ArcelorMittal South Africa Limited

OTCPK:ARCX.F Stock Report

Market Cap: US$75.9m

ArcelorMittal South Africa Valuation

Is ARCX.F undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ARCX.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARCX.F ($0.07) is trading below our estimate of fair value ($0.77)

Significantly Below Fair Value: ARCX.F is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARCX.F?

Key metric: As ARCX.F is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ARCX.F. This is calculated by dividing ARCX.F's market cap by their current revenue.
What is ARCX.F's PS Ratio?
PS Ratio0.03x
SalesR41.10b
Market CapR1.38b

Price to Sales Ratio vs Peers

How does ARCX.F's PS Ratio compare to its peers?

The above table shows the PS ratio for ARCX.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
FRD Friedman Industries
0.2xn/aUS$105.2m
WEBC Webco Industries
0.3xn/aUS$154.1m
SRL Scully Royalty
2.8xn/aUS$107.3m
AP Ampco-Pittsburgh
0.1xn/aUS$36.8m
ARCX.F ArcelorMittal South Africa
0.03x10.4%US$1.4b

Price-To-Sales vs Peers: ARCX.F is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does ARCX.F's PS Ratio compare vs other companies in the US Metals and Mining Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.2x5.4%
ARCX.F ArcelorMittal South Africa
 0.03x10.4%US$75.95m
TX Ternium
0.3x2.8%US$6.39b
CLF Cleveland-Cliffs
0.3x4.3%US$5.95b
ARCX.F 0.0xIndustry Avg. 1.2xNo. of Companies26PS0246810+
27 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.2x21.0%
ARCX.F ArcelorMittal South Africa
 0.03x110.6%US$75.95m
No more companies

Price-To-Sales vs Industry: ARCX.F is good value based on its Price-To-Sales Ratio (0x) compared to the US Metals and Mining industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is ARCX.F's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARCX.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.03x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate ARCX.F's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Ecora Resources

UK£163.0m

Operates as a natural resource royalty and streaming company in Australia, North and South America, Europe, and internationally.

ECRA.F

UK£0.81

7D

-4.6%

1Y

-30.1%

CMOC Group

HK$159.6b

Engages in the mining, beneficiation, smelting, and refining of base and rare metals.

CMCL.F

HK$0.70

7D

-9.4%

1Y

19.6%

Chemtrade Logistics Income Fund

CA$1.4b

Offers industrial chemicals and services in Canada, the United States, and South America.

CGIF.F

CA$8.16

7D

-0.5%

1Y

25.0%