BlueScope Steel Limited
BlueScope Steel Limited Fundamental Analysis
BlueScope Steel Limited (BLSFF) shows weak financial fundamentals with a PE ratio of 40.91, profit margin of 1.78%, and ROE of 2.75%. The company generates $16.6B in annual revenue with weak year-over-year growth of -4.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BLSFF's fundamental strength across five key dimensions:
Efficiency Score
WeakBLSFF struggles to generate sufficient returns from assets.
Valuation Score
ModerateBLSFF shows balanced valuation metrics.
Growth Score
WeakBLSFF faces weak or negative growth trends.
Financial Health Score
ExcellentBLSFF maintains a strong and stable balance sheet.
Profitability Score
ModerateBLSFF maintains healthy but balanced margins.
Key Financial Metrics
Is BLSFF Expensive or Cheap?
P/E Ratio
BLSFF trades at 40.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BLSFF's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values BlueScope Steel Limited at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.90 times EBITDA. This is generally considered low.
How Well Does BLSFF Make Money?
Net Profit Margin
For every $100 in sales, BlueScope Steel Limited keeps $1.78 as profit after all expenses.
Operating Margin
Core operations generate 4.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.75 in profit for every $100 of shareholder equity.
ROA
BlueScope Steel Limited generates $1.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BlueScope Steel Limited generates limited operating cash flow of $1.64B, signaling weaker underlying cash strength.
Free Cash Flow
BlueScope Steel Limited generates weak or negative free cash flow of $269.00M, restricting financial flexibility.
FCF Per Share
Each share generates $0.61 in free cash annually.
FCF Yield
BLSFF converts 2.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How BLSFF Stacks Against Its Sector Peers
| Metric | BLSFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.91 | 24.91 | Worse (Expensive) |
| ROE | 2.75% | 840.00% | Weak |
| Net Margin | 1.78% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.14 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 2.14 | 4.94 | Strong Liquidity |
| ROA | 1.87% | -4176.00% (disorted) | Weak |
BLSFF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BlueScope Steel Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.47%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
0.37%
Industry Style: Cyclical, Commodity, Value
GrowingFCF CAGR
99.67%
Industry Style: Cyclical, Commodity, Value
High Growth