Vulcan Steel Ltd. (AU:VSL)
ASX:VSL
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Vulcan Steel Ltd.
(Sydney:VSL)
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Rating:52Neutral
Price Target:
AU$5.00
â–Ľ(-26.90% Downside)
Action:Reiterated
Date:06/12/26
The score is held back primarily by weakening fundamentals (declining revenue/margins, pressured free cash flow growth, and high leverage). Technicals are also negative with the stock below major moving averages and weak momentum. Valuation further detracts due to a high P/E and only a modest dividend yield.
Positive Factors
Service-centre network
A broad network of service centres and downstream processing builds durable customer stickiness and recurring revenue from industrial and construction clients. Local processing capability enables faster delivery, differentiated service, and higher margin services versus pure distribution, supporting long-term competitiveness.
Negative Factors
Declining revenue
A multi-year decline in revenue and compressing gross/net margins signals weakening demand or lost pricing power. Persisting top-line contraction erodes scale benefits, pressures margins further, and undermines the ability to invest in branches or service-centre capabilities, hurting medium-term growth prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Service-centre network
A broad network of service centres and downstream processing builds durable customer stickiness and recurring revenue from industrial and construction clients. Local processing capability enables faster delivery, differentiated service, and higher margin services versus pure distribution, supporting long-term competitiveness.
Read all positive factors
Vulcan Steel Ltd. (VSL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$713.60M
Dividend Yield0.86%
Average Volume (3M)54.84K
Price to Earnings (P/E)56.8
Beta (1Y)1.23
Revenue Growth-1.99%
EPS Growth-39.25%
CountryAU
Employees1,307
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.11
Shares Outstanding146,529,950
10 Day Avg. Volume39,913
30 Day Avg. Volume54,845
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)4.93
Price to Sales (P/S)0.88
P/FCF Ratio9.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$5.75Price Target Upside-15.94% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$1.11B
Vulcan Steel Ltd. Business Overview & Revenue Model
Company Description
Vulcan Steel Limited, operating with its subsidiaries, focuses on the distribution and sale of steel and various metal products across New Zealand and Australia. The company's activities are structured into two principal divisions: Steel and Metal...
How the Company Makes Money
VSL makes money primarily by selling steel and related metal products to business customers and by charging for processing and other value-added services performed at its facilities. Its core revenue stream is the margin between the price it pays ...
Vulcan Steel Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 948.15M | 1.06B | 1.24B | 968.40M | 731.46M |
| Gross Profit | 281.72M | 324.60M | 374.95M | 443.89M | 387.08M | 152.89M |
| EBITDA | 109.54M | 124.87M | 163.02M | 207.40M | 232.75M | 129.49M |
| Net Income | 15.02M | 15.73M | 39.98M | 87.90M | 123.98M | 61.10M |
Balance Sheet | ||||||
| Total Assets | 1.08B | 858.66M | 906.43M | 1.00B | 791.89M | 580.78M |
| Cash, Cash Equivalents and Short-Term Investments | 28.58M | 17.37M | 24.11M | 20.32M | 23.93M | 10.17M |
| Total Debt | 916.53M | 545.04M | 590.21M | 649.73M | 411.44M | 323.80M |
| Total Liabilities | 787.93M | 689.01M | 734.38M | 818.29M | 607.44M | 494.92M |
| Stockholders Equity | 280.13M | 169.65M | 172.06M | 185.92M | 184.45M | 85.86M |
Cash Flow | ||||||
| Free Cash Flow | 42.32M | 83.63M | 142.02M | 123.82M | -62.73K | 99.79M |
| Operating Cash Flow | 64.34M | 104.95M | 168.71M | 146.77M | 12.09M | 105.45M |
| Investing Cash Flow | -85.52M | -17.22M | -23.98M | -193.24M | -11.54M | -822.00K |
| Financing Cash Flow | 36.41M | -94.19M | -141.18M | 43.16M | 12.38M | -108.70M |
Vulcan Steel Ltd. Technical Analysis
Negative
6.84
Price Trends
5.29
Negative
5.83
Negative
6.51
Negative
Market Momentum
-0.16
Positive
41.15
Neutral
24.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VSL, the sentiment is Negative. The current price of 6.84 is above the 20-day moving average (MA) of 5.19, above the 50-day MA of 5.29, and above the 200-day MA of 6.51, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 24.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:VSL.
Vulcan Steel Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | AU$223.39M | 11.51 | 24.98% | 7.62% | 3.98% | 18.90% | |
65 Neutral | AU$14.72B | 50.49 | 2.76% | 2.48% | 1.24% | -45.43% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | AU$5.67B | -99.18 | -2.29% | 1.27% | 12.84% | 47.94% | |
52 Neutral | AU$713.60M | 56.79 | 6.68% | 0.86% | -1.99% | -39.25% |
* Basic Materials Sector Average
AU:VSL
Vulcan Steel Ltd.
4.90
-0.72
-12.84%
AU:BSL
Bluescope Steel
34.02
12.63
59.02%
AU:SGM
Sims
29.96
14.76
97.04%
AU:BIS
Bisalloy Steel Group Ltd
4.65
1.63
53.87%
Vulcan Steel Ltd. Corporate Events
NZ Super Fund Trims Vulcan Steel Stake Below Substantial Holder Threshold
Mar 26, 2026
New Zealand Superannuation Fund Nominees, acting for the New Zealand Superannuation Fund, has reduced its holding in Vulcan Steel below the substantial shareholder threshold. Its stake fell from 5.650% to 4.917% of Vulcan Steel’s 146,529,960...
Vulcan Steel Director Russell Chenu Increases Indirect Shareholding
Mar 26, 2026
Vulcan Steel has disclosed a change in the interests of non-executive director Russell Chenu, whose holdings in the company have increased via his superannuation vehicle. Barratta Super Pty Ltd, as trustee for the Barratta Super Fund in which Chen...
Vulcan Steel Director Increases Indirect Shareholding via On‑Market Purchase
Mar 12, 2026
Vulcan Steel director Gavin William Street has increased his indirect holding in the company through the Street Trading Trust, acquiring 8,100 fully paid ordinary shares via an on-market trade on 12 March 2026 for AU$50,544. Following the purchase...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.