BlueScope Steel Limited (BSL)



Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today Ľ it's FREE! Already a member? Login now!


General Information
Company Name: BlueScope Steel Limited
Stock Code: BSL
Website: www.bluescopesteel.com
GICS Sub-Industry: Steel
Market Cap ($M): 2,640
Equiv. Shares (M): 565

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 4.670 $ 4.730 $ 4.750 $ 4.640 $ 4.670 3,024,438 0%

Current Broker Consensus Recommendation more
Recommendation: Buy (2.3333)
Recommendation Date: 5th Mar 2015
Brokers Surveyed: 3

Company Overview

Business Description:
BlueScope Steel Limited (BSL) is a flat steel producer and supplier of steel products and solutions focused on the global building and construction markets. It operates in four main geographical regions being Australia, New Zealand, Asia and North America.

Strategy Analysis:
BlueScope’s strategy is to grow shareholder value by growing its global building solutions segment, develop a leading position in painted and coated steel in the Asia-Pacific region, improve profitability in manufacturing and distribution operations in Australia and New Zealand and maintain profitability of its Hot Rolled Products North America assets while exploring potential growth options. BlueScope Steel reported a net loss of $12m for the half-year ended 31 December 2012, compared to a net loss of $530m for 1H FY2012, primarily reflecting the operational benefit of Australian restructure with lower loss-making export despatch tonnes, and lower restructure, redundancy and tax impairment charges in the current half. Revenues from ordinary activities were $3.7bn, down 17% from the same period last year, primarily due to lower sales volume arising from the 2011 restructure to reduce loss making export sales. Diluted EPS was (2.2) cents compared to (160.4) cents last year. The net operating cash inflow was $44m compared to an outflow of $151m in the pcp. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 157.1 27.3 7.4 17.1 10.0 2.1 100.0
2015  F 146.3 25.4 281.5 18.4 8.0 1.7 100.0
2014  A 38.2 6.7 85.8 83.0 0.0 0.0 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Arrium (ARI) $602 M -0.6786 -- -- 0.8574 -- 7.8846 38.15 0.00 0.00
BlueScope Steel (BSL) $2,640 M -- 1.0475 0.4442 42.6874 20.8482 14.4359 0.00 1.25 3.43
Fortescue Metals (FMG) $7,131 M 0.7497 -0.7755 -0.4236 2.4555 10.9360 18.9727 9.27 4.00 2.86
Independence Group (IGO) $1,288 M 0.9316 1.2497 0.0867 27.8059 12.3596 11.3730 1.45 2.67 3.12
Mount Gibson Iron (MGX) $251 M 0.0351 -- -- 2.6048 -- -- 17.39 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
BSL 1.20 24.9 0.64 0.35 0.33
Market 0.90 16.6 1.31 2.39 1.64
Sector 0.60 12.3 0.68 2.11 2.49

Directors
Name Position Start Date
Mr Paul Francis O'Malley Chief Executive Officer,Managing Director 06 August 2007
Mr Graham John Kraehe Non-Executive Chairman 10 May 2002
Mr Kenneth Alfred Dean Non-Executive Director 21 April 2009
Mr Daniel Bruno Grollo Non-Executive Director 18 October 2006
Mr John Andrew Bevan Non-Executive Director 12 March 2014
Ms Penny Bingham-Hall Non-Executive Director 29 March 2011
Mr Ewen Graham Wolseley Crouch Non-Executive Director 12 March 2013
Ms Rebecca Dee-Bradbury Non-Executive Director 22 April 2014
Mr Lloyd Hartley Jones Non-Executive Director 02 September 2013
Mr Ronald John McNeilly Non-Executive Director,Non-Executive Deputy Chairman 10 May 2002

Management
Name Position
M R Vassella Chief Executive, BlueScope Australia and New Zealand
S Dayal Chief Executive, Building Products
R Moore Chief Executive, Global Building Solutions
S R Elias Chief Financial Officer
Michael Barron Chief Legal Officer,Company Secretary
I R Cummin Executive General Manager, People and Organisation Performance
J P Finan President, Global Building Solutions

Substantial Shareholders
Holding Name
28,159,376 (5.04%) Sumitomo Mitsui Trust Holdings Inc
65,945,214 (11.80%) Commonwealth Bank of Australia
28,290,135 (5.06%) Ausbil Dexia Limited

Calendar of Events
Date Event
22 February 2016 Report (Interim)
21 September 2015 Report (Annual)
24 August 2015 Report (Prelim)
01 April 2015 Div Pay Date
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

Advertisement

Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Debt Relief

An educational booklet to help you take control of your debts and look to get back on track.

More details...

News

Markets melt up

By Michael McCarthy (chief market strategist, CMC Markets) 19/12/2014 | Traders and investors caught short heading into the FOMC scrambled for cover in Europe and the US, in many cases driving indices to their best one day performance for 2015.

Aussie Investors take their foot off the accelerator

By Betty Lam (Sales Trader, CMC Markets) 18/12/2014 | Lead by the Fed-fervour offshore, Australians shares jumped on the Yellen cheer wagon. The material and energy stocks were back in vogue as both sectors gained over 3% in morning trade.

Fed Feeds Frenzy

By Michael McCarthy (chief market strategist, CMC Markets) 18/12/2014 | In spite of a frenzied pre-mortem, a benign statement from the US Federal Reserve‚Äôs Open Market Committee and steadying commodity markets drove investors back into share markets overnight. A calmer, stronger ruble helped offset European growth fears, highlighted in the overnight session by further declines in inflation.

Household brands Woolworths and Telstra Heavy Lifting

By Betty Lam (Sales Trader, CMC Markets) 11/12/2014 | Offshore jitters sent ripples through to Australian stocks. The open saw the local equities take 65 points off the index, catalysed by a mass-exit in energy stocks, yet again.

Steady open as Woodside investors wait on details of possible Wheatstone acquisition

By Ric Spooner (Chief Market Analyst, CMC Markets) 10/12/2014 | Yesterday‚Äôs news on Greek politics and China‚Äôs bond market came at a time when US and European stock markets have extended rallies and pushed valuations higher. This makes those markets vulnerable to downward corrections as profit takers act to avoid missing out.

MYEFO and Lima - December could be nasty.

BR Securities Australia Pty Ltd 2/12/2014 | December 2014 could go down as a nasty moment in Australian finance. MYEFO will reveal a deteriorating budget deficit and the UNFCCC meeting in Lima, Peru will provide the agreement, to be ratified in Paris in 2015, on how much (or little) CO2 is to be allowed into the atmosphere from 2020.

More...


Sponsored Links