BlueScope Steel Limited's (ASX:BSL) Intrinsic Value Is Potentially 60% Above Its Share Price
Oct 28
Australian (ASX) Steel Industry Analysis
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies47
- 7D6.4%
- 3M0.09%
- 1Y36.1%
- YTD6.4%
In the last week, the Steel industry is up 4.0%, with Fortescue Metals Group up 7.1%. In the same time, Tigers Realm Coal was down 17%. This takes the industry's 12 month performance to a gain of 36%. In the next few years, earnings are forecast to decline by 13% annually.
Industry Valuation and Performance
Has the Australian Steel Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | AU$97.0b | AU$67.5b | AU$11.0b | 9x | 8.8x | 1.4x |
| Thu, 28 Sep 2023 | AU$91.2b | AU$67.5b | AU$11.0b | 8.8x | 8.3x | 1.4x |
| Sat, 26 Aug 2023 | AU$92.1b | AU$67.5b | AU$12.6b | 9.2x | 7.3x | 1.4x |
| Mon, 24 Jul 2023 | AU$96.4b | AU$67.0b | AU$13.2b | 6.4x | 7.3x | 1.4x |
| Wed, 21 Jun 2023 | AU$96.4b | AU$66.7b | AU$13.1b | 6.4x | 7.4x | 1.4x |
| Fri, 19 May 2023 | AU$90.0b | AU$67.3b | AU$13.4b | 6.3x | 6.7x | 1.3x |
| Sun, 16 Apr 2023 | AU$97.9b | AU$67.2b | AU$13.5b | 6.6x | 7.2x | 1.5x |
| Tue, 14 Mar 2023 | AU$93.5b | AU$63.5b | AU$12.8b | 6.6x | 7.3x | 1.5x |
| Thu, 09 Feb 2023 | AU$95.5b | AU$62.7b | AU$14.2b | 6.5x | 6.7x | 1.5x |
| Sat, 07 Jan 2023 | AU$93.6b | AU$63.1b | AU$14.4b | 7x | 6.5x | 1.5x |
| Mon, 05 Dec 2022 | AU$86.0b | AU$63.5b | AU$14.5b | 6.2x | 5.9x | 1.4x |
| Wed, 02 Nov 2022 | AU$70.3b | AU$64.9b | AU$15.1b | 5.8x | 4.7x | 1.1x |
| Fri, 30 Sep 2022 | AU$74.4b | AU$64.1b | AU$15.1b | 5.9x | 4.9x | 1.2x |
| Sun, 28 Aug 2022 | AU$87.1b | AU$67.5b | AU$18.5b | 4.9x | 4.7x | 1.3x |
| Tue, 26 Jul 2022 | AU$79.7b | AU$62.6b | AU$17.8b | 4.7x | 4.5x | 1.3x |
| Thu, 23 Jun 2022 | AU$78.1b | AU$62.4b | AU$17.7b | 4.9x | 4.4x | 1.3x |
| Sat, 21 May 2022 | AU$91.5b | AU$62.1b | AU$17.6b | 5.8x | 5.2x | 1.5x |
| Mon, 18 Apr 2022 | AU$98.3b | AU$59.8b | AU$16.5b | 6.6x | 5.9x | 1.6x |
| Wed, 16 Mar 2022 | AU$79.2b | AU$59.7b | AU$16.6b | 4.8x | 4.8x | 1.3x |
| Fri, 11 Feb 2022 | AU$94.0b | AU$55.6b | AU$16.8b | 8x | 5.6x | 1.7x |
| Sun, 09 Jan 2022 | AU$88.2b | AU$55.8b | AU$16.9b | 8.3x | 5.2x | 1.6x |
| Tue, 07 Dec 2021 | AU$75.6b | AU$56.5b | AU$17.2b | 6.8x | 4.4x | 1.3x |
| Thu, 04 Nov 2021 | AU$67.3b | AU$54.3b | AU$16.2b | 7.5x | 4.2x | 1.2x |
| Sat, 02 Oct 2021 | AU$67.4b | AU$55.2b | AU$16.6b | 8.3x | 4.1x | 1.2x |
| Mon, 30 Aug 2021 | AU$92.3b | AU$54.5b | AU$16.1b | 11.7x | 5.7x | 1.7x |
| Tue, 06 Jul 2021 | AU$97.6b | AU$54.5b | AU$16.1b | 11.9x | 6.1x | 1.8x |
| Fri, 09 Apr 2021 | AU$83.9b | AU$47.5b | AU$12.2b | 12.8x | 6.9x | 1.8x |
| Thu, 31 Dec 2020 | AU$93.6b | AU$41.3b | AU$8.7b | 10.7x | 10.8x | 2.3x |
Price to Earnings Ratio
8.8x
Current Industry PE
- Investors are optimistic on the Australian Steel industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 8.8x which is higher than its 3-year average PE of 6.5x.
- The industry is trading close to its 3-year average PS ratio of 1.5x.
Past Earnings Growth
- The earnings for companies in the Steel industry have grown 12% per year over the last three years.
- Revenues for these companies have grown 18% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Comparison
How does Australian Steel compare with similar industries?
| AU Market | -0.99% | |
| Materials | 2.87% | |
| Metals and Mining | 3.36% | |
| Steel | 6.38% | |
| Diversified Metals and Mining | 3.61% | |
| Aluminum | 1.78% | |
| Copper | 0.91% | |
| Silver | 0% | |
| Precious Metals and Minerals | -0.91% | |
| Gold | -0.94% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| FMG Fortescue Metals Group | AU$22.28 | 7.1% +AU$4.5b | 51.6% | PE9.1x | |
| CIA Champion Iron | AU$7.00 | 12.2% +AU$393.1m | 49.6% | PE14.4x | |
| BSL BlueScope Steel | AU$18.70 | 3.4% +AU$285.3m | 18.9% | PE9x | |
| CRN Coronado Global Resources | AU$1.76 | 9.3% +AU$251.5m | -5.4% | PE4.6x | |
| SMR Stanmore Resources | AU$3.87 | 6.6% +AU$216.3m | 34.4% | PE2.8x |