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

Vulcan Steel Ltd. (VSL) AI Stock Analysis

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AU

Vulcan Steel Ltd.

(Sydney:VSL)

Rating:54Neutral
Price Target:
AU$5.50
▼(-14.46%Downside)
The overall stock score is impacted primarily by weak financial performance and technical indicators. The company's declining revenue and profitability margins, combined with bearish technical signals, weigh heavily on the score. Valuation metrics suggest the stock may be overvalued, adding further caution for potential investors.

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

Vulcan Steel Ltd. Business Overview & Revenue Model

Company DescriptionVulcan Steel Limited, together with its subsidiaries, engages in the sale and distribution of steel and metal products in New Zealand and Australia. The company operates in two segments, Steel and Metals. It sells hollows; merchant products, including bars, beams, angles, channels, and unprocessed coils and plates; stainless steel products, such as hollows, bars, fittings, and sheets; and high-performance steel and metal products. The company also provides cutting, drilling, tapping, countersinking, and folding of plates, as well as sheeting and slitting services. Vulcan Steel Limited was incorporated in 1995 and is based in Auckland, New Zealand.
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, strong cash flows provide a buffer against operational pressures and support financial stability.
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue993.31M1.06B1.24B968.40M731.46M649.83M
Gross Profit348.63M374.95M443.89M387.08M152.89M106.83M
EBITDA90.25M163.02M207.40M232.75M129.49M85.09M
Net Income23.06M39.98M87.90M123.98M61.10M32.36M
Balance Sheet
Total Assets877.14M906.43M1.00B791.89M580.78M556.32M
Cash, Cash Equivalents and Short-Term Investments8.96M24.11M20.32M23.93M10.17M14.20M
Total Debt537.07M590.21M649.73M411.44M323.80M294.91M
Total Liabilities707.90M734.38M818.29M607.44M494.92M421.35M
Stockholders Equity169.24M172.06M185.92M184.45M85.86M134.97M
Cash Flow
Free Cash Flow117.71M142.02M123.82M-62.73K99.79M66.31M
Operating Cash Flow144.09M168.71M146.77M12.09M105.45M71.27M
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
Neutral
Last Price6.43
Price Trends
50DMA
6.53
Negative
100DMA
7.10
Negative
200DMA
7.24
Negative
Market Momentum
MACD
-0.12
Negative
RSI
57.32
Neutral
STOCH
92.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VSL, the sentiment is Neutral. The current price of 6.43 is above the 20-day moving average (MA) of 5.89, below the 50-day MA of 6.53, and below the 200-day MA of 7.24, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 92.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:VSL.

Vulcan Steel Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUVSL
54
Neutral
AU$814.43M38.3613.66%0.75%-15.83%-61.60%
43
Neutral
AU$1.42B-6.27-40.74%4.05%-3.45%-41.76%
$6.99B18.755.09%2.50%
$2.03B-1.24%1.34%
AUBIS
76
Outperform
AU$193.05M11.9022.95%7.94%-2.79%13.47%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VSL
Vulcan Steel Ltd.
6.43
0.21
3.38%
BLSFF
Bluescope Steel Limited
15.26
2.48
19.41%
SMUPF
Sims
9.38
2.46
35.55%
AU:BIS
Bisalloy Steel Group Ltd
3.99
-0.20
-4.77%

Vulcan Steel Ltd. Corporate Events

Vulcan Steel Secures Extended Banking Covenant Relief
Jun 23, 2025

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
Jun 16, 2025

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.

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.Date of analysis: Jun 25, 2025