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Vulcan Steel Ltd. (AU:VSL)
:VSL
Australian Market

Vulcan Steel Ltd. (VSL) AI Stock Analysis

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AU

Vulcan Steel Ltd.

(Sydney:VSL)

Rating:62Neutral
Price Target:
AU$7.50
▲(14.16%Upside)
Vulcan Steel Ltd. presents a mixed outlook. Financial performance is pressured by declining revenue and profitability, though strong cash flow offers stability. Technical indicators suggest a bearish trend, and valuation metrics indicate potential overvaluation. These factors combine to yield a moderate overall score.

Vulcan Steel Ltd. (VSL) vs. iShares MSCI Australia ETF (EWA)

Vulcan Steel Ltd. Business Overview & Revenue Model

Company DescriptionVulcan Steel Ltd. (VSL) is a leading company in the manufacturing and distribution of steel products, serving various sectors such as construction, automotive, and energy. The company specializes in producing high-quality steel sheets, coils, and custom-engineered steel solutions designed to meet the specific needs of its diverse clientele. With a strong focus on innovation, sustainability, and customer satisfaction, Vulcan Steel Ltd. has established itself as a trusted partner in the steel industry.
How the Company Makes MoneyVulcan Steel Ltd. generates revenue primarily through the sale of its steel products to businesses across multiple sectors. The company's key revenue streams include direct sales of standard steel products such as sheets and coils, as well as custom solutions tailored to specific client requirements. Additionally, VSL engages in long-term contracts and partnerships with major players in industries like construction and manufacturing, ensuring a steady flow of income. The company also invests in research and development to enhance product quality and operational efficiency, which helps maintain competitive pricing and attract more business.

Vulcan Steel Ltd. Financial Statement Overview

Summary
Vulcan Steel Ltd. faces challenges with declining revenue and profitability margins, impacting its income statement. The balance sheet shows increased leverage, posing potential financial risks. However, the company maintains strong cash flows, providing a buffer against operational pressures and supporting financial stability. Continued focus on revenue growth and managing leverage will be crucial for future performance in a competitive industry.
Income Statement
65
Positive
Vulcan Steel Ltd. has shown a decline in total revenue from $1.24 billion in 2023 to $1.06 billion in 2024, representing a negative revenue growth rate. The gross profit margin decreased from 35.65% in 2023 to 35.24% in 2024. The net profit margin also saw a decline from 7.06% to 3.76% over the same period. These figures suggest pressure on profitability, although the company maintains positive EBIT and EBITDA margins. The industry may face challenges, but steady EBIT and EBITDA indicate some operational efficiency.
Balance Sheet
60
Neutral
The debt-to-equity ratio increased, indicating higher leverage with a rise from 3.49 in 2023 to 3.43 in 2024. Stockholders' equity decreased, which might pose a risk if the trend continues. The equity ratio slightly decreased from 18.52% to 18.98%, highlighting increased reliance on debt financing. The return on equity dropped significantly to 23.24% from 47.28%, further emphasizing the impact of reduced net income on shareholder returns.
Cash Flow
75
Positive
The operating cash flow increased from $146.77 million in 2023 to $168.71 million in 2024, demonstrating strong cash generation capability. The free cash flow also improved, reflecting effective management of capital expenditures and investments. The free cash flow to net income ratio is favorable, indicating good conversion of earnings into cash. These metrics suggest a stable cash flow position, which is vital for sustaining operations and supporting debt obligations.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
993.31M1.06B1.24B968.40M731.46M649.83M
Gross Profit
348.63M374.95M443.89M387.08M152.89M106.83M
EBIT
71.86M98.99M147.12M184.77M99.60M54.58M
EBITDA
90.25M163.02M207.40M232.75M129.49M85.09M
Net Income Common Stockholders
23.06M39.98M87.90M123.98M61.10M32.36M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.02M24.11M20.32M23.93M10.17M14.20M
Total Assets
907.89M906.43M1.00B791.89M580.78M556.32M
Total Debt
591.82M590.21M649.73M411.44M323.80M294.91M
Net Debt
587.80M566.10M629.41M387.51M313.63M280.72M
Total Liabilities
738.61M734.38M818.29M607.44M494.92M421.35M
Stockholders Equity
169.28M172.06M185.92M184.45M85.86M134.97M
Cash FlowFree Cash Flow
117.71M142.02M123.82M-62.73K99.79M66.31M
Operating Cash Flow
144.09M168.71M146.77M12.09M105.45M71.27M
Investing Cash Flow
-25.91M-23.98M-193.24M-11.54M-822.00K-32.21M
Financing Cash Flow
-113.33M-141.18M43.16M12.38M-108.70M-29.74M

Vulcan Steel Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.57
Price Trends
50DMA
7.21
Negative
100DMA
7.36
Negative
200DMA
7.37
Negative
Market Momentum
MACD
-0.20
Negative
RSI
40.34
Neutral
STOCH
42.36
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 6.57 is below the 20-day moving average (MA) of 6.80, below the 50-day MA of 7.21, and below the 200-day MA of 7.37, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 42.36 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNWH
80
Outperform
€1.29B11.1718.01%5.98%13.68%24.51%
AUJHX
68
Neutral
$17.22B26.8221.09%2.20%-16.72%
AUAMC
68
Neutral
AU$32.25B16.3620.24%5.62%-1.42%25.16%
AUORI
67
Neutral
AU$9.20B93.652.30%3.60%4.50%-81.89%
AUVSL
62
Neutral
AU$857.92M40.4113.66%2.14%-15.83%-61.60%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VSL
Vulcan Steel Ltd.
6.51
-0.45
-6.47%
AU:NWH
NRW Holdings Limited
2.82
<0.01
0.21%
AU:ORI
Orica Limited
18.87
1.23
6.98%
AU:JHX
James Hardie
40.06
-5.94
-12.91%
AU:AMC
Amcor PLC Shs Chess Depository Interests
13.98
-0.36
-2.51%

Vulcan Steel Ltd. Corporate Events

Vulcan Steel Director Increases Shareholding
Mar 6, 2025

Vulcan Steel Limited announced a change in the director’s interest, with Russell Chenu acquiring an additional 8,000 ordinary shares through on-market trades. This acquisition increases his total holdings to 63,896 shares, indicating a strengthened personal investment in the company, which may reflect confidence in its future performance.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.