Bluescope Steel (BSL) AI Stock Analysis

• Market Cap: $10.58B
• Dividend Yield: 2.49%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.02
• Revenue Growth: -5.64%
• EPS Growth: -33.77%
• Country: AU
• Employees: 16,500
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 0.40
• Shares Outstanding: 438,609,860
• 10 Day Avg. Volume: 1,096,525
• 30 Day Avg. Volume: 1,298,472
• PEG Ratio: -0.62
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.72
• 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: $27.12
• Price Target Upside: 12.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: AU$25.00 ▲(3.73%Upside)

Bluescope Steel demonstrates robust financial stability and profitability, supported by positive earnings call guidance and strategic growth initiatives. However, declining revenue, free cash flow challenges, and mixed technical signals temper the overall outlook, resulting in a moderately favorable stock score.

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 generates revenue primarily through the manufacture and sale of steel products and solutions. Key revenue streams include the sale of coated and painted steel products, with a significant portion derived from its COLORBOND® and ZINCALUME® brands. The company also earns revenue from its engineered building solutions and metal building systems, catering to commercial and industrial clients. BlueScope's earnings are bolstered by strategic partnerships and joint ventures, such as its collaboration with Nippon Steel in the North Star BlueScope Steel operation in the United States. Additionally, the company's international presence in diverse markets helps mitigate regional economic fluctuations, contributing to a more stable revenue base.

Bluescope Steel Financial Statement Overview

Summary

Bluescope Steel Limited exhibits strong profitability with solid margins and low leverage, indicating financial stability. However, declining revenue and free cash flow present challenges, necessitating sustained operational efficiency to maintain robust financial health.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	17.06B	18.17B	18.99B	12.87B	11.28B
Gross Profit	6.68B	2.64B	4.71B	2.38B	1.25B
EBITDA	2.02B	2.15B	4.38B	2.22B	864.30M
Net Income	805.70M	1.01B	2.81B	1.19B	96.50M
Balance Sheet
Total Assets	15.68B	15.94B	16.61B	13.15B	11.56B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.49B	1.68B	1.96B	1.40B
Total Debt	721.50M	786.50M	1.32B	1.16B	1.32B
Total Liabilities	4.39B	4.90B	6.16B	4.99B	4.52B
Stockholders Equity	10.72B	10.47B	9.78B	7.63B	6.54B
Cash Flow
Free Cash Flow	433.70M	1.34B	1.71B	897.80M	238.10M
Operating Cash Flow	1.41B	2.15B	2.47B	1.66B	817.90M
Investing Cash Flow	-967.00M	-979.10M	-1.76B	-757.40M	-570.30M
Financing Cash Flow	-849.20M	-1.36B	-1.05B	-295.90M	-483.80M

Bluescope Steel Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.10
• 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 Neutral. The current price of 24.1 is above the 20-day moving average (MA) of 23.58, above the 50-day MA of 23.39, and above the 200-day MA of 21.96, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 35.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:BSL.

Bluescope Steel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSL	70 Outperform	$10.58B	19.54	5.09%	2.49%	-5.64%	-33.77%
Sector *	62 Neutral	$10.15B	9.72	0.09%	2.91%	2.26%	-33.42%
CIA	―	C$2.16B	14.59	10.03%	5.00%	―	―
MTGRF	―	$229.92M	65.86	-35.86%	―	―	―
SMUPF	―	$2.09B	―	-1.24%	1.34%	―	―
BIS	76 Outperform	AU$191.61M	11.81	22.95%	8.00%	-2.79%	13.47%
VSL	57 Neutral	AU$876.37M	41.28	13.66%	0.70%	-15.83%	-61.60%

Bluescope Steel Corporate Events

BlueScope Steel Announces Director’s Share Rights Vesting

BlueScope Steel Limited announced a change in the interest of its director, Jennifer Lambert, as part of the FY2025 Non-Executive Director Fee Sacrifice Plan. On July 8, 2025, 879 Share Rights vested and were automatically exercised, resulting in the allocation of an equivalent number of ordinary shares to Ms. Lambert. These shares are held by the trustee of the BlueScope Steel Employee Share Plan Trust and are subject to a restriction period until March 6, 2040, or until Ms. Lambert ceases to be a director, whichever comes first. This change reflects the company’s ongoing commitment to aligning director interests with shareholder value.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

BlueScope Steel Director’s Interest Update: Ewen Crouch Acquires Additional Shares

BlueScope Steel Limited announced a change in the director’s interest, with Ewen Crouch acquiring 1,758 fully paid ordinary shares through the vesting of share rights under the FY2025 Non-Executive Director Fee Sacrifice Plan. This change reflects the company’s commitment to aligning the interests of its directors with those of its shareholders, potentially impacting its governance and stakeholder relations positively.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

Bluescope Steel Announces Cessation of Securities

Bluescope Steel Limited announced the cessation of 46,636 securities due to the lapse of conditional rights, as the conditions were not met or became unsatisfiable. This cessation may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and market positioning.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.

AustralianSuper Increases Stake in Bluescope Steel

AustralianSuper Pty Ltd has increased its voting power in Bluescope Steel Limited from 9.28% to 10.42%, indicating a growing interest and influence in the company. This change in substantial holding could impact Bluescope Steel’s strategic decisions and shareholder dynamics, reflecting AustralianSuper’s confidence in the company’s future prospects.

The most recent analyst rating on (AU:BSL) stock is a Hold with a A$22.00 price target. To see the full list of analyst forecasts on Bluescope Steel stock, see the AU:BSL Stock Forecast page.