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): 3,621
Equiv. Shares (M): 559

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 6.530 $ 6.500 $ 6.550 $ 6.450 $ 6.480 2,250,843 $ 0.050  0.772 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 13th Mar 2014
12 Month Target Price (average): $6.693
Brokers Surveyed: 6

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 (%)
2015  F 92.4 16.2 159.6 40.0 5.0 0.8 0.0
2014  F 35.6 6.2 73.8 103.8 0.0 0.0 0.0
2013  A 20.4 3.6 -- 96.5 0.0 0.0 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
Arrium (ARI) $1,811 M 1.6728 -0.6547 -0.1343 1.5536 4.4993 5.1973 0.0376 0.0902 0.0752
BlueScope Steel (BSL) $3,593 M -- -- 0.4928 -- 31.8474 21.3338 0.0000 0.0000 0.0210
Fortescue Metals (FMG) $16,597 M 0.2056 0.8625 -0.0856 10.0000 5.3692 5.8720 0.0202 0.0427 0.0543
Independence Group (IGO) $978 M -0.7429 1.4492 0.4892 40.9180 16.7065 11.2182 0.0048 0.0155 0.0302
Mount Gibson Iron (MGX) $905 M -0.4641 0.8206 -0.3432 9.7304 5.3445 8.1373 0.0482 0.0469 0.0469

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
BSL 2.70 55.2 0.89 0.69 0.50
Market 1.07 15.9 1.26 1.99 1.71
Sector 0.88 12.2 0.67 0.72 4.97

Directors
Name Position Start Date
Mr Paul O'Malley Managing Director, Chief Executive Officer 06 August 2007
Mr Graham John Kraehe Non-Executive Chairman 10 May 2002
Mr Ronald John McNeilly Non-Executive Deputy Chairman 10 May 2002
Mr Kenneth Alfred Dean Non-Executive Director 21 April 2009
Mr Lloyd Jones Non-Executive Director 02 September 2013
Mr Daniel Grollo Non-Executive Director 27 September 2006
Mr John Bevan Non-Executive Director 12 March 2014
Ms Penny Bingham-Hall Non-Executive Director 29 March 2011
Mr Ewen Crouch Non-Executive Director 12 March 2013

Management
Name Position
Mark Vassella Chief Executive, BlueScope Australia and New Zealand
Sanjay Dayal Chief Executive, Building Products
Bob Moore Chief Executive, Global Building Solutions
Charlie Elias Chief Financial Officer
Michael Barron Chief Legal Officer, Company Secretary
Keith Mitchelhill Executive General Manager
Pat Finan Executive General Manager, Global Building & Construction Markets
Ian Cummin Executive General Manager, People and Organisation Performance

Substantial Shareholders
Holding Name
42,582,637 (7.62%) Commonwealth Bank of Australia
27,976,544 (5.01%) Dimensional Entities

Calendar of Events
Date Event
23 February 2015 Report (Interim)
15 September 2014 Report (Annual)
18 August 2014 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 www.morningstar.com.au/fsg.asp.

Advertisement

Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Choosing A Financial Planner

An educational booklet about the specialised professionals who help people with their money-related requirements - especially superannuation.

More details...

News

Billionaires bankroll Ten's new direction Media Network sees digital future

The Age 19/12/2013 | Ten Network's programming ambitions will be funded by a $200 million loan guaranteed by three of its billionaire owners, as the free-to-air broadcaster declared digital was the future and pointed to early signs that its switch to an older market demographic was working.

Elders alleges $24m fraud in live cattle division

The Age 19/12/2013 | Troubled rural services group Elders is threatening to call in the police over an alleged $24 million fraud by a "handful of individuals" in its live cattle exports division.

Bega Cheese holds back in three-way bidding war for WCB

The Age 19/12/2013 | Bega Cheese began the battle for Warrnambool Cheese & Butter but three months on it appears to be the first casualty of the bidding war.

Aussie hampers transition

The Age 19/12/2013 | A persistently high Australian dollar is thwarting the Reserve Bank's efforts to ease the transition of the economy away from mining.

RBA keeps its focus on lower dollar

The Age 19/12/2013 | The Reserve Bank is keeping the door open to further interest rate cuts, but believes the "significant amount" of monetary policy easing over the past two years is already stimulating growth.

Pact's struggles weigh down Orora

The Age 19/12/2013 | The underwhelming sharemarket debut of packaging company Pact Group Holdings has weighed on the demerger of Amcor and its $2 billion Australasian packaging and distribution business Orora.

More...


Sponsored Links

Feedback Form