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 fair 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

-8.8%

ASX:BSL

3.1%

AU Metals and Mining

1.2%

AU Market


1 Year Return

-27.0%

ASX:BSL

20.5%

AU Metals and Mining

6.9%

AU Market

BSL underperformed the Metals and Mining industry which returned 20.5% over the past year.

BSL underperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

BSLIndustryMarket
7 Day-8.8%3.1%1.2%
30 Day9.8%3.0%4.9%
90 Day1.7%-2.5%1.2%
1 Year-26.2%-27.0%28.9%20.5%13.1%6.9%
3 Year70.8%66.3%83.5%59.7%41.8%22.7%
5 Year133.1%121.9%58.7%22.6%48.2%15.7%

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 based on future cash flows and its price relative to the stock market?

6.43x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

BlueScope Steel's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

BlueScope Steel's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

BlueScope Steel is good value based on earnings compared to the AU Metals and Mining industry average.

BlueScope Steel is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

BlueScope Steel earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

BlueScope Steel is good value based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

How is BlueScope Steel expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

-17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BlueScope Steel's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

BlueScope Steel's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

BlueScope Steel's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

BlueScope Steel's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

BlueScope Steel's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

BlueScope Steel is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

BlueScope Steel has delivered over 20% year on year earnings growth in the past 5 years.

BlueScope Steel's 1-year earnings growth is negative, it can't be compared to the 5-year average.

BlueScope Steel's 1-year earnings growth is negative, it can't be compared to the AU Metals and Mining industry average.


Return on Equity

BlueScope Steel has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

BlueScope Steel used its assets more efficiently than the AU Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

BlueScope Steel has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is BlueScope Steel's financial position?


Financial Position Analysis

BlueScope Steel is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

BlueScope Steel's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

BlueScope Steel's level of debt (11.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (11.9% vs 11.3% today).

Debt is well covered by operating cash flow (202.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 28.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.18%

Expected Dividend Yield


Dividend Yield and Payments Analysis

BlueScope Steel's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

BlueScope Steel's dividend is below the markets top 25% of dividend payers in Australia (5.55%).

BlueScope Steel is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.

BlueScope Steel is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of BlueScope Steel's dividends as it is not paying a notable one for Australia.


Future Payout to Shareholders

No need to calculate the sustainability of BlueScope Steel's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Mark Vassella (55yo)

1.7yrs

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

Mark's remuneration is about average for companies of similar size in Australia.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

The average tenure for the BlueScope Steel management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

57yo

Average Age

The tenure for the BlueScope Steel board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$619,89717 Mar 19
Norges Bank Investment Management
EntityCompany
Shares45,674
Max PriceAU$13.57
BuyAU$36,627,32814 Mar 19
Norges Bank Investment Management
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Max PriceAU$12.98
SellAU$14,794,19514 Mar 19
Norges Bank Investment Management
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Shares1,041,588
Max PriceAU$14.20
BuyAU$16,925,72405 Feb 19
New York Life Investment Management LLC
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Shares1,439,240
Max PriceAU$11.76
SellAU$26,583,34005 Feb 19
New York Life Investment Management LLC
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Shares2,258,679
Max PriceAU$11.77
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
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Shares409,609
Max PriceAU$11.52
SellAU$9,901,66106 Dec 18
New York Life Investment Management LLC
EntityCompany
Shares6,601,229
Max PriceAU$1.50
BuyAU$72,800,12806 Dec 18
New York Life Investment Management LLC
EntityCompany
Shares6,763,714
Max PriceAU$10.76

Ownership Breakdown


Management Team

  • Pat Finan

    Chief Executive of Hot Rolled Products North America

    • Tenure: 0yrs
    • Compensation: AU$1.77m
  • Mark Vassella (55yo)

    MD, CEO & Director

    • Tenure: 1.7yrs
    • Compensation: AU$3.73m
  • Charlie Elias

    Chief Executive of NS BlueScope

    • Tenure: 1.5yrs
    • Compensation: AU$1.93m
  • Don Watters

    Treasurer & Head of Investor Relations

    • Tenure: 7yrs
  • Gerry Tidd

    Executive Vice President of Corporate Affairs

    • Tenure: 13.7yrs
  • Gretta Stephens

    Chief Executive of New Zealand & Pacific Islands

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

    Chief Financial Officer

    • Tenure: 1.5yrs
    • Compensation: AU$1.79m
  • Debra Counsell

    Chief Legal Officer & Company Secretary

    • Tenure: 2.7yrs
  • John Nowlan

    Chief Executive of Australian Steel Products

    • Tenure: 1.7yrs
    • Compensation: AU$1.59m
  • Kristie Keast

    Chief People Officer

    • Tenure: 0.4yrs

Board Members

  • Mark Hutchinson (53yo)

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: AU$175.93k
  • John Bevan (62yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: AU$506.53k
  • Penny Bingham-Hall (59yo)

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$261.03k
  • Mark Vassella (55yo)

    MD, CEO & Director

    • Tenure: 1.7yrs
    • Compensation: AU$3.73m
  • Jennifer Lambert (52yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: AU$261.03k
  • Lloyd Jones (66yo)

    Non-Executive Director

    • Tenure: 6yrs
    • Compensation: AU$240.03k
  • Rebecca Dee-Bradbury (51yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$241.03k
  • Ewen Graham Crouch (63yo)

    Non-Executive Director

    • Tenure: 6.5yrs
    • 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$6.292b
  • Shares outstanding: 505.81m
  • 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 Analysis2019/09/18 10:33
End of Day Share Price2019/09/18 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.