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BlueScope Steel Limited (BLSFY)
OTHER OTC:BLSFY
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BlueScope Steel
(OTC:BLSFY)
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Rating:63Neutral
Price Target:
$106.00
▲(5.41% Upside)
The score is driven primarily by mixed financial performance (strong balance sheet but weak profitability and declining cash flow) and an unattractive valuation (very high P/E). Technicals are supportive due to strong uptrends and positive MACD, but extremely overbought momentum readings temper the benefit.
Positive Factors
Conservative capital structure
Very low leverage and a high equity ratio provide durable financial flexibility. This conservative capital structure supports investment through cycles, funds working capital or capex without heavy borrowing, and reduces bankruptcy risk—helping sustain operations and strategy over 2–6 months and beyond.
Strong gross margins
A near-37% gross margin indicates efficient production and favorable product mix in coated and building products. Durable manufacturing efficiency and pricing ability support long-term resilience to raw-material swings and protect operating margins across construction and industrial end markets.
Strategic acquisition interest
Formal NBIO from SGH and Steel Dynamics represents strategic validation of BlueScope’s asset base. A transaction could unlock value, enable focused ownership of Australia+ROW operations, and bring buyer capital/industry expertise—a structural corporate change with lasting strategic implications.
Negative Factors
Declining revenue
Falling top-line growth signals weakening demand or market share pressures in cyclical construction and manufacturing end markets. Persistent revenue contraction reduces operating leverage, constrains reinvestment capacity, and limits ability to restore margins absent structural demand recovery.
Weak profitability
Extremely low net margin shows difficulty converting healthy gross profits into bottom-line returns, reflecting cost, SG&A, or financing pressures. This weak profitability limits retained earnings, investor returns, and the firm’s ability to self-fund strategic initiatives over the medium term.
Deteriorating free cash flow
A sharp decline in free cash flow undermines capacity to fund capex, dividends or deleveraging without external financing. Persistent cash-generation weakness increases vulnerability to cyclical downturns, constrains strategic investments, and raises long-term execution and liquidity risk.
BlueScope Steel (BLSFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.08B
Dividend Yield2.06%
Average Volume (3M)157.00
Price to Earnings (P/E)167.9
Beta (1Y)1.19
Revenue Growth-5.62%
EPS Growth-88.83%
CountryUS
Employees16,500
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)1.81
Shares Outstanding87,615,486
10 Day Avg. Volume94
30 Day Avg. Volume157
Financial Highlights & Ratios
PEG Ratio-1.31
Price to Book (P/B)0.92
Price to Sales (P/S)0.61
P/FCF Ratio54.83
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit1.11
Enterprise Value/Ebitda9.78
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 through several key streams, primarily by selling steel products and solutions. The company's core revenue comes from its flat steel products, including hot rolled, cold rolled, and coated steel, which are sold to manufacturers and construction companies. Additionally, BlueScope earns income from its building products division, which offers pre-engineered steel buildings and roofing products. The company also benefits from international operations, exporting products to markets in Asia and North America. Significant partnerships with various industrial clients and construction firms enhance BlueScope's market presence and contribute to stable revenue generation. Furthermore, the company's focus on innovation and efficiency in production processes helps to reduce costs and improve margins, ultimately impacting its profitability.
BlueScope Steel Earnings Call Summary
Earnings Call Date:Feb 16, 2025
(Q2-2025)
| Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted BlueScope's resilience and strategic initiatives despite challenging macroeconomic conditions, with a focus on growth and productivity improvements. However, there were notable challenges in specific regions and ongoing pressures from steel market conditions.Q2-2025 Updates
Positive Updates
Resilient Profitability Amid Challenging Conditions
Despite the challenging macroeconomic environment, BlueScope remained profitable, achieving an underlying EBIT of $309 million and a return on invested capital of 8.1%.
Shareholder Returns and Strong Balance Sheet
BlueScope delivered $162 million in shareholder returns and maintained an $88 million net cash balance sheet.
Growth and Productivity Initiatives
The company is on track with its $200 million cost and productivity program, aiming for $500 million in incremental annual EBIT by 2030.
Safety Program Advancements
Nearly 200 risk control projects identified, with a reduction in TRIFR to 8.0%, showcasing improvements in safety practices.
Climate Action and Sustainability Efforts
Progress on climate strategy with collaborations and projects, including the Electric Arc Furnace project in New Zealand.
Upbeat Second Half FY '25 Outlook
Expected underlying EBIT improvement to $360 million to $430 million driven by improved spreads in the U.S. and stronger domestic volumes in Australia.
Negative Updates
Continued Pressure in Steel Markets
First half of FY '25 was impacted by bottom-of-the-cycle Asian steel spreads and weaker benchmark spreads in North America.
Underperformance in New Zealand
New Zealand faced very tough macro conditions, leading to significantly lower performance and challenges from elevated conversion costs.
Safety Challenges Persist
While TRIFR improved, it remains above the long-term range, and the potential severity measure increased slightly.
North American Business Challenges
Softer results across North American businesses with weaker spreads and margin normalization, particularly in BlueScope Coated Products.
Uncertain Tariff Impacts
Potential U.S. tariffs on imported steel could impact exports to North America, creating uncertainty around margins and pricing.
Company Guidance
During BlueScope's first-half FY '25 financial results call, the company reported an underlying EBIT of $309 million and a return on invested capital of 8.1% despite challenging macroeconomic conditions. The company delivered $162 million in shareholder returns and ended the period with an $88 million net cash balance. BlueScope is focused on a $200 million cost and productivity program, aiming for a $500 million incremental annual EBIT by 2030. The company also targets reductions in working capital of $200 million to $300 million over the next 18 months. Additionally, BlueScope announced a fully franked interim dividend of $0.30 per share, with an annual ordinary dividend target of $0.60 per share. For the second half of FY '25, underlying EBIT is expected to range from $360 million to $430 million, driven by improved U.S. spreads, stronger Australian volumes, and cost efficiencies. Safety initiatives have identified nearly 200 risk control projects, although TRIFR remains above the long-term range. The company is also advancing its climate strategy, including collaborations with Rio Tinto and BHP for the ESF pilot plant in Kwinana.BlueScope Steel Financial Statement Overview
Summary
BlueScope Steel exhibits a stable financial position with a strong balance sheet characterized by low leverage and a solid equity base. However, the company faces challenges in revenue growth and profitability, as evidenced by declining margins and cash flow performance.Income Statement
BlueScope Steel's income statement shows a mixed performance. The company has experienced a decline in revenue growth over the past year, with a negative growth rate of -4.40%. However, the gross profit margin remains relatively strong at 36.95%, indicating efficient production processes. The net profit margin is low at 0.52%, reflecting challenges in converting revenue into profit. EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.65
Positive
Balance Sheet
The balance sheet of BlueScope Steel is relatively strong, with a low debt-to-equity ratio of 0.08, indicating conservative leverage. The return on equity has decreased to 0.79%, which is a concern for shareholders seeking returns. The equity ratio stands at 67.61%, showing a solid equity base relative to total assets, which enhances financial stability.75
Positive
Cash Flow
Cash flow analysis reveals some weaknesses, with a significant decline in free cash flow growth at -59.43%. The operating cash flow to net income ratio is 16.87%, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 12.70%, suggesting limited cash available for reinvestment or distribution to shareholders.55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.29B | 16.25B | 17.06B | 18.17B | 18.99B | 12.87B |
| Gross Profit | 8.85B | 6.01B | 6.71B | 2.64B | 4.71B | 2.38B |
| EBITDA | 1.01B | 994.50M | 1.99B | 2.01B | 4.38B | 2.22B |
| Net Income | 83.80M | 83.80M | 805.70M | 1.01B | 2.81B | 1.19B |
Balance Sheet | ||||||
| Total Assets | 15.78B | 15.78B | 15.68B | 15.94B | 16.61B | 13.15B |
| Cash, Cash Equivalents and Short-Term Investments | 857.60M | 857.60M | 1.09B | 1.49B | 1.68B | 1.96B |
| Total Debt | 886.00M | 886.00M | 721.50M | 786.50M | 1.32B | 1.16B |
| Total Liabilities | 4.51B | 4.51B | 4.39B | 4.90B | 6.16B | 4.99B |
| Stockholders Equity | 10.67B | 10.67B | 10.72B | 10.47B | 9.78B | 7.63B |
Cash Flow | ||||||
| Free Cash Flow | 196.60M | 179.50M | 433.70M | 1.34B | 1.71B | 897.80M |
| Operating Cash Flow | 1.41B | 1.41B | 1.41B | 2.15B | 2.47B | 1.66B |
| Investing Cash Flow | -1.24B | -1.23B | -967.00M | -979.10M | -1.76B | -757.40M |
| Financing Cash Flow | -412.10M | -423.70M | -849.20M | -1.36B | -1.05B | -295.90M |
BlueScope Steel Technical Analysis
Positive
100.56
Price Trends
81.37
Positive
77.07
Positive
75.57
Positive
Market Momentum
6.60
Negative
81.16
Negative
96.50
Negative
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 100.56 is above the 20-day moving average (MA) of 89.45, above the 50-day MA of 81.37, and above the 200-day MA of 75.57, indicating a bullish trend. The MACD of 6.60 indicates Negative momentum. The RSI at 81.16 is Negative, neither overbought nor oversold. The STOCH value of 96.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLSFY.
BlueScope Steel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.23B | 14.33 | 4.80% | 7.02% | -16.69% | 585.38% | |
67 Neutral | $8.41B | 19.53 | 10.51% | 1.02% | -1.61% | -81.36% | |
67 Neutral | $7.72B | 15.82 | 5.21% | 2.92% | -2.53% | -36.08% | |
63 Neutral | $9.08B | 167.95 | 0.73% | 2.06% | -5.62% | -88.83% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $8.15B | -4.11 | -27.16% | ― | -6.76% | -255.94% | |
54 Neutral | $2.44B | -8.83 | -10.50% | ― | -5.79% | -5.30% |
* Basic Materials Sector Average
BLSFY
BlueScope Steel
103.58
41.86
67.81%
CLF
Cleveland-Cliffs
14.00
3.91
38.75%
CMC
Commercial Metals Company
74.42
24.47
48.98%
GGB
Gerdau SA
4.16
1.32
46.48%
SID
Companhia Siderúrgica Nacional
1.79
0.40
28.78%
TX
Ternium SA
41.70
15.38
58.43%
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.