No-moat BlueScope has sold off in recent months, alongside a broader pullback in steel prices. Shares have fallen 17% since March 2024, while US Midwest hot-rolled coil prices are down around 10%. Nonetheless, BlueScope still looks expensive against our unchanged AUD 16.50 per share fair value estimate.
Reductions in Chinese overcapacity may act to maintain steelmaking spreads at attractive levels and above historical averages.
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.
|
Metric
|
BSL
|
HOLN
|
JHX
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.21 | 13.67 | 21.56 |
Price/Book Value | 0.92 | 1.79 | 7.98 |
Price/Sales | 0.57 | 1.76 | 3.85 |
Price/Cash Flow | 5.61 | 8.83 | 17.42 |
|
Metric
|
BSL
|
HOLN
|
JHX
|
|---|---|---|---|
Quick Ratio | 0.96 | 0.79 | 0.92 |
Current Ratio | 2.12 | 1.23 | 1.79 |
Interest Coverage | 20.08 | 7.77 | 21.16 |
|
Metric
|
BSL
|
HOLN
|
JHX
|
|---|---|---|---|
Return on Assets (Normalized) | 6.10% | 6.08% | 15.30% |
Return on Equity (Normalized) | 9.23% | 12.36% | 39.87% |
Return on Invested Capital (Normalized) | 8.12% | 10.96% | 24.70% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Nucor Corp
NUE
| Vmtlnnkpc | Xfhr | $38.6 Bil | |||
| Steel Dynamics Inc
STLD
| Xkxsjcvpm | Bspqf | $20.5 Bil | |||
| POSCO Holdings Inc ADR
PKX
| Lrpjttpvy | Lcg | $19.6 Bil | |||
| Nippon Steel Corp
NISTF
| — | Ggw | $19.2 Bil | |||
| Nippon Steel Corp ADR
NPSCY
| — | Nrc | $19.2 Bil | |||
| ArcelorMittal SA New Reg.Shs ex-Arcelor
AMSYF
| Mqqqtprkp | Rkkcq | $17.8 Bil | |||
| ArcelorMittal SA Depository Receipt
MT
| Xmmm | Btrb | $17.8 Bil | |||
| Reliance Inc
RS
| Rqwxyfnk | Xwkzd | $16.9 Bil | |||
| China Steel Corp DR
CISXF
| — | Rfvcs | $10.7 Bil | |||
| United States Steel Corp
X
| Xjvfhlyy | Hfq | $9.2 Bil |
