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BlueScope Steel
(OTC:BLSFY)
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Rating:68Neutral
Price Target:
$121.00
▲(20.33% Upside)
Action:Reiterated
Date:02/17/26
The score is driven primarily by mixed financial performance (strong balance sheet but weak margins and cash flow) and a constructive earnings outlook with upgraded capital returns and positive H2 guidance. Technicals are supportive with a clear uptrend and positive momentum signals. The main offset is valuation, with a very high P/E despite an attractive dividend yield.
Positive Factors
Conservative balance sheet and liquidity
BlueScope's conservatively geared balance sheet — very low debt-to-equity and essentially ungeared net debt at the half with multi-billion liquidity — provides durable financial flexibility to fund capex, deliver the upgraded buyback/dividend plan, and absorb cyclical steel price shocks without forcing distressed asset sales or emergency capital raises.
Negative Factors
Weak free cash flow generation
A steep decline in free cash flow and low conversion ratios indicate limited internal cash for reinvestment or distributions while capex is elevated. Sustained weak cash conversion reduces optionality, raises reliance on external funding if returns or buybacks are maintained, and constrains buffer against cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and liquidity
BlueScope's conservatively geared balance sheet — very low debt-to-equity and essentially ungeared net debt at the half with multi-billion liquidity — provides durable financial flexibility to fund capex, deliver the upgraded buyback/dividend plan, and absorb cyclical steel price shocks without forcing distressed asset sales or emergency capital raises.
Read all positive factors
BlueScope Steel (BLSFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.72B
Dividend Yield2.06%
Average Volume (3M)157.00
Price to Earnings (P/E)47.5
Beta (1Y)1.19
Revenue Growth-1.03%
EPS Growth-45.20%
CountryUS
Employees16,500
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)3.25
Shares Outstanding87,615,486
10 Day Avg. Volume94
30 Day Avg. Volume157
Financial Highlights & Ratios
PEG Ratio-1.32
Price to Book (P/B)0.92
Price to Sales (P/S)0.61
P/FCF Ratio54.83
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit7.31
Enterprise Value/Ebitda13.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.41
Revenue Forecast (FY)$12.04B
BlueScope Steel Business Overview & Revenue Model
Company Description
Headquartered in Melbourne, Australia, BlueScope Steel Limited, founded in 1885 (and known as BHP Steel Limited until its rebranding in November 2003), is a prominent global producer and supplier of metal-coated and painted steel building material...
How the Company Makes Money
BlueScope makes money primarily by selling steel and steel-related products and solutions through a mix of upstream steelmaking and downstream value-added processing and building products.
Key revenue streams include:
- Flat steel manufacturing a...
BlueScope Steel Earnings Call Summary
Earnings Call Date:Feb 15, 2026
(Q2-2026)
| Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call is overall positive. Management reported a strong H1 operating performance (underlying EBIT up sharply YoY), an essentially ungeared balance sheet at the half, clear project progress and substantive cost savings realized. Management upgraded shareholder returns materially (targeting $3.00 per share in 2026 and 75% of free cash flow), provided constructive H2 guidance, and laid out credible growth and property realization programs. Notable headwinds remain — sustained low Asian spreads, transitional costs in New Zealand, an ongoing BCP turnaround and a recent safety fatality — and the company is modestly increasing its net debt target. On balance, the positives (earnings, liquidity, returns, project delivery and cost programs) outweigh the lowlights, yielding a constructive outlook but with clear execution and commodity risk factors to watch.Positive Updates
Strong H1 Profitability and Earnings Growth
Underlying EBIT of $558 million for H1, up $249 million on the prior corresponding period (≈81% increase). Reported net profit after tax of $391 million.
Negative Updates
Sustained Low Asian Steel Spreads
Historically low Asian steel spreads (driven by elevated Chinese exports reportedly >120 million tonnes) depressed regional pricing and weighed on Australia realized spreads and export prices, contributing to margin pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong H1 Profitability and Earnings Growth
Underlying EBIT of $558 million for H1, up $249 million on the prior corresponding period (≈81% increase). Reported net profit after tax of $391 million.
Read all positive updates
Company Guidance
Management guided second‑half underlying EBIT of $620–700m (assumes FX $0.70), driven by stronger U.S. spreads and volumes offsetting softer Asian spreads and currency headwinds, and announced a rebased capital return program to deliver $3.00 per share in calendar 2026 (comprising a $1.00 special, $1.30 annual ordinary dividend — $0.65 interim — plus $0.70 via a $310m on‑market buyback), with a new policy to return at least 75% of free cash flow (up from 50%) and a revised net‑debt target of up to $1.5bn (H1 net debt was $2m with ~$3.2bn liquidity). First‑half metrics: underlying EBIT $558m (up $249m), reported NPAT $391m, group ROIC 8.1%, H1 CapEx $681m (CapEx expected to peak this year and step down in H1 FY27), $190m of annualized savings delivered from the $200m program and a new $150m cost program due to be at full run‑rate in FY27; growth targets include a $500m EBIT uplift by 2030 (North America >$200m, Australia >$125m, Asia/NZ ~$150m), capacity adds of +300ktpa at North Star and +240ktpa from MCL7, acceleration of realization of ~1,200ha surplus land (33ha sold for $76m) and expected distributions of >$1.3bn to shareholders in 2026.BlueScope Steel Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
75
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.46B | 16.25B | 17.06B | 18.17B | 18.99B | 12.87B |
| Gross Profit | 2.09B | 6.01B | 6.71B | 2.64B | 4.71B | 2.38B |
| EBITDA | 1.16B | 994.50M | 1.99B | 2.01B | 4.38B | 2.22B |
| Net Income | 288.33M | 83.80M | 805.70M | 1.01B | 2.81B | 1.19B |
Balance Sheet | ||||||
| Total Assets | 15.77B | 15.78B | 15.68B | 15.94B | 16.61B | 13.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.08B | 857.60M | 1.09B | 1.49B | 1.68B | 1.96B |
| Total Debt | 1.56B | 886.00M | 721.50M | 786.50M | 1.32B | 1.16B |
| Total Liabilities | 4.36B | 4.51B | 4.39B | 4.90B | 6.16B | 4.99B |
| Stockholders Equity | 10.77B | 10.67B | 10.72B | 10.47B | 9.78B | 7.63B |
Cash Flow | ||||||
| Free Cash Flow | 268.16M | 179.50M | 433.70M | 1.34B | 1.71B | 897.80M |
| Operating Cash Flow | 1.62B | 1.41B | 1.41B | 2.15B | 2.47B | 1.66B |
| Investing Cash Flow | -1.21B | -1.23B | -967.00M | -979.10M | -1.76B | -757.40M |
| Financing Cash Flow | -133.44M | -423.70M | -849.20M | -1.36B | -1.05B | -295.90M |
BlueScope Steel Technical Analysis
Positive
100.56
Price Trends
111.89
Negative
104.49
Positive
91.62
Positive
Market Momentum
-0.75
Positive
47.50
Neutral
63.34
Neutral
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 below the 20-day moving average (MA) of 113.87, below the 50-day MA of 111.89, and above the 200-day MA of 91.62, indicating a neutral trend. The MACD of -0.75 indicates Positive momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 63.34 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.70B | 15.17 | 4.74% | 7.02% | -7.33% | ― | |
68 Neutral | $9.72B | 47.49 | 2.76% | 2.06% | -1.03% | -45.20% | |
62 Neutral | $6.93B | 11.71 | 11.88% | 1.02% | 15.23% | 1535.96% | |
62 Neutral | $8.31B | 30.87 | 2.53% | 2.92% | 4.46% | -47.34% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
45 Neutral | $5.36B | -3.93 | -20.91% | ― | 1.58% | 3.88% | |
41 Neutral | $1.34B | -3.86 | -12.83% | ― | 2.16% | 20.46% |
* Basic Materials Sector Average
BLSFY
BlueScope Steel
111.13
35.75
47.43%
CLF
Cleveland-Cliffs
9.40
-0.09
-0.95%
CMC
Commercial Metals Company
62.64
11.42
22.29%
GGB
Gerdau SA
4.50
1.66
58.34%
SID
Companhia Siderúrgica Nacional
1.01
-0.46
-31.29%
TX
Ternium SA
44.30
14.57
49.02%
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.