BlueScope Steel Ltd BSL

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A$22.96 −0.14 (0.61%)

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As of Apr 19, 2024 6:10am Delayed Price Closed

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Company Report

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Strong Earnings at North Star Guides Full-Year Outlook for BlueScope Steel

Mathew Hodge Feb 19, 2024

BlueScope’s business strategy targets earnings growth and maintainable returns by optimizing its cost structure and pursuing capacity expansion and bolt on acquisitions. Management’s focus includes financial discipline, cost control, efficiency, and disciplined capital allocation in capacity and technology given the firm lacks any ability to influence the direction and magnitude of the steel spreads.

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Price vs Fair Value

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BSL is trading at a 40% premium.

Price

A$23.10

Apr 18, 2024

Fair Value

A$86.50

Aug 21, 2023

Uncertainty

High

1-Star Price: A$94.75
5-Star Price: A$4.60
Economic Moat: Dxnb
Capital Allocation: Cnsjgqhv

Bulls Say, Bears Say

Bulls

Reductions in Chinese overcapacity may act to maintain steelmaking spreads at attractive levels and above historical averages.

Bears

The addition of competing electric arc furnace-based steel capacity leads to a flattening in the North American steel cost curve reducing North Star margins.

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News

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Rio Tinto, BHP, BlueScope to Partner on Low-Carbon Steel From Iron Ore

Global News Select Feb 9, 2024 12:10am

Trading Information

Previous Close Price: A$23.10
Day Range: A$22.45–22.98
52-Week Range: A$17.23–24.26
Bid/Ask: A$22.59 / A$23.20
Market Cap: A$10.18 Bil
Volume/Avg: 1.8 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized): 10.89
Price/Sales: 0.61
Dividend Yield (Trailing): 2.18%
Dividend Yield (Forward): 2.18%
Total Yield: 5.70%

Company Profile

BlueScope is an Australian-based steelmaking firm with five business units. The Australian Steel Products segment mainly specializes in branded coated and painted flat steel products, sold domestically. North Star is the group’s U.S. mini-mill specializing in the production of hot rolled coil for U.S. construction and automotive sectors. Building Products Asia and North America operate across Southeast Asia, China, India, and the U.S. West Coast involved in metal-coating, painting, and roll-forming. New Zealand Steel and the Pacific Islands business produces flat and long steel products for New Zealand and building components for the Pacific Islands. The Buildings North America segment specializes in non-residential buildings, including materials manufacturing and support services.

Sector: Basic Materials
Industry: Steel
Stock Style Box: Mid Value
Total Number of Employees: 6,700
Website: https://www.bluescope.com

Competitors

Valuation

Metric	BSL	BLD	BKW
Price/Earnings (Normalized)	10.89	30.66	35.52
Price/Book Value	0.98	2.90	1.17
Price/Sales	0.61	1.72	3.37
Price/Cash Flow	5.98	10.30	36.70

Price/Earnings

BSL

BLD

BKW

Financial Strength

Metric	BSL	BLD	BKW
Quick Ratio	0.96	2.03	0.89
Current Ratio	2.12	2.49	2.31
Interest Coverage	20.08	5.97	−0.39

Quick Ratio

BSL

BLD

BKW

Profitability

Metric	BSL	BLD	BKW
Return on Assets (Normalized)	6.10%	5.74%	1.01%
Return on Equity (Normalized)	9.23%	10.99%	1.74%
Return on Invested Capital (Normalized)	8.12%	8.04%	2.30%

Return on Assets

BSL

BLD

BKW

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