Vulcan Steel Limited
Vulcan Steel Limited Fundamental Analysis
Vulcan Steel Limited (VSL.AX) shows weak financial fundamentals with a PE ratio of 62.80, profit margin of 1.50%, and ROE of 6.68%. The company generates $1.0B in annual revenue with weak year-over-year growth of -10.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 7.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VSL.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakVSL.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateVSL.AX shows balanced valuation metrics.
Growth Score
WeakVSL.AX faces weak or negative growth trends.
Financial Health Score
ModerateVSL.AX shows balanced financial health with some risks.
Profitability Score
WeakVSL.AX struggles to sustain strong margins.
Key Financial Metrics
Is VSL.AX Expensive or Cheap?
P/E Ratio
VSL.AX trades at 62.80 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VSL.AX's PEG of -6.22 indicates potential undervaluation.
Price to Book
The market values Vulcan Steel Limited at 3.37 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.77 times EBITDA. This is generally considered low.
How Well Does VSL.AX Make Money?
Net Profit Margin
For every $100 in sales, Vulcan Steel Limited keeps $1.50 as profit after all expenses.
Operating Margin
Core operations generate 5.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.68 in profit for every $100 of shareholder equity.
ROA
Vulcan Steel Limited generates $1.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vulcan Steel Limited generates limited operating cash flow of $66.32M, signaling weaker underlying cash strength.
Free Cash Flow
Vulcan Steel Limited produces free cash flow of $43.62M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.30 in free cash annually.
FCF Yield
VSL.AX converts 4.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
62.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How VSL.AX Stacks Against Its Sector Peers
| Metric | VSL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 62.80 | 24.08 | Worse (Expensive) |
| ROE | 6.68% | 921.00% | Weak |
| Net Margin | 1.50% | -113338.00% (disorted) | Weak |
| Debt/Equity | 3.27 | 0.53 | Weak (High Leverage) |
| Current Ratio | 2.41 | 5.09 | Strong Liquidity |
| ROA | 1.40% | -9816.00% (disorted) | Weak |
VSL.AX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vulcan Steel Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.05%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-52.02%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
45.38%
Industry Style: Cyclical, Commodity, Value
High Growth