Vulcan Steel Ltd. (VSL) AI Stock Analysis

• Market Cap: AU$1.13B
• Dividend Yield: 0.86%
• Average Volume (3M): 54.84K
• Price to Earnings (P/E): 71.5
• Beta (1Y): 0.96
• 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: 146,529,950
• 10 Day Avg. Volume: 39,913
• 30 Day Avg. Volume: 54,845
• 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$6.63
• Price Target Upside: -14.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$7.00 ▼(-9.21% 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.

Positive Factors

Operational Efficiency

Vulcan Steel Ltd.'s operational efficiency suggests effective management and resource utilization, which can support profitability even amid revenue challenges.

Cash Generation Ability

Strong cash generation from operations indicates that Vulcan Steel Ltd. can effectively convert sales into cash, supporting liquidity and potential reinvestment.

Positive Equity Position

Maintaining a positive equity position provides a buffer against financial instability, allowing Vulcan Steel Ltd. to leverage opportunities for growth.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can limit Vulcan Steel Ltd.'s ability to expand and invest in new opportunities, potentially affecting long-term competitiveness.

High Leverage

High leverage increases financial risk, potentially constraining Vulcan Steel Ltd.'s ability to invest in growth initiatives and weather economic downturns.

Declining Profit Margins

Decreasing profit margins suggest pressure on Vulcan Steel Ltd.'s profitability, which may impact its ability to sustain operations and invest in future growth.

Vulcan Steel Ltd. Business Overview & Revenue Model

Company Description

Vulcan 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 Money

Vulcan Steel Ltd. generates revenue primarily through the sale of steel products and related services. Key revenue streams include direct sales of steel, processing services (such as cutting, bending, and fabrication), and supply chain management for construction and industrial projects. The company also benefits from long-term contracts with major clients in the construction and manufacturing sectors, which provide a stable income base. Additionally, VSL has established significant partnerships with key suppliers and manufacturers, enabling it to offer competitive pricing and a broad range of products to its customers. The company's focus on innovation and efficiency in operations also contributes to its profitability by reducing costs and improving service delivery.

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	942.73M	948.15M	1.06B	1.24B	968.40M	731.46M
Gross Profit	297.49M	324.60M	374.95M	443.89M	387.08M	152.89M
EBITDA	92.60M	124.87M	163.02M	207.40M	232.75M	129.49M
Net Income	15.65M	15.73M	39.98M	87.90M	123.98M	61.10M
Balance Sheet
Total Assets	858.66M	858.66M	906.43M	1.00B	791.89M	580.78M
Cash, Cash Equivalents and Short-Term Investments	17.37M	17.37M	24.11M	20.32M	23.93M	10.17M
Total Debt	545.04M	545.04M	590.21M	649.73M	411.44M	323.80M
Total Liabilities	689.01M	689.01M	734.38M	818.29M	607.44M	494.92M
Stockholders Equity	169.65M	169.65M	172.06M	185.92M	184.45M	85.86M
Cash Flow
Free Cash Flow	83.84M	83.63M	142.02M	123.82M	-62.73K	99.79M
Operating Cash Flow	105.16M	104.95M	168.71M	146.77M	12.09M	105.45M
Investing Cash Flow	-17.26M	-17.22M	-23.98M	-193.24M	-11.54M	-822.00K
Financing Cash Flow	-94.55M	-94.19M	-141.18M	43.16M	12.38M	-108.70M

Vulcan Steel Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 7.71 is above the 20-day moving average (MA) of 7.25, above the 50-day MA of 7.16, and above the 200-day MA of 6.85, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 82.28 is Negative, 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	78 Outperform	AU$256.54M	13.05	25.46%	7.62%	-0.03%	23.78%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VSL	61 Neutral	AU$1.13B	71.46	9.13%	0.86%	-12.17%	-61.32%
SGM	58 Neutral	AU$3.61B	-213.93	0.14%	1.27%	3.98%	70.79%
BSL	57 Neutral	AU$13.14B	157.15	0.73%	2.48%	-4.46%	-89.42%

Vulcan Steel Ltd. Corporate Events

Vulcan Steel Addresses Compliance Filing Delay

Vulcan Steel Limited has addressed a compliance issue regarding the late filing of an ASX Appendix 3Y form due to an administrative error. The company has taken steps to ensure future compliance by reviewing its processes and planning additional training for its board members. This incident is considered isolated, and Vulcan Steel maintains that its current disclosure arrangements are adequate.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$6.25 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Ltd. Director Increases Shareholding

Vulcan Steel Ltd. has announced a change in the director’s interest, specifically involving Russell Chenu, who has increased his holdings in the company through Barratta Super Pty Ltd. The transactions occurred on 12, 13, and 17 November 2025, resulting in an acquisition of 10,000 ordinary shares, bringing the total to 93,496 shares held by Barratta Super Pty Ltd. This change reflects a strategic move by the director, potentially signaling confidence in the company’s future prospects and impacting shareholder perceptions positively.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$6.25 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Ltd. Announces Change in Director’s Shareholding

Vulcan Steel Ltd. announced a change in the director’s interest, with Adrian John Casey disposing of 17,214 ordinary shares valued at NZ$144,597.60. This adjustment in shareholding reflects ongoing management of personal investments and may influence stakeholder perceptions of the company’s governance and financial strategies.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$6.25 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Ltd. Announces Director’s Interest Change

Vulcan Steel Ltd. has announced a change in the director’s interest, specifically regarding Adrian John Casey’s holdings. The change involves the acquisition of 126,624 performance share rights valued at NZ$780,000, which are part of the company’s long-term incentive plan. This adjustment in share rights reflects the company’s ongoing efforts to align leadership incentives with its strategic goals, potentially impacting shareholder value and company performance.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$6.25 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Ltd. AGM Results: Leadership and Strategic Approvals

Vulcan Steel Ltd. held its Annual General Meeting, where several key resolutions were passed. These included the re-election of Adrian Casey as a director, the election of Rhys Jones as a director, and the granting of performance share rights to Gavin Street, the incoming Managing Director and CEO, as well as to Adrian Casey, the Chief Operating Officer. The resolutions were overwhelmingly supported, indicating strong shareholder confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Limited Hosts 2025 Hybrid Annual Shareholders Meeting

Vulcan Steel Limited announced its 2025 annual meeting of shareholders, which will be a hybrid event allowing both in-person and virtual attendance. The meeting will feature presentations and addresses from the Chair of the Board and management, providing insights into the company’s operations and strategic direction.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Ltd. Updates Dividend Distribution Details

Vulcan Steel Ltd. has updated its previous announcement regarding the final dividend distribution, specifically concerning the NZD/AUD exchange rate. This update impacts the nominal value of the resident withholding tax for New Zealand shareholders and the imputation credit rate per share, reflecting the company’s commitment to transparency and accuracy in financial reporting.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Ltd. Announces Change in Substantial Holding

Vulcan Steel Ltd. announced a change in its substantial holding, with Mayoral Trust Limited, as trustee of the Vulcan Continuity Trust, reducing its stake from 5.515% to 4.970%. This change was primarily due to the completion of Vulcan Steel’s accelerated renounceable entitlement offer, which resulted in the issuance of new shares. The adjustment in shareholding reflects the company’s strategic financial maneuvers to enhance its market presence and shareholder value.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$5.50 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.

Vulcan Steel Completes Acquisition of Roofing Industries

Vulcan Steel Limited has completed the acquisition of Roofing Industries Limited, a New Zealand-based manufacturer and supplier of steel roofing and cladding products. This strategic acquisition, effective from 30 September 2025, enhances Vulcan’s market position by expanding its product offerings and operational footprint in the residential, commercial, and rural markets across New Zealand.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$5.50 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 Hybrid 2025 Annual Shareholders Meeting

Vulcan Steel Limited has announced its 2025 Annual Meeting of Shareholders, scheduled for October 31, 2025. The meeting will be held in a hybrid format, allowing shareholders to attend either in person or virtually. This approach aims to enhance shareholder engagement and accessibility, reflecting Vulcan’s commitment to inclusive corporate governance practices.

The most recent analyst rating on (AU:VSL) stock is a Hold with a A$5.50 price target. To see the full list of analyst forecasts on Vulcan Steel Ltd. stock, see the AU:VSL Stock Forecast page.