.27B	1.35B	3.63B	1.65B	415.80M
	EBITDA
1.47B	2.02B	2.15B	4.38B	2.22B	864.30M
	Net Income Common Stockholders
545.50M	805.70M	1.01B	2.81B	1.19B	96.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
822.00M	1.09B	1.49B	1.68B	1.96B	1.40B
	Total Assets
16.02B	15.68B	15.94B	16.61B	13.15B	11.56B
	Total Debt
734.50M	721.50M	786.50M	1.32B	1.16B	1.32B
	Net Debt
-87.50M	-364.00M	-703.30M	-367.10M	-798.10M	-79.10M
	Total Liabilities
4.21B	4.39B	4.90B	6.16B	4.99B	4.52B
	Stockholders Equity
11.16B	10.72B	10.47B	9.78B	7.63B	6.54B
Cash Flow		Free Cash Flow
177.20M	433.70M	1.34B	1.71B	897.80M	238.10M
	Operating Cash Flow
1.25B	1.41B	2.15B	2.47B	1.66B	817.90M
	Investing Cash Flow
-1.10B	-967.00M	-979.10M	-1.76B	-757.40M	-570.30M
	Financing Cash Flow
-716.30M	-849.20M	-1.36B	-1.05B	-295.90M	-483.80M

Bluescope Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BSL, the sentiment is Positive. The current price of 23.77 is above the 20-day moving average (MA) of 23.50, above the 50-day MA of 22.66, and above the 200-day MA of 21.52, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 58.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BSL.

Bluescope Steel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSL	75 Outperform	$10.53B	19.44	5.09%	2.63%	-5.64%	-33.77%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%
CIA		C$2.05B	14.34	10.03%	5.00%	―	―
MTGRF		$210.65M	65.86	-35.86%	―	―	―
SMUPF		$1.96B	―	-1.24%	1.52%	―	―
BIS	74 Outperform	AU$161.44M	9.95	22.95%	5.79%	-2.79%	13.47%
VSL	62 Neutral	AU$865.83M	40.78	13.66%	2.12%	-15.83%	-61.60%

Bluescope Steel Corporate Events

BlueScope Steel Announces Change in Company Secretary

BlueScope Steel Limited has announced a change in its company secretary position, with Penny Grau resigning and Virginia Porter, the Chief Legal Officer, assuming the role effective 22 April 2025. This transition is expected to maintain the company’s compliance and communication with the ASX, ensuring continuity in its corporate governance and operational efficiency.

Bluescope Steel Announces Cessation of Securities

Bluescope Steel Limited announced the cessation of 117,647 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may impact the company’s capital structure and could have implications for its stakeholders, reflecting on its operational adjustments in the market.

Bluescope Steel Issues Unquoted Equity Securities for Employee Incentive

Bluescope Steel Limited announced the issuance of unquoted equity securities as part of an employee incentive scheme. This move is expected to enhance employee engagement and align interests with company performance, potentially impacting the company’s operational dynamics and stakeholder relations.