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BlueScope Steel Limited (BLSFY)
OTHER OTC:BLSFY
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BlueScope Steel
(OTC:BLSFY)
Rating:77Outperform
Price Target:
$95.00
▲(22.30% Upside)
BlueScope Steel (BLSFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.86B
Dividend Yield2.35%
Average Volume (3M)13.00
Price to Earnings (P/E)19.2
Beta (1Y)1.04
Revenue Growth-6.31%
EPS Growth-34.21%
CountryUS
Employees16,500
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)1.28
Shares Outstanding87,721,970
10 Day Avg. Volume24
30 Day Avg. Volume13
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit1.36
Enterprise Value/Ebitda3.34
Forecast
1Y Price Target
$95.00Price Target Upside22.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
BlueScope Steel Business Overview & Revenue Model
Company DescriptionBlueScope Steel Limited (BLSFY) is a leading international steel products company headquartered in Australia. It operates in the global steel industry, focusing primarily on manufacturing and distributing innovative steel products and solutions. The company serves various sectors, including construction, automotive, and manufacturing, by providing essential products such as flat steel products, coated and painted steel building products, and high-performance steel solutions. BlueScope has a significant presence in Asia, North America, and the Pacific region, emphasizing sustainability and innovation in its offerings.
How the Company Makes MoneyBlueScope Steel generates revenue through the production and sale of steel products, focusing on several key revenue streams. The company earns income primarily from manufacturing and distributing flat steel products, which are used in building and infrastructure projects. Additionally, BlueScope produces coated and painted steel products that are widely used in the construction industry for roofing and walling applications. The company's revenue model is also supported by its Building Products segment, which provides steel solutions to commercial and residential markets. BlueScope's strategic partnerships and joint ventures, particularly in Asia and North America, enhance its market reach and contribute significantly to its revenue. The company's ability to innovate and adapt its products to meet customer needs, coupled with its emphasis on operational efficiency, plays a crucial role in its earnings.
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 demonstrates solid financial health with stable profitability and low leverage. The income statement shows effective cost management, although revenue decline is a concern. The balance sheet reflects a strong equity position, and the cash flow statement indicates robust cash generation despite a decline in free cash flow. The company is well-positioned but should focus on reversing the revenue downtrend.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 |
| EBITDA | 1.99B | 2.01B | 4.38B | 2.22B | 867.90M |
| Net Income | 805.70M | 1.01B | 2.81B | 1.19B | 96.50M |
Balance Sheet | |||||
| Total Assets | 15.68B | 15.94B | 16.61B | 13.15B | 11.56B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 1.49B | 1.68B | 1.96B | 1.40B |
| Total Debt | 721.50M | 786.50M | 1.32B | 1.16B | 1.32B |
| 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
77.68
Price Trends
77.16
Positive
74.34
Positive
70.92
Positive
Market Momentum
-0.36
Positive
51.33
Neutral
57.64
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 77.68 is below the 20-day moving average (MA) of 78.58, above the 50-day MA of 77.16, and above the 200-day MA of 70.92, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 57.64 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.86B | 19.19 | 5.09% | 2.35% | -6.31% | -34.21% | |
71 Outperform | $6.20B | 178.60 | 0.88% | 1.30% | -5.64% | -93.26% | |
70 Neutral | $6.35B | 10.85 | 4.89% | 8.35% | -16.83% | ― | |
66 Neutral | $5.85B | 10.77 | 5.77% | 3.49% | -6.55% | -37.93% | |
64 Neutral | $4.72B | 13.11 | 10.49% | ― | -18.58% | -35.32% | |
61 Neutral | $10.07B | 5.95 | 1.53% | 3.09% | 3.04% | -41.53% | |
57 Neutral | $4.81B | ― | -25.79% | ― | -12.14% | -4329.00% |
* Basic Materials Sector Average
Performance Comparison
BLSFY
BlueScope Steel
77.68
13.69
21.39%
CLF
Cleveland-Cliffs
9.91
-2.64
-21.04%
CMC
Commercial Metals Company
55.42
2.93
5.58%
GGB
Gerdau SA
3.02
-0.06
-1.95%
SIM
Grupo Simec SA De CV
27.54
-1.36
-4.71%
TX
Ternium SA
32.34
0.78
2.47%
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.