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 Analysis

Flawless balance sheet and undervalued.


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

Stable Share Price: BSL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

BSL

0.8%

AU Metals and Mining

0.7%

AU Market


1 Year Return

11.0%

BSL

6.2%

AU Metals and Mining

15.5%

AU Market

Return vs Industry: BSL exceeded the Australian Metals and Mining industry which returned 6.2% over the past year.

Return vs Market: BSL underperformed the Australian Market which returned 15.5% over the past year.


Shareholder returns

BSLIndustryMarket
7 Day-3.1%0.8%0.7%
30 Day-11.5%-5.1%0.8%
90 Day-6.2%5.9%6.1%
1 Year12.2%11.0%11.7%6.2%20.6%15.5%
3 Year15.4%12.4%55.5%36.4%38.1%19.7%
5 Year198.8%184.4%85.7%41.9%51.8%17.9%

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?

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSL (A$13.71) is trading below our estimate of fair value (A$19.91)

Significantly Below Fair Value: BSL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BSL is good value based on its PE Ratio (7.2x) compared to the Metals and Mining industry average (11.8x).

PE vs Market: BSL is good value based on its PE Ratio (7.2x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

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 (1x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is BlueScope Steel forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-8.7%

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 (-8.7% per year).

Earnings vs Market: BSL's earnings are forecast to decline over the next 3 years (-8.7% 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 (-0.6% per year).

High Growth Revenue: BSL's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSL's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has BlueScope Steel performed over the past 5 years?

52.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSL has high quality earnings.

Growing Profit Margin: BSL's current net profit margins (8.1%) are lower than last year (13.8%).


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 (16.7%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceed its short term liabilities (A$2.9B).

Long Term Liabilities: BSL's short term assets (A$5.1B) exceed its long term liabilities (A$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 6.1x debt).


Next Steps

Dividend

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

1.02%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%2.3%markettop25%5.4%industryaverage4.4%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: BSL's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: BSL's dividend (1.02%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Mark Vassella (56yo)

2.1yrs

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's total compensation ($USD2.47M) is about average for companies of similar size in the Australian market ($USD2.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Vassella
MD, CEO & Director2.1yrsAU$3.73m0.18% A$12.0m
Tania Archibald
Chief Financial Officer1.9yrsAU$1.79m0.012% A$839.8k
Patrick Finan
Chief Executive of Hot Rolled Products North America0yrsAU$1.77m0.11% A$7.2m
S. Elias
Chief Executive of NS BlueScope1.9yrsAU$1.93m0.12% A$8.4m
John Nowlan
Chief Executive of Australian Steel Products2.1yrsAU$1.59m0.062% A$4.2m
Gretta Stephens
Chief Executive of New Zealand & Pacific Islands1.7yrsAU$1.01m0.0011% A$74.9k
Donald Watters
Treasurer & Head of Investor Relations7.4yrsno datano data
Debra Counsell
Chief Legal Officer & Company Secretary3.1yrsno datano data
Kristie Keast
Chief People Officer0.8yrsno datano data
Gerry Tidd
Executive Vice President of Corporate Affairs14.1yrsno datano data

2.1yrs

Average Tenure

Experienced Management: BSL's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Vassella
MD, CEO & Director2.1yrsAU$3.73m0.18% A$12.0m
Richard Hutchinson
Non-Executive Director1.3yrsAU$175.93k0.0024% A$160.6k
John Bevan
Chairman of the Board4.3yrsAU$506.53k0.011% A$758.8k
Penelope Bingham-Hall
Non-Executive Director8.9yrsAU$261.03k0.012% A$792.8k
Jennifer Lambert
Non-Executive Director2.4yrsAU$261.03k0.0029% A$196.0k
Kathleen Conlon
Independent Non-Executive Director0yrsno data0.00055% A$37.4k
Rebecca Dee-Bradbury
Non-Executive Director5.8yrsAU$241.03k0.0055% A$374.3k
Ewen Graham Crouch
Independent Non-Executive Director6.9yrsAU$261.03k0.0066% A$445.8k

4.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: BSL's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$6.806b
  • Shares outstanding: 496.39m
  • 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 segments: North Star BlueScope Steel, Australian Steel Products, Building Products Asia & North America, Buildings North America, and New Zealand & Pacific Steel. The company 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. It also provides engineered building solutions under the Butler, Varco Pruden, EcoBuild, and PROBUILD brands. BlueScope Steel Limited serves customers in the 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 based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 10:36
End of Day Share Price2020/02/21 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.