Education
About Us
Working with TipRanks
Follow Us
BlueScope Steel Limited (BLSFY)
OTHER OTC:BLSFY
Top Page
BlueScope Steel
(OTC:BLSFY)
Rating:77Outperform
Price Target:
$87.00
▲(17.76%Upside)
BlueScope Steel (BLSFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.46B
Dividend Yield2.39%
Average Volume (3M)0.00
Price to Earnings (P/E)18.2
Beta (1Y)1.07
Revenue Growth-6.31%
EPS Growth-34.21%
CountryUS
Employees16,500
SectorBasic Materials
Sector Strength69
IndustrySteel
Share Statistics
EPS (TTM)1.28
Shares Outstanding87,721,970
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)0.91
Price to Sales (P/S)0.00
P/FCF Ratio7.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
BlueScope Steel Business Overview & Revenue Model
Company DescriptionBlueScope Steel Limited produces and sells metal coated and painted steel building products in Australia, New Zealand, Thailand, Indonesia, Malaysia, Vietnam, North America, the Pacific Islands, and Asia. The company operates through five segments: Australian Steel Products, North Star BlueScope Steel, Building Products Asia & North America, Buildings North America, and New Zealand & Pacific Islands. It offers steel slabs, plates, hot and cold rolled coils, coated and painted strip products, roof and wall claddings, and purlins and house framings under the LYSAGHT steel building products, COLORBOND steel, COLORSTEEL, ZINCALUME steel, GALVABOND steel, GALVASPAN steel, BlueScope Zacs, and SuperDyma brands. The company also provides engineered building solutions to industrial and commercial markets under the Butler, Varco Pruden, EcoBuild, and PROBUILD brands. It serves customers in the residential and non-residential building, and construction; manufacturing, automotive and transport, agricultural, and mining industries directly, as well as through a network of service centers and steel distribution businesses. The company was formerly known as BHP Steel Limited and changed its name to BlueScope Steel Limited in November 2003. BlueScope Steel Limited was founded in 1885 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyBlueScope Steel generates revenue primarily through the production and sale of steel products. The company's key revenue streams include the sale of flat steel products like hot rolled and cold rolled coil, coated and painted steel products, and pre-engineered building solutions. BlueScope's revenue is driven by demand from the construction, manufacturing, automotive, and infrastructure sectors. Significant partnerships and joint ventures, such as its North Star BlueScope Steel operations in the United States and various collaborations in Asia, contribute to its earnings by expanding its market reach and operational capabilities. Additionally, the company's focus on innovation and sustainability helps it maintain competitive pricing and customer loyalty, further enhancing its revenue potential.
BlueScope Steel Earnings Call Summary
Earnings Call Date:Feb 16, 2025
(Q2-2025)
| % Change Since: ―|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
BlueScope demonstrated resilience with profitable results and significant shareholder returns despite facing challenging macroeconomic conditions and cost inflation pressures. The company's outlook for the second half of FY '25 is optimistic, driven by improved spreads in the U.S. and stronger domestic volumes in Australia. However, the underperformance in New Zealand and challenges in the U.S. market weigh on the overall sentiment.Q2-2025 Updates
Positive Updates
Resilient Profitability Despite Challenging Conditions
BlueScope reported an underlying EBIT of $309 million and a return on invested capital of 8.1%, maintaining profitability despite bottom-of-cycle conditions and a challenging macroeconomic environment.
Significant Shareholder Returns
The company delivered $162 million in shareholder returns and finished with an $88 million net cash balance sheet.
Cost and Productivity Program
BlueScope is underway with a $200 million cost and productivity program, aiming for $500 million in incremental annual EBIT by 2030.
Improved Outlook for Second Half FY '25
Underlying EBIT in the second half of FY '25 is expected to be in the range of $360 million to $430 million, driven by improved spreads in the U.S. and stronger domestic volumes in Australia.
Safety Initiatives
Nearly 200 risk control projects were identified, and TRIFR reduced to 8.0%, though it remains above the long-term range.
Negative Updates
Weaker Performance in New Zealand
New Zealand faced very tough macro conditions, resulting in a significantly lower performance and an underlying EBIT of just $3 million.
Cost Inflation Pressures
The company experienced ongoing cost inflation pressures, impacting the overall performance.
Lagging Safety Indicators
While TRIFR reduced, the potential severity measure increased slightly, indicating mixed safety performance.
Challenges in the U.S. Market
North American businesses saw a softer result with an underlying EBIT of $182 million due to weaker spreads and lower volumes.
Company Guidance
In a recent call, BlueScope provided guidance for the second half of FY'25, expecting underlying EBIT to be between $360 million and $430 million, an improvement from the first half's $309 million. This optimism is driven by improved spreads in the U.S., stronger domestic volumes in Australia, and benefits from a group-wide cost and productivity program. The company is targeting $200 million in cost and productivity improvements by FY'26 and aims for a $500 million incremental annual EBIT by 2030. BlueScope also plans to reduce working capital by $200 million to $300 million over the next 18 months. The company maintains a strong balance sheet with an $88 million net cash position and has announced a $0.30 per share fully franked interim dividend, while extending its buyback program.BlueScope Steel Financial Statement Overview
Summary
BlueScope Steel exhibits solid financial health with strong cost management and low leverage. Despite a revenue decline, the company maintains stable profitability and a robust equity position.Income Statement
BlueScope Steel demonstrated a solid performance in its income statement. The Gross Profit Margin for 2024 was approximately 39.2%, indicating efficient cost management. However, the company experienced a decline in revenue from $18.17 billion in 2023 to $17.06 billion in 2024, resulting in a negative revenue growth rate of about -6.5%. The Net Profit Margin stood at 4.7%, which is modest. The EBIT margin was 7.4%, reflecting stable operational efficiency despite the revenue decline.75
Positive
Balance Sheet
The balance sheet of BlueScope Steel shows a strong position with a Debt-to-Equity Ratio of 0.07, indicating low leverage. The Equity Ratio is a robust 68.4%, signifying a high level of asset financing through equity. The Return on Equity (ROE) is 7.51%, showing a reasonable return on shareholders' investments. Overall, the company's low debt levels and high equity ratio provide a stable financial foundation.80
Positive
Cash Flow
The cash flow statement reveals a decline in Free Cash Flow from $1.34 billion in 2023 to $433.7 million in 2024, marking a decrease of roughly 67.7%. However, the Operating Cash Flow to Net Income Ratio is favorable at 1.75, indicating strong cash generation relative to net income. Despite the drop in Free Cash Flow, the company maintains healthy operating cash flow, which mitigates concerns about liquidity.70
Positive
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.06B | 18.17B | 18.99B | 12.87B | 11.28B | Gross Profit |
| 6.71B | 2.64B | 4.71B | 2.38B | 1.25B | EBIT |
| 1.27B | 1.35B | 3.63B | 1.65B | 415.80M | EBITDA |
| 1.99B | 2.01B | 4.38B | 2.22B | 867.90M | Net Income Common Stockholders |
| 805.70M | 1.01B | 2.81B | 1.19B | 96.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.09B | 1.49B | 1.68B | 1.96B | 1.40B | Total Assets |
| 15.68B | 15.94B | 16.61B | 13.15B | 11.56B | Total Debt |
| 721.50M | 786.50M | 1.32B | 1.16B | 1.32B | Net Debt |
| -364.00M | -703.30M | -367.10M | -798.10M | -79.10M | Total Liabilities |
| 4.39B | 4.90B | 6.16B | 4.99B | 4.52B | Stockholders Equity |
| 10.72B | 10.47B | 9.78B | 7.63B | 6.54B |
| Cash Flow | Free Cash Flow | |||
| 433.70M | 1.34B | 1.71B | 897.80M | 238.10M | Operating Cash Flow |
| 1.41B | 2.15B | 2.47B | 1.66B | 817.90M | Investing Cash Flow |
| -967.00M | -979.10M | -1.76B | -757.40M | -570.30M | Financing Cash Flow |
| -849.20M | -1.36B | -1.05B | -295.90M | -483.80M |
BlueScope Steel Technical Analysis
Positive
73.88
Price Trends
72.83
Positive
71.76
Positive
69.54
Positive
Market Momentum
0.12
Positive
46.64
Neutral
7.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLSFY, the sentiment is Positive. The current price of 73.88 is below the 20-day moving average (MA) of 75.48, above the 50-day MA of 72.83, and above the 200-day MA of 69.54, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 7.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLSFY.
BlueScope Steel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.46B | 18.15 | 5.09% | 2.39% | -6.31% | -34.21% | |
74 Outperform | $4.57B | 7.05 | 19.79% | ― | -15.93% | 86.43% | |
73 Outperform | $5.93B | 10.75 | 5.86% | 2.83% | -9.33% | -51.03% | |
70 Outperform | $5.47B | 80.35 | 1.78% | 1.49% | -7.93% | -89.29% | |
58 Neutral | $5.87B | 73.52 | -2.75% | 12.03% | -10.20% | -152.18% | |
51 Neutral | $2.04B | -1.26 | -21.09% | 3.98% | 2.91% | -30.49% | |
48 Neutral | $3.62B | ― | -17.57% | ― | -15.00% | -423.14% |
* Basic Materials Sector Average
Performance Comparison
BLSFY
BlueScope Steel
73.88
8.08
12.28%
CLF
Cleveland-Cliffs
7.31
-7.40
-50.31%
CMC
Commercial Metals Company
48.41
-1.62
-3.24%
GGB
Gerdau SA
3.05
0.06
2.01%
SIM
Grupo Simec SA De CV
27.61
-3.88
-12.32%
TX
Ternium SA
29.86
-3.72
-11.08%
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.