Vulcan Steel Limited

VSL.NZ

Steel · Basic Materials

Price

NZ$6.32

-0.06 (-0.94%)

Market Cap

NZ$926.1M

Exchange

New Zealand Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Strong

Stability

Weak

Valuation

Good

Dividends

Weak

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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)

Winston Score History

The full picture

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.

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

+11.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-14.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

NZ$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

NZ$36M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Growth + cash flow

Vulcan Steel Limited is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

28.5%

Modest — 28.5% gross margin

Profit after running costs

Operating Margin

5.4%

Thin — 5.4% operating margin

Return on the money invested

ROCE

6.4%

Weak — 6.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+0.6%

Nearly flat sales (+0.6% YoY)

Profit growth

EPS YoY

-39.4%

Earnings shrinking (-39.4% YoY)

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

How steady the profit is

EPS Consistency

1/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

428%

Turns 428% of profit into real cash

Spare cash per sale

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

What it owes vs what it owns

Debt / Equity

2.11

Heavy debt load (2.11)

Covers its interest

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

Price vs profit

P/E Ratio (TTM)

57.9x

Expensive — P/E 57.9

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

Cheaper or dearer next year

P/E vs Forward

+38.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (57.9 → 19.9)

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Dividends

Dividend

Dividend Yield

1.08%

Small dividend — 1.08% yield

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

Dividend record

Dividend Growth

-81.2%

Dividend cut (-81.2% YoY) — warning sign

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