The Vulcan Steel Ltd (ASX: VSL) share price is 1% in the red despite the company boasting a "record performance" in FY22, according to its full-year results announcement today.

Vulcan is an Australasian steel and metal products distributor and processor. It was dual-listed on the ASX and New Zealand's Exchange (NZX) in November last year.

The Vulcan Steel share price opened Wednesday's session at $8.40 — a 1.95% increase from yesterday's closing price of $8.24. Over the day, the shares have deteriorated to as low as $8.01.

At the time of writing, the shares have regained some ground and are swapping hands for $8.17. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.56% for the day so far.

Vulcan Steel share price down despite record result

The highlights of the report are as follows:

• Net profit after tax (NPAT) of NZ$124 million, up 91% on the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of NZ$224 million, up 68% pcp
• Adjusted NPAT NZ$142 million, up 119% pcp
• Adjusted EBITDA NZ$243 million, up 82% pcp
• Final dividend of 37.5 NZ cents per share (ASX shareholders will receive 42.8 NZ cents per share, equating to 38 AU cents per share on today's currency conversion)
• Total dividends for FY22 of 65 NZ cents per share, down 20% pcp.

What else happened in FY22?

Vulcan Steel started trading on the ASX on 4 November 2021 after a successful initial public offering (IPO) to raise AU$371.6 million at a share price of AU$7.10.

By year's end, the Vulcan Steel share price was up 27.5%.

Vulcan Steel became part of the All Ords index during the March 2022 quarter rebalance. The All Ords represents the top 500 companies on the ASX by market capitalisation.

Also, in March, the company won New Zealand's 2021 Deloitte Top 200 Award for 'best growth strategy'. This gave the Vulcan Steel share price a 2% boost on the day.

What did management say?

Commenting on the results, Vulcan Steel managing director and CEO Rhys Jones said:

Notwithstanding the disruptions caused by COVID-19 and major floods across parts of Queensland and New South Wales during the year, Vulcan's FY22 adjusted NPAT of approximately NZ$142m exceeded our prospectus forecast by 89%.

The strong FY22 performance has enabled the company to invest in our staff, working capital and processing capacity and support the debtfunding for our acquisition of Ullrich to position the company for long term growth.

What's next?

Vulcan Steel says rising interest rates and ongoing COVID-19 disruptions in some major markets are "likely to temper global economic activity and demand for steel and metal products".

The company said:

For Australia and New Zealand, Vulcan expects a more challenging industry environment in FY23 due to the impact of higher interest rates. New Zealand business confidence remains weak while in Australia economic activity appears more resilient for now. Some normalisation in industry margins will likely occur in FY23.

Vulcan's FY23 EBITDA guidance of NZ$215m-NZ$235m reflects these business cycles and industry headwinds.

… Vulcan's FY23 NPAT is expected to be in the range of NZ$93m-NZ$107m compared with NZ$142m achieved in FY22.

Vulcan Steel share price snapshot

The Vulcan Steel share price is down 14% in the year to date alongside a 9% drop in the All Ords index.

The post Vulcan Steel share price dips despite record year appeared first on The Motley Fool Australia.

Four ASX shares that have managed to avoid the selloff today are listed below. Here's why they are pushed higher:

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price climbed 3% to $18.27. This morning the lottery ticket seller presented at the Goldman Sachs Emerging Leaders Conference. At the conference, management spoke about its ~$70 billion market opportunity across lottery retailing, software as a service, and managed services.

Nufarm Ltd (ASX: NUF)

The Nufarm share price rose 2% to $6.89. Investors were buying this agricultural chemicals company's shares after it provided guidance for the first half. Due to strong demand for its crop protection and seed products, Nufarm expects to report half year underling EBITDA of $320 million to $340 million. This is up from $233.6 million during the prior corresponding period, which itself was up 118% from the prior year.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price surged 23% higher to $1.18. This morning the donation technology company released an announcement revealing that it has received takeover interest from unnamed third parties. Pushpay neglected to go into any further details, so it remains unclear how serious the offers are and how much has been tabled.

Vulcan Steel Ltd (ASX: VSL)

The Vulcan Steel share price charged 4% higher to $9.50. This morning the steel company revealed that its revenue for the nine months ended 31 March was up 34% year on year to NZ$700 million. In light of this strong form, Vulcan Steel has increased its EBITDA guidance to NZ$212 million to NZ$218 million. It was previously guiding to EBITDA of NZ$150 million and NZ$160 million.

The post Why Jumbo, Nufarm, Pushpay, and Vulcan Steel charged higher appeared first on The Motley Fool Australia.

Tuesday is proving to be one of the worst days for the broader market this year, with the All Ordinaries Index (ASX: XAO) plummeting 1.89%, taking many share prices down with it.

But one share has managed to cling to a life raft, gaining 5% despite the market's slump.

The share price of the All Ordinaries' Vulcan Steel Ltd (ASX: VSL) is rising on the back of a trading update and guidance upgrade. Right now, it's 5.03% higher than its previous close, trading at $9.60.

Let's take a closer look at what's buoying the industrial product distributor's stock today.

This All Ordinaries share is taking off on Tuesday

All Ordinaries share, Vulcan Steel is on the up and up on Tuesday following the company's latest update.

The company announced that its revenue for the 9 months ended 31 March is up 34% year on year. It's come in at approximately NZ$700 million (around $644.7 million).

The company's overall sales volumes have also jumped 5% this year.

Its steel segment has been the biggest driver of the increase. It's sporting a 42% increase in revenue.

Meanwhile, the company's metals segment's revenue has recorded a 21% year on year boost.

In response to its higher revenue, as well as a particularly strong period of trade from February through to early April, the All Ordinaries share has upped its financial year 2022 guidance.

Vulcan Steel previously said it expected to bring in between NZ$150 million and NZ$160 million (approximately $138 million to $147 million) of pro forma earnings before interest, tax, depreciation, and amortisation (EBITDA) and prior to IFRS this financial year.

It also predicted it would report between NZ$97 million and NZ$104 million (approximately $89 million to $96 million) of pro forma net profit after tax (NPAT) prior to IFRS.

Now, the company expects it will report pro forma EBITDA of $212 million to $218 million (approximately $195 million to $201 million) pre-IFRS. The boost represents a 23% increase on its previous guidance.

Its NPAT is now expected to come to between NZ$140 million and NZ$144 million (approximately $129 million to $133 million), pre-IFRS. That represents a 24% increase.

What did management say?

Vulcan Steel managing director and CEO, Rhys Jones commented on the news driving the All Ordinaries share upwards today, saying:

Despite disruptions caused by COVID-19 and adverse weather in Australia, Vulcan's operations and financial performance have remained strong in the past three months.

The geopolitical uncertainty in Europe has added more volatility to global supply chains and product prices for many industries including the steel sector.

Vulcan Steel share price snapshot

Today's gain has boosted the All Ordinaries share into the year to date green.

Right now, the Vulcan Steel share price is 1% higher than it was at the start of 2022.

It has also gained nearly 34% since it floated on the ASX in November.

The post In a sea of red, this ASX All Ordinaries share is surging 5%. Here's why appeared first on The Motley Fool Australia.

Calls for tighter Russian sanctions following alleged war crimes in Bucha could give some ASX shares a second boost.

Our market has already been outperforming since Russia invaded Ukraine. The conflict is driving up commodity prices and a new round of global sanctions could give commodities another leg up.

This puts resource-rich ASX shares in the driver's seat even as inflation and economic growth risks weigh on the broader market.

ASX coal shares among the sanction winners

If you are wondering which shares on our bourse are best placed to outperform, Datt Capital's managing director Emanuel Datt has picked five to watch in an article on Livewire.

Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Limited (ASX: NHC) are on Datt's list.

Whitehaven sells thermal coal to Japanese and Korean customers, while New Hope produces thermal coal from its majority-owned Bengalla mine located in NSW.

ASX shares looking cheap in this climate

"Whitehaven trades at just over 1x expected [earnings before interest, tax, depreciation and amortisation] EBITDA at current thermal coal spot prices and is currently buying back 10% of its shares on market," said Datt.

"New Hope trades at just over 1x expected EBITDA at current thermal coal spot prices and is due to pay an interim fully franked dividend of 30c a share (equating to over 12% yield grossed up).

"The company has one of the highest franking credit balances of any company on the ASX and we expect the board to release this embedded value to shareholders in a timely manner."

Another ASX mining share in the commodities box seat

Another ASX share to watch is South32 Ltd (ASX: S32). The diversified miner is a significant producer of base metals, aluminium, and coking coal.

"S32 is highly capital disciplined and has been buying back its shares on-market since 2017 and this continues today," Datt explained.

"These repurchases have been highly value-accretive to shareholders and the company trades at approximately 2x EBITDA at current spot prices."

Two ASX shares shining bright

The BlueScope Steel Limited (ASX: BSL) share price also looks cheap in this environment. The steel producer is buying back around 10% of its shares on-market and trades at circa 2x EBITDA. That's arguably too low given its strong fundamentals and positive outlook for steel prices and demand, added Datt.

The tailwinds behind the BlueScope share price should also benefit the Vulcan Steel Ltd (ASX: VSL) share price.

Recently listed on the ASX, Vulcan is a steel distribution business operating in the ANZ region.

Is this ASX share set to double in price?

"Vulcan is experiencing excellent tailwinds from these inflationary markets with reported EBITDA per tonne of steel sold doubling in HY22 relative to FY2022," said Datt.

"The business has several attractive qualitative factors which make the present value quite compelling and we value the business around 50% higher than present market prices."

The post Could these ASX shares be set to benefit from increasing Russian sanctions? appeared first on The Motley Fool Australia.

Every month, WAM talks about some of the businesses that have performed well and outlines the bullish factors for thinking about the stocks.

Two of the featured ASX shares this month comes from WAM Research Limited (ASX: WAX) and WAM Active Limited (ASX: WAA), which targets opportunities from the smaller end of the ASX, like these two:

Vulcan Steel Ltd (ASX: VSL)

Vulcan Steel is the only pure, value-add steel distributor and processor in Australia and New Zealand, operating as a key link in the steel value chain between steel producers and end-users across a broad range of market segments.

WAM initially participated in the initial public offering (IPO) of the company in November 2021 at $7.10 per share.

The fund manager points out that the ASX share is a founder-led organisation, has long-standing leadership which, in WAM's eyes, are highly capable with significant 'skin' in the game.

In December, WAM noted that Life360 provided a trading update, highlighting a stronger-than-anticipated performance across all business units. This resulted in a upgrade to its forecast net profit after tax (NPAT) at the time of the IPO of 26% to 35%.

The Wilson Asset Management investment team expects growth to be underpinned by cyclical tailwinds, expansion into new products and geographies and business improvement initiatives, while opportunistic mergers and acquisitions also provides a catalyst. Vulcan Steel is well positioned to continue to sector consolidation, according to WAM.

Life360 Inc (ASX: 360)

WAM describes Life360 as a family safety platform that allows parents to track the whereabouts of their children, with over 33 million users globally.

The initial catalyst identified for the investment in Life360 was the appointment of Randi Zuckerberg, sister of Meta (previously Facebook) founder, CEO and Chair Mark Zuckerberg and the belief that the company would upgrade revenue expectations.

The fund manager also noted that in November, the ASX share made its second hardware acquisition for the year, buying a Bluetooth tracking device company, called Tile, for US$205 million.

WAM said that the combination of Life360 and Tile creates an integrated market leader in location solutions, making Life360 the only vertically integrated, cross-platform solution of scale in the market and well-placed to take advantage of the growing location solutions market.

According to the fund manager, Life360 remains "catalyst rich", including potential mergers and acquisitions and a dual listing in the US in the pipeline.

The post This top fund manager just called these leading ASX shares a buy appeared first on The Motley Fool Australia.

At the time of writing, the steel producer's shares are up 8% to $8.75.

Why is the Vulcan Steel share price storming higher?

Investors have been bidding the Vulcan Steel share price higher this morning following the release of a trading update.

Positively, that trading update reveals that the recently listed company is outperforming its prospectus forecasts in FY 2022.

According to the release, Vulcan's overall revenue is up 35% year-on-year for the five months to 30 November. This has been driven by a 42% increase in Steel segment revenue and a 22% lift in Metals segment revenue.

And while management notes that there is volume uncertainty during the December and January holiday period, that isn't stopping it from upgrading its earnings guidance.

What is the upgrade?

Vulcan now expects to deliver pro forma EBITDA in the range of NZ$174 million and NZ$184 million and net profit in the range of NZ$93 million to NZ$100 million.

This compares to its prospectus forecast of NZ$147 million and NZ$74 million, respectively. Which means an upgrade of 18% to 25% for its EBITDA and 26% to 35% for its net profit guidance.

Vulcan's Managing Director and CEO, Rhys Jones, commented: "Trading has been stronger than anticipated and has been broad-based across all our Australasia business units, especially in October and November as Sydney and Melbourne emerged from COVID19 restrictions. As an industrial distributor and value-added processor, we remain confident of our ability to maintain our high service level and product availability to meet the needs of our growing and diverse customer base."

The Vulcan Steel share price is now up 23% from its November IPO listing price of $7.10 per share.

The post Vulcan Steel (ASX:VSL) share price surges 8% higher on guidance upgrade appeared first on The Motley Fool Australia.

At the time of writing, the steel manufacturer's shares are up 1.5% from their listing price to $7.20.

The Vulcan Steel IPO

The Vulcan Steel share price commenced trade at midday after raising $371.6 million at $7.10 per share.

However, unlike other recent IPOs, the funds raised from the offering will not be used to support the company's growth. Rather, these funds will go to existing shareholders that are selling down their holdings.

The release notes that this provides a liquid market for its shares and an opportunity for other investors to invest in Vulcan Steel. It also notes that listing on the share market provides Vulcan Steel with access to capital markets to enable additional financial flexibility to pursue growth opportunities.

Upon listing, Vulcan had a market capitalisation of $930 million. This has increased to just over $943 million following the rise in the Vulcan Steel share price.

In FY 2021, Vulcan Steel reported revenue of $731.5 million and net profit after tax of $61.1 million. This is expected to rise to $809.3 million and $73.7 million, respectively, in FY 2022. This means the company's shares are trading at a touch under 13x estimated FY 2022 earnings.

"A momentous occasion"

Vulcan Steel's CEO, Rhys Jones, said: "This is a momentous occasion and a pivotal step for Vulcan. On behalf of the Company, I would like to welcome all our new shareholders. We received strong support from institutional and individual investors in Australia, New Zealand and further afield. Our employees responded positively to the Priority Offer."

"We are especially proud that many have decided to participate in the opportunity and that 20% of our employees are now shareholders in the company. We are excited about our prospects. Our team's focus is unwavering when it comes to enhancing customer satisfaction, growing our business and earnings, and in the process creating more value for our shareholders," he added.

The post Vulcan Steel (ASX:VSL) share price rises after completing IPO appeared first on The Motley Fool Australia.