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BlueScope Steel Limited (BLSFY)
OTHER OTC:BLSFY
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BlueScope Steel
(OTC:BLSFY)
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Rating:54Neutral
Price Target:
$74.00
▲(10.10% Upside)
BlueScope Steel's overall stock score is primarily influenced by its stable financial position, despite challenges in revenue growth and profitability. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation concerns. The dividend yield provides some support, but overall, the stock faces significant headwinds.
BlueScope Steel (BLSFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.01B
Dividend Yield2.52%
Average Volume (3M)208.00
Price to Earnings (P/E)111.0
Beta (1Y)1.07
Revenue Growth-5.62%
EPS Growth-88.83%
CountryUS
Employees16,500
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)1.81
Shares Outstanding87,721,970
10 Day Avg. Volume0
30 Day Avg. Volume208
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit0.63
Enterprise Value/Ebitda4.79
Forecast
1Y Price Target
$74.00Price Target Upside10.10% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 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:Aug 17, 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 shows a stable financial position with a strong balance sheet characterized by low leverage and a solid equity base. However, challenges are evident in revenue growth and profitability, with declining margins and cash flow performance. Continued focus on operational efficiency and cash flow management is crucial.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 | 16.40B | 16.25B | 17.06B | 18.17B | 18.99B | 12.87B |
| Gross Profit | 11.19B | 6.01B | 6.71B | 2.64B | 4.71B | 2.38B |
| EBITDA | 1.47B | 994.50M | 1.99B | 2.01B | 4.38B | 2.22B |
| Net Income | 545.50M | 83.80M | 805.70M | 1.01B | 2.81B | 1.19B |
Balance Sheet | ||||||
| Total Assets | 16.02B | 15.78B | 15.68B | 15.94B | 16.61B | 13.15B |
| Cash, Cash Equivalents and Short-Term Investments | 822.00M | 857.60M | 1.09B | 1.49B | 1.68B | 1.96B |
| Total Debt | 734.50M | 886.00M | 721.50M | 786.50M | 1.32B | 1.16B |
| Total Liabilities | 4.21B | 4.51B | 4.39B | 4.90B | 6.16B | 4.99B |
| Stockholders Equity | 11.16B | 10.67B | 10.72B | 10.47B | 9.78B | 7.63B |
Cash Flow | ||||||
| Free Cash Flow | 177.20M | 179.50M | 433.70M | 1.34B | 1.71B | 897.80M |
| Operating Cash Flow | 1.25B | 1.41B | 1.41B | 2.15B | 2.47B | 1.66B |
| Investing Cash Flow | -1.10B | -1.23B | -967.00M | -979.10M | -1.76B | -757.40M |
| Financing Cash Flow | -716.30M | -423.70M | -849.20M | -1.36B | -1.05B | -295.90M |
BlueScope Steel Technical Analysis
Negative
67.21
Price Trends
74.25
Negative
75.17
Negative
71.63
Negative
Market Momentum
-1.27
Positive
24.74
Positive
0.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLSFY, the sentiment is Negative. The current price of 67.21 is below the 20-day moving average (MA) of 73.50, below the 50-day MA of 74.25, and below the 200-day MA of 71.63, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 24.74 is Positive, neither overbought nor oversold. The STOCH value of 0.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.38B | 183.60 | 0.88% | 1.22% | -5.64% | -93.26% | |
71 Outperform | $5.98B | 11.23 | 5.77% | 3.30% | -6.55% | -37.93% | |
69 Neutral | $6.91B | 11.82 | 4.89% | 7.42% | -16.83% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $6.01B | 110.98 | 0.73% | 2.52% | -5.62% | -88.83% | |
53 Neutral | $1.91B | ― | -15.57% | 14.90% | -10.77% | -192.16% | |
52 Neutral | $6.52B | ― | -25.79% | ― | -12.14% | -4329.00% |
* Basic Materials Sector Average
BLSFY
BlueScope Steel
67.21
-6.12
-8.35%
CLF
Cleveland-Cliffs
13.83
0.95
7.38%
CMC
Commercial Metals Company
59.10
6.78
12.96%
GGB
Gerdau SA
3.24
0.12
3.85%
SID
Companhia Siderúrgica Nacional
1.54
-0.43
-21.83%
TX
Ternium SA
36.40
4.55
14.29%
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.