Vulcan Steel Ltd. (VSL) AI Stock Analysis

• Market Cap: AU$1.06B
• Dividend Yield: 1.85%
• Average Volume (3M): 42.77K
• Price to Earnings (P/E): 69.4
• Beta (1Y): 0.98
• Revenue Growth: -12.17%
• EPS Growth: -61.32%
• Country: AU
• Employees: 1,307
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.06
• Shares Outstanding: 141,754,400
• 10 Day Avg. Volume: 56,918
• 30 Day Avg. Volume: 42,766
• PEG Ratio: -0.89
• Price to Book (P/B): 4.93
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 9.99
• 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: AU$6.25
• Price Target Upside: -13.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: AU$7.00 ▼(-3.31% Downside)

Vulcan Steel Ltd. receives a moderate score due to its operational efficiency and positive short-term technical indicators. However, the high P/E ratio raises valuation concerns, and financial performance is hindered by declining revenue, profit margins, and high leverage. Addressing these financial challenges is crucial for improving the company's overall outlook.

Vulcan Steel Ltd. Business Overview & Revenue Model

Company Description

Vulcan Steel Ltd. (VSL) is a prominent player in the steel manufacturing industry, specializing in the production and distribution of high-quality steel products. The company operates across various sectors, including construction, automotive, and industrial manufacturing. VSL's core products include steel beams, sheets, coils, and other custom steel solutions tailored to meet the diverse needs of its clients.

How the Company Makes Money

Vulcan Steel Ltd. generates revenue through the sale of its steel products to a wide range of industries. The company's key revenue streams include direct sales to construction companies, automotive manufacturers, and industrial clients who require steel components for their operations. Additionally, VSL engages in strategic partnerships with suppliers and distributors to enhance its market reach and ensure a steady supply chain. The company's earnings are significantly influenced by factors such as global steel demand, raw material costs, and economic conditions impacting the sectors it serves.

Vulcan Steel Ltd. Financial Statement Overview

Summary

Vulcan Steel Ltd. faces challenges with declining revenue and profit margins, coupled with high leverage, which could impact financial stability. While operational efficiency remains a strength, the significant decline in free cash flow growth and high debt levels pose risks. The company needs to address these challenges to improve its financial health and ensure sustainable growth.

Income Statement

Vulcan Steel Ltd. has experienced a decline in revenue growth, with a negative growth rate of -4.55% in the most recent year. Gross profit margin has decreased from previous years, indicating pressure on profitability. The net profit margin has also declined, reflecting challenges in maintaining profitability. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, suggesting operational efficiency. However, the declining revenue and profit margins are areas of concern.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which could pose financial risk. The return on equity has decreased, reflecting reduced profitability for shareholders. The equity ratio is relatively low, suggesting a higher reliance on debt financing. These factors highlight potential financial stability concerns, although the company has managed to maintain a positive equity position.

Cash Flow

Vulcan Steel Ltd. has seen a significant decline in free cash flow growth, which is a concern for future liquidity. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. However, the free cash flow to net income ratio has decreased, reflecting challenges in converting profits into free cash flow. The overall cash flow position suggests operational efficiency but highlights potential liquidity risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	993.31M	948.15M	1.06B	1.24B	968.40M	731.46M
Gross Profit	348.63M	324.60M	374.95M	443.89M	387.08M	152.89M
EBITDA	90.25M	124.87M	163.02M	207.40M	232.75M	129.49M
Net Income	23.06M	15.73M	39.98M	87.90M	123.98M	61.10M
Balance Sheet
Total Assets	877.14M	858.66M	906.43M	1.00B	791.89M	580.78M
Cash, Cash Equivalents and Short-Term Investments	8.96M	17.37M	24.11M	20.32M	23.93M	10.17M
Total Debt	537.07M	545.04M	590.21M	649.73M	411.44M	323.80M
Total Liabilities	707.90M	689.01M	734.38M	818.29M	607.44M	494.92M
Stockholders Equity	169.24M	169.65M	172.06M	185.92M	184.45M	85.86M
Cash Flow
Free Cash Flow	117.71M	83.63M	142.02M	123.82M	-62.73K	99.79M
Operating Cash Flow	144.09M	104.95M	168.71M	146.77M	12.09M	105.45M
Investing Cash Flow	-25.91M	-17.22M	-23.98M	-193.24M	-11.54M	-822.00K
Financing Cash Flow	-113.33M	-94.19M	-141.18M	43.16M	12.38M	-108.70M

Vulcan Steel Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.24
• 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:VSL, the sentiment is Positive. The current price of 7.24 is above the 20-day moving average (MA) of 7.02, above the 50-day MA of 6.59, and above the 200-day MA of 6.91, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VSL.

Vulcan Steel Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIS	76 Outperform	269.03M	13.57	0.00%	5.80%	-0.03%	23.78%
VSL	61 Neutral	AU$1.06B	69.42	9.13%	1.85%	-12.17%	-61.32%
BSL	54 Neutral	9.84B	116.61	0.79%	2.67%	-4.46%	-89.42%
SGM	51 Neutral	2.72B	-161.42	-0.73%	0.71%	3.98%	70.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Vulcan Steel Ltd. Corporate Events

Vulcan Steel Secures Extended Banking Covenant Relief

Vulcan Steel Limited has successfully extended the relaxation of its banking covenant thresholds until June 2026, ensuring strong liquidity and no debt maturities until the financial year ending June 2027. This strategic move, amid uncertain economic conditions, provides Vulcan with the financial flexibility to meet increasing customer demand in Australia and New Zealand, while continuing to invest in customer-facing initiatives.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$7.20 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Announces Leadership Transition with New CEO Appointment

Vulcan Steel Limited announced a significant leadership transition, with CEO Rhys Jones retiring after 19 years and Gavin Street, the current Chief Commercial Officer, stepping in as the new Managing Director and CEO effective January 2026. This change is part of a broader strategic focus on stability and long-term value creation, with Rhys Jones expected to transition to the role of non-executive Chair, ensuring continuity and leveraging his industry expertise. The transition is designed to maintain strong governance and operational continuity, with Adrian Casey continuing as Chief Operating Officer and Russell Chenu remaining on the board as lead independent director.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$7.20 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.