Vulcan Steel Limited

VSL.NZ

Steel · Basic Materials

Price

NZ$6.07

-0.17 (-2.72%)

Market Cap

NZ$889.4M

Exchange

New Zealand Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 13, 2026 · filings through Dec 31, 2025

Share count rising — dilution

+1.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 131.4M (2021) → 133.1M (2025)

Vulcan Steel Limited is a metals distributor and processor based in New Zealand and Australia. The company buys steel and stainless steel products in bulk, then cuts and shapes them to order before selling to manufacturers, construction companies, and engineering businesses. It is one of the largest independent steel distributors in Australasia.

Vulcan makes money by buying metal at wholesale prices and selling it at a markup, earning the difference as gross profit. It also charges for processing services like cutting, bending, and profiling. The company operates a network of service centers across New Zealand and Australia, giving it a regional distribution advantage over smaller rivals. However, Vulcan's margins are sensitive to steel prices — when raw material costs rise quickly, the spread between buying and selling prices can shrink. The key growth driver is construction and industrial activity across Australasia, meaning any slowdown in those sectors would directly pressure revenue and profitability.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-10.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-51.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (3%)

Research and development spending

Insider Activity

8.0%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$17M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Vulcan Steel Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

28.5%

Modest — 28.5% gross margin

Operating Margin

5.4%

Thin — 5.4% operating margin

ROCE

3.4%

Weak — 3.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+0.6%

Nearly flat sales (+0.6% YoY)

EPS YoY

-35.8%

Earnings shrinking (-35.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

1/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

428%

Turns 428% of profit into real cash

FCF Margin

4.2%

Thin free cash flow (4.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

2.11

Heavy debt load (2.11)

Interest Cover

1.56x

Dangerous — barely covers interest (1.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

55.6x

Expensive — P/E 55.6

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+35.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (55.6 → 19.9)

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Dividends

Dividend Yield

1.08%

Small dividend — 1.08% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

-81.2%

Dividend cut (-81.2% YoY) — warning sign

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