ASX:BSL

Stock Analysis Report

Executive Summary

BlueScope Steel Limited produces and sells metal coated and painted steel building products in Australia, China, India, Indonesia, Thailand, Vietnam, Malaysia, and North America.

Snowflake

Fundamentals

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has BlueScope Steel's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

BSL

-1.9%

AU Metals and Mining

1.7%

AU Market


1 Year Return

-21.7%

BSL

8.4%

AU Metals and Mining

10.3%

AU Market

Return vs Industry: BSL underperformed the Australian Metals and Mining industry which returned 8.4% over the past year.

Return vs Market: BSL underperformed the Australian Market which returned 10.3% over the past year.


Shareholder returns

BSLIndustryMarket
7 Day3.8%-1.9%1.7%
30 Day0.3%-7.0%-0.4%
90 Day-2.5%-12.0%-0.1%
1 Year-20.9%-21.7%16.0%8.4%16.7%10.3%
3 Year62.7%58.4%57.0%38.0%36.7%18.4%
5 Year155.6%143.3%54.4%19.1%50.9%16.9%

Price Volatility Vs. Market

How volatile is BlueScope Steel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BlueScope Steel undervalued compared to its fair value and its price relative to the market?

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BSL (A$12.31) is trading below our estimate of fair value (A$15.76)

Significantly Undervalued: BSL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BSL is good value based on its PE Ratio (6.5x) compared to the Metals and Mining industry average (12.7x).

PE vs Market: BSL is good value based on its PE Ratio (6.5x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: BSL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BSL is good value based on its PB Ratio (0.9x) compared to the AU Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is BlueScope Steel forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSL's earnings are forecast to decline over the next 3 years (-10.6% per year).

Earnings vs Market: BSL's earnings are forecast to decline over the next 3 years (-10.6% per year).

High Growth Earnings: BSL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BSL's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: BSL's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BSL's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has BlueScope Steel performed over the past 5 years?

52.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BSL has become profitable over the past 5 years, growing earnings by 52.9% per year.

Accelerating Growth: BSL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BSL had negative earnings growth (-36%) over the past year, making it difficult to compare to the Metals and Mining industry average (1.3%).


Return on Equity

High ROE: BSL's Return on Equity (13.8%) is considered low.


Return on Assets

ROA vs Industry: BSL's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: BSL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is BlueScope Steel's financial position?


Financial Position Analysis

Short Term Liabilities: BSL's short term assets (A$5.1B) exceeds its short term liabilities (A$2.9B)

Long Term Liabilities: BSL's short term assets (5.1B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: BSL's debt to equity ratio (11.3%) is considered satisfactory

Reducing Debt: BSL's debt to equity ratio has reduced from 11.9% to 11.3% over the past 5 years.

Debt Coverage: BSL's debt is well covered by operating cash flow (202.2%).

Interest Coverage: BSL's interest payments on its debt are well covered by EBIT (28.2x coverage).


Balance Sheet

Inventory Level: BSL has a high level of physical assets or inventory.

Debt Coverage by Assets: BSL's debt is covered by short term assets (assets are 6.105550x debt).


Next Steps

Dividend

What is BlueScope Steel's current dividend yield, its reliability and sustainability?

1.14%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.5%markettop25%5.6%industryaverage5.0%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BSL's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: BSL's dividend (1.14%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: BSL is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: BSL is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BSL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BSL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of BlueScope Steel's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Mark Vassella (56yo)

1.8yrs

Tenure

AU$3,733,577

Compensation

Mr. Mark Royce Vassella, BCom, MBA has been Managing Director, Chief Executive Officer and Executive Director of BlueScope Steel Limited since January 01, 2018. Mr. Vassella joined BlueScope following its  ...


CEO Compensation Analysis

Compensation vs. Market: Mark has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: BSL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BSL's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: BSL insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyAU$50,61002 Oct 19
Jennifer Lambert
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares4,200
Max PriceAU$12.05
SellAU$5,677,46123 Sep 19
Mark Vassella
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares463,446
Max PriceAU$12.25
SellAU$619,89717 Mar 19
Norges Bank Investment Management
EntityCompany
Shares45,674
Max PriceAU$13.57
SellAU$14,794,19514 Mar 19
Norges Bank Investment Management
EntityCompany
Shares1,041,588
Max PriceAU$14.20
BuyAU$36,627,32814 Mar 19
Norges Bank Investment Management
EntityCompany
Shares2,822,082
Max PriceAU$12.98
SellAU$26,583,34005 Feb 19
New York Life Investment Management LLC
EntityCompany
Shares2,258,679
Max PriceAU$11.77
BuyAU$16,925,72405 Feb 19
New York Life Investment Management LLC
EntityCompany
Shares1,439,240
Max PriceAU$11.76
BuyAU$6,807,30617 Dec 18
New York Life Investment Management LLC
EntityCompany
Shares563,619
Max PriceAU$12.15
SellAU$4,717,95812 Dec 18
New York Life Investment Management LLC
EntityCompany
Shares409,609
Max PriceAU$11.52
BuyAU$72,800,12806 Dec 18
New York Life Investment Management LLC
EntityCompany
Shares6,763,714
Max PriceAU$10.76
SellAU$9,901,66106 Dec 18
New York Life Investment Management LLC
EntityCompany
Shares6,601,229
Max PriceAU$1.50

Ownership Breakdown


Management Team

  • Pat Finan

    Chief Executive of Hot Rolled Products North America

    • Tenure: 0yrs
    • Compensation: AU$1.77m
  • Mark Vassella (56yo)

    MD, CEO & Director

    • Tenure: 1.8yrs
    • Compensation: AU$3.73m
  • Charlie Elias

    Chief Executive of NS BlueScope

    • Tenure: 1.6yrs
    • Compensation: AU$1.93m
  • Don Watters

    Treasurer & Head of Investor Relations

    • Tenure: 7.1yrs
  • Gerry Tidd

    Executive Vice President of Corporate Affairs

    • Tenure: 13.8yrs
  • Gretta Stephens

    Chief Executive of New Zealand & Pacific Islands

    • Tenure: 1.3yrs
    • Compensation: AU$1.01m
  • Tania Archibald

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: AU$1.79m
  • Debra Counsell

    Chief Legal Officer & Company Secretary

    • Tenure: 2.8yrs
  • John Nowlan

    Chief Executive of Australian Steel Products

    • Tenure: 1.8yrs
    • Compensation: AU$1.59m
  • Kristie Keast

    Chief People Officer

    • Tenure: 0.5yrs

Board Members

  • Richard Hutchinson (53yo)

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$175.93k
  • John Bevan (62yo)

    Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: AU$506.53k
  • Penny Bingham-Hall (59yo)

    Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: AU$261.03k
  • Mark Vassella (56yo)

    MD, CEO & Director

    • Tenure: 1.8yrs
    • Compensation: AU$3.73m
  • Jennifer Lambert (52yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$261.03k
  • Lloyd Jones (66yo)

    Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: AU$240.03k
  • Rebecca Dee-Bradbury (51yo)

    Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$241.03k
  • Ewen Graham Crouch (63yo)

    Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: AU$261.03k

Company Information

BlueScope Steel Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BlueScope Steel Limited
  • Ticker: BSL
  • Exchange: ASX
  • Founded: 1885
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$6.107b
  • Shares outstanding: 502.21m
  • Website: https://www.bluescope.com

Number of Employees


Location

  • BlueScope Steel Limited
  • 120 Collins Street
  • Level 11
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BLSF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2002
BSLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2002
BH5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2002
BSLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2002
BLSF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008

Biography

BlueScope Steel Limited produces and sells metal coated and painted steel building products in Australia, China, India, Indonesia, Thailand, Vietnam, Malaysia, and North America. It operates through five s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 10:32
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.