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BlueScope Steel Ltd BSL

Morningstar Rating
A$20.02 +0.08 (0.40%)
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Company Report

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

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.

Price vs Fair Value

BSL is trading at a 579% premium.
Price
A$20.02
Fair Value
A$49.10
Uncertainty
High
1-Star Price
A$55.75
5-Star Price
A$4.70
Economic Moat
Lnd
Capital Allocation
Hhkdbcjqt

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

Trading Information

Previous Close Price
A$19.94
Day Range
A$19.8220.08
52-Week Range
A$17.2324.26
Bid/Ask
A$19.96 / A$20.11
Market Cap
A$8.84 Bil
Volume/Avg
3.3 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
9.49
Price/Sales
0.53
Dividend Yield (Trailing)
2.50%
Dividend Yield (Forward)
2.50%
Total Yield
6.55%

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

Competitors

Valuation

Metric
BSL
JHX
BLD
Price/Earnings (Normalized)
9.4919.2531.81
Price/Book Value
0.857.123.01
Price/Sales
0.533.441.78
Price/Cash Flow
5.2215.5510.69
Price/Earnings
BSL
JHX
BLD

Financial Strength

Metric
BSL
JHX
BLD
Quick Ratio
0.960.922.03
Current Ratio
2.121.792.49
Interest Coverage
20.0821.165.97
Quick Ratio
BSL
JHX
BLD

Profitability

Metric
BSL
JHX
BLD
Return on Assets (Normalized)
6.10%15.30%5.74%
Return on Equity (Normalized)
9.23%39.87%10.99%
Return on Invested Capital (Normalized)
8.12%24.70%8.04%
Return on Assets
BSL
JHX
BLD
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Steel Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Nucor Corp
NUE
NntwcdczdjXgr$37.8 Bil
Steel Dynamics Inc
STLD
FsgbwngrfQyyjgx$20.1 Bil
POSCO Holdings Inc ADR
PKX
CrtcfhxTqnt$20.0 Bil
Nippon Steel Corp
NISTF
Qsrqh$19.5 Bil
Nippon Steel Corp ADR
NPSCY
Rjgz$19.5 Bil
ArcelorMittal SA New Reg.Shs ex-Arcelor
AMSYF
SfkwtpbmqJkktv$18.7 Bil
ArcelorMittal SA Depository Receipt
MT
KtzngSdjt$18.7 Bil
Reliance Inc
RS
SlrbmyccrXzzxml$16.2 Bil
JFE Holdings Inc
JFEEF
Wggbc$9.1 Bil
United States Steel Corp
X
ZfrmpvdswHnd$8.2 Bil

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