Bluescope Steel (BSL) AI Stock Analysis

• Market Cap: $10.44B
• Dividend Yield: 2.73%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.07
• Revenue Growth: -5.64%
• EPS Growth: -33.77%
• Country: AU
• Employees: 16,500
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): 0.40
• Shares Outstanding: 438,609,860
• 10 Day Avg. Volume: 1,542,901
• 30 Day Avg. Volume: 1,757,535
• PEG Ratio: -0.59
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.00
• 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: $27.39
• Price Target Upside: 15.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Bluescope Steel Limited demonstrates solid financial health and strategic direction, supported by strong profitability and low leverage. Despite challenges from declining revenue and free cash flow, the company's growth initiatives and productivity programs provide optimism. Technical analysis suggests caution in the short term, while the valuation remains fair. The earnings call underscores resilience and strategic focus, positioning Bluescope well in a challenging market environment.

Positive Factors

Financial Strategy

BSL extended the annual on-market share buyback to A$270mn, which is considered prudent and counter-cyclical.

Outlook

The outlook for the Asian and US Buildings & Coated Products is better than expected.

Negative Factors

Earnings

BSL reported 2H FY24 EBIT at the bottom end of the A$620-690mn guidance range.

Bluescope Steel Business Overview & Revenue Model

Company Description

BlueScope Steel Limited produces and sells metal coated and painted steel building products in Australia, New Zealand, Asia, North America, and internationally. The company operates through five segments: Australian Steel Products, North Star BlueScope Steel, Building Products Asia & North America, Buildings and Coated Products 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, 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 Money

BlueScope Steel Limited generates revenue through the production and sale of a broad range of steel products primarily to the construction and manufacturing industries. Its primary revenue streams include the sale of flat steel products like COLORBOND® and ZINCALUME® for roofing, walling, and structural applications. The company also earns income from its steelmaking operations in Australia and New Zealand, as well as its network of manufacturing, coating, and painting facilities across Asia and North America. Additionally, BlueScope leverages strategic partnerships and joint ventures, such as the North Star BlueScope Steel joint venture in the United States, which contribute significantly to its earnings through the supply of hot rolled coil. The company's focus on innovation, sustainability, and customer-centric solutions enhances its competitive edge and revenue potential in the global steel market.

Bluescope Steel Financial Statement Overview

Summary

Bluescope Steel Limited exhibits strong profitability and financial stability with respectable margins and low leverage. However, the recent decline in revenue and free cash flow poses challenges. The company's ability to sustain operational efficiency and maintain robust financial health amidst revenue fluctuations will be crucial for future performance.

Income Statement

Bluescope Steel Limited demonstrated a robust gross profit margin of 39.15% and a net profit margin of 4.72% in the 2024 fiscal year. However, there was a notable revenue decline of 6.16% compared to the previous year. The EBIT margin stood at 7.43%, and the EBITDA margin was 11.69%. Overall, the company shows solid profitability despite declining revenue, indicating efficiency in managing costs.

Balance Sheet

The company has a healthy debt-to-equity ratio of 0.07, suggesting low leverage which is advantageous in maintaining financial stability. The return on equity (ROE) is 7.51%, indicating a reasonable return to shareholders. Additionally, the equity ratio of 68.39% signifies strong equity financing, providing a cushion against financial fluctuations.

Cash Flow

Bluescope Steel's free cash flow decreased by 67.68% from the previous year, reflecting potential challenges in generating cash. The operating cash flow to net income ratio of 1.75 and a free cash flow to net income ratio of 0.54 highlight that the company generates adequate operating cash relative to net income, but there's room for improvement in free cash flow.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
16.40B	17.06B	18.17B	18.99B	12.87B	11.28B
	Gross Profit
11.19B	6.68B	2.64B	4.71B	2.38B	1.25B
	EBIT
1.57B	1.27B	1.35B	3.63B	1.65B	415.80M
	EBITDA
1.47B	2.02B	2.15B	4.38B	2.22B	864.30M
	Net Income Common Stockholders
545.50M	805.70M	1.01B	2.81B	1.19B	96.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
822.00M	1.09B	1.49B	1.68B	1.96B	1.40B
	Total Assets
16.02B	15.68B	15.94B	16.61B	13.15B	11.56B
	Total Debt
734.50M	721.50M	786.50M	1.32B	1.16B	1.32B
	Net Debt
-87.50M	-364.00M	-703.30M	-367.10M	-798.10M	-79.10M
	Total Liabilities
4.21B	4.39B	4.90B	6.16B	4.99B	4.52B
	Stockholders Equity
11.16B	10.72B	10.47B	9.78B	7.63B	6.54B
Cash Flow		Free Cash Flow
177.20M	433.70M	1.34B	1.71B	897.80M	238.10M
	Operating Cash Flow
1.25B	1.41B	2.15B	2.47B	1.66B	817.90M
	Investing Cash Flow
-1.10B	-967.00M	-979.10M	-1.76B	-757.40M	-570.30M
	Financing Cash Flow
-716.30M	-849.20M	-1.36B	-1.05B	-295.90M	-483.80M

Bluescope Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.78
• 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:BSL, the sentiment is Positive. The current price of 23.78 is above the 20-day moving average (MA) of 22.91, above the 50-day MA of 22.54, and above the 200-day MA of 21.24, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 80.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BSL.

Bluescope Steel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSL	72 Outperform	$10.44B	19.27	5.09%	2.73%	-5.64%	-33.77%
AMC	68 Neutral	AU$33.03B	16.74	20.24%	5.45%	-1.42%	25.16%
Sector *	50 Neutral	$1.97B	-1.14	-21.33%	3.61%	1.59%	-30.68%

Bluescope Steel Corporate Events

BlueScope Steel Announces Change in Company Secretary

BlueScope Steel Limited has announced a change in its company secretary position, with Penny Grau resigning and Virginia Porter, the Chief Legal Officer, assuming the role effective 22 April 2025. This transition is expected to maintain the company’s compliance and communication with the ASX, ensuring continuity in its corporate governance and operational efficiency.

Bluescope Steel Announces Cessation of Securities

Bluescope Steel Limited announced the cessation of 117,647 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may impact the company’s capital structure and could have implications for its stakeholders, reflecting on its operational adjustments in the market.

Bluescope Steel Issues Unquoted Equity Securities for Employee Incentive

Bluescope Steel Limited announced the issuance of unquoted equity securities as part of an employee incentive scheme. This move is expected to enhance employee engagement and align interests with company performance, potentially impacting the company’s operational dynamics and stakeholder relations.

BlueScope Appointed as Advisor to Whyalla Steelworks Administrators

BlueScope Steel Limited has been appointed as a steelmaking advisor to the administrators of the Whyalla Steelworks group. While BlueScope will provide technical and operational support, it is not committing financial resources to the administration process. The company is considering potential participation in a future sale process, contingent on due diligence and return on investment criteria. This move highlights BlueScope’s strategic interest in maintaining its influence within the steel industry, particularly in the Asia Pacific region, during challenging times.

BlueScope Steel Announces Director’s Share Rights Acquisition

BlueScope Steel Limited announced a change in the director’s interest as K’Lynne Johnson acquired 1,325 unvested Share Rights under the FY2025 Non-Executive Director Fee Sacrifice Plan. This move reflects the company’s ongoing commitment to align director compensation with shareholder interests, potentially impacting the company’s governance and stakeholder relations.

BlueScope Steel Announces Director’s Share Rights Grant

BlueScope Steel Limited announced a change in the interest of its director, Jennifer Lambert, who has been granted 879 Share Rights under the FY2025 Non-Executive Director Fee Sacrifice Plan. This move reflects the company’s strategic approach to compensating its directors through share-based incentives, potentially aligning their interests with those of the shareholders. The Share Rights are subject to a service-based condition and will be converted into ordinary shares, which will be held in trust until the restriction period expires.

BlueScope Steel Announces Director’s Interest Change

BlueScope Steel Limited announced a change in the director’s interest, with Ewen Crouch acquiring 1,758 share rights under the FY2025 Non-Executive Director Fee Sacrifice Plan. This move reflects the company’s ongoing efforts to align director compensation with company performance, potentially impacting shareholder value and corporate governance practices.

BlueScope Steel Director Acquires Share Rights Under Fee Sacrifice Plan

BlueScope Steel Limited announced a change in the director’s interest, with Jane McAloon acquiring 2,500 share rights under the FY2025 Non-Executive Director Fee Sacrifice Plan. This move reflects the company’s ongoing efforts to align director incentives with shareholder interests, potentially impacting its governance and stakeholder relations positively.

Bluescope Steel Issues Unquoted Equity Securities to Employees

Bluescope Steel Limited announced the issuance of unquoted equity securities under an employee incentive scheme, with a total of 6,462 rights being issued. This move is part of the company’s strategy to enhance employee engagement and align their interests with the company’s growth objectives, potentially impacting its operational dynamics and stakeholder relations positively.

BlueScope Steel Adjusts Financial Figures Amid ASX Inquiry

BlueScope Steel Limited, a key player in the steel manufacturing industry, has issued a correction regarding its 1H FY2025 financial results. Specifically, it has adjusted the underlying EBITDA figure in its Analyst Support Materials pack from A$137 million to US$91 million. This correction comes after a request for clarification from the ASX concerning peer information and data sources in its financial presentation. The correction and updates are significant as they impact the understanding of the company’s financial health and its competitive position in the industry. BlueScope’s North Star division continues to demonstrate strong margin performance supported by its strategic location and market dynamics.

BlueScope Steel Extends Share Buy-Back Program

BlueScope Steel Limited has announced an extension of its existing on-market buy-back of ordinary shares. This move indicates the company’s commitment to returning value to shareholders and could enhance the stock’s value by reducing the number of shares outstanding, reflecting confidence in the company’s financial health and future prospects.

BlueScope Steel Releases 1H FY2025 Financial Results

BlueScope Steel Limited has released its financial results for the first half of FY2025. The announcement highlights the company’s performance and provides insights into its current financial standing. While the details of the financial performance are not specified in the release, such updates typically impact the company’s operations and industry positioning, influencing stakeholders’ decisions.

BlueScope Steel Reports 1H FY2025 Financial Results

BlueScope Steel Limited announced its financial results for the first half of FY2025, highlighting its performance amidst ongoing industry challenges. While the presentation cautioned against relying solely on past performance as an indicator of future results, stakeholders are advised to consider the company’s current market position and strategic initiatives when evaluating its financial outlook.

BlueScope Reports Resilient 1H FY2025 Results Amid Challenging Market Conditions

BlueScope Steel Limited reported a net profit after tax of $179.1 million for the first half of fiscal year 2025, marking a $260.2 million decrease compared to the previous year. Despite challenges like soft steel spreads and demand conditions, the company achieved an underlying EBIT of $309 million, demonstrating resilience and a strong business position. BlueScope is investing in securing sustainable earnings through projects like the No.6 Blast Furnace Reline & Upgrade and electric arc furnace projects, and continues to focus on high-margin products such as COLORBOND® steel. The company’s financial strategy includes distributing substantial free cash flow to shareholders and maintaining a robust balance sheet, while also advancing its sustainability efforts and optimizing its working capital.

Bluescope Steel Declares Interim Dividend

Bluescope Steel Limited announced a new interim dividend of AUD 0.30 per share, fully franked, covering the six-month period ending December 31, 2024. This dividend highlights the company’s financial stability and commitment to returning value to shareholders, with the ex-date set for February 21, 2025, and the payment date scheduled for March 25, 2025.

BlueScope Steel Reports Decline in Profit Amid Challenging Market Conditions

BlueScope Steel Limited reported its financial results for the first half of the fiscal year 2025, revealing a decline in sales revenue and net profit compared to the previous year. The company faced a 7% decrease in sales revenue, attributed to lower selling prices, and a significant drop in underlying NPAT by 63%, driven by reduced steel spreads and increased costs. Despite the challenges, BlueScope maintained robust financial liquidity and returned $162 million to shareholders through dividends and buy-backs, with the Board approving a 30.0 cents per share interim dividend. The company expects a moderate recovery in underlying EBIT for the second half of FY2025, with projections between $360 million and $430 million, contingent on market conditions.