BlueScope Steel Limited (BSL)

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General Information
Company Name: BlueScope Steel Limited
Stock Code: BSL
GICS Sub-Industry: Steel
Market Cap ($M): 2,238
Equiv. Shares (M): 565

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 3.960 $ 4.010 $ 4.050 $ 3.940 $ 4.040 1,909,974 $ -0.080  -1.980 %

Current Broker Consensus Recommendation more
Recommendation: Buy (2)
Recommendation Date: 16th Apr 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 14.5 10.0 2.5 100.0
2015  F 146.3 25.4 281.5 15.6 8.0 2.0 100.0
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) $514 M -0.6786 -- -- 0.7319 -- 6.7308 44.69 0.00 0.00
BlueScope Steel (BSL) $2,284 M -- 1.0466 0.4448 36.9287 18.0438 12.4884 0.00 1.98 3.98
Fortescue Metals (FMG) $6,087 M 0.7497 -0.8431 -0.8455 2.0963 13.3630 86.5044 10.86 3.22 2.78
Independence Group (IGO) $1,324 M 0.9316 1.2270 0.0504 28.5642 12.8263 12.2109 1.42 2.57 3.28
Mount Gibson Iron (MGX) $202 M 0.0351 -- -- 2.0951 -- -- 21.62 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
BSL 1.06 20.0 0.54 0.25 0.28
Market 0.91 16.4 1.30 2.38 1.62
Sector 0.61 13.3 0.69 1.30 2.28

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

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
28,290,135 (5.06%) Ausbil Dexia Limited
65,945,214 (11.80%) Commonwealth Bank of Australia

Calendar of Events
Date Event
22 February 2016 Report (Interim)
21 September 2015 Report (Annual)
24 August 2015 Report (Prelim)
© 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


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