JSE:ACL

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ArcelorMittal South Africa

Executive Summary

ArcelorMittal South Africa Ltd, together with its subsidiaries, manufactures and sells long and flat steel products. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has ArcelorMittal South Africa's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACL is more volatile than 90% of ZA stocks over the past 3 months, typically moving +/- 18% a week.

Volatility Over Time: ACL's weekly volatility (18%) has been stable over the past year, but is still higher than 75% of ZA stocks.


Market Performance


7 Day Return

0%

ACL

-1.3%

ZA Metals and Mining

2.0%

ZA Market


1 Year Return

-9.4%

ACL

38.9%

ZA Metals and Mining

1.2%

ZA Market

Return vs Industry: ACL underperformed the ZA Metals and Mining industry which returned 38.9% over the past year.

Return vs Market: ACL underperformed the ZA Market which returned 1.2% over the past year.


Shareholder returns

ACLIndustryMarket
7 Day0%-1.3%2.0%
30 Day61.1%8.0%7.2%
90 Day314.3%6.3%12.9%
1 Year-9.4%-9.4%44.2%38.9%6.5%1.2%
3 Year-60.8%-60.8%242.6%206.5%2.9%-17.9%
5 Year-73.4%-73.4%376.2%301.0%51.0%8.9%

Long-Term Price Volatility Vs. Market

How volatile is ArcelorMittal South Africa's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ArcelorMittal South Africa undervalued compared to its fair value and its price relative to the market?

1.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ACL (ZAR1.45) is trading above our estimate of fair value (ZAR0.51)

Significantly Below Fair Value: ACL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ACL is unprofitable, so we can't compare its PE Ratio to the ZA Metals and Mining industry average.

PE vs Market: ACL is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACL is good value based on its PB Ratio (1x) compared to the ZA Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is ArcelorMittal South Africa forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

51.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.3%).

Earnings vs Market: ACL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ACL's is expected to become profitable in the next 3 years.

Revenue vs Market: ACL's revenue (12.4% per year) is forecast to grow faster than the ZA market (10.7% per year).

High Growth Revenue: ACL's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACL is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has ArcelorMittal South Africa performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACL is currently unprofitable.

Growing Profit Margin: ACL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACL is unprofitable, but has reduced losses over the past 5 years at a rate of 16.3% per year.

Accelerating Growth: Unable to compare ACL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (136.9%).


Return on Equity

High ROE: ACL has a negative Return on Equity (-411.43%), as it is currently unprofitable.


Next Steps

Financial Health

How is ArcelorMittal South Africa's financial position?


Financial Position Analysis

Short Term Liabilities: ACL's short term assets (ZAR12.9B) exceed its short term liabilities (ZAR12.2B).

Long Term Liabilities: ACL's short term assets (ZAR12.9B) exceed its long term liabilities (ZAR8.9B).


Debt to Equity History and Analysis

Debt Level: ACL's debt to equity ratio (474.5%) is considered high.

Reducing Debt: ACL's debt to equity ratio has increased from 14.2% to 474.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ACL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ACL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is ArcelorMittal South Africa current dividend yield, its reliability and sustainability?

4.37%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ACL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ACL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ACL is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACL's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Kobus Verster (54 yo)

2.92yrs

Tenure

R10,643,744

Compensation

Mr. Hendrik Jacobus Verster, also known as Kobus, has been Vice President of ArcelorMittal since 2018. He served as Chairman at McConnell Dowell Corporation Limited. He serves as Executive Director of Arce...


CEO Compensation Analysis

Compensation vs Market: Kobus's total compensation ($USD714.92K) is above average for companies of similar size in the ZA market ($USD311.59K).

Compensation vs Earnings: Kobus's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hendrik Verster
CEO & Executive Director2.92yrsR10.64mno data
Avinash Maharaj
CFO & Executive Director2.25yrsR4.73m0.000040%
ZAR 634.2
Jake P. Olivier
Chief Operating Officer1.83yrsR4.86mno data
Mohamed Adam
General Counsel & CoSEC5.92yrsR2.23mno data
Tami Didiza
Senior Manager of Stakeholder Management & Communications1.5yrsR1.89mno data
Colin Hautz
Chief Marketing Officer4yrsR6.07mno data
Sedick Achmat
Chief Human Resources Officer3yrsR2.38mno data
J. Swart
Chief Procurement Officer1.17yrsR2.28mno data
Gavin Griffiths
Chief Strategy Officerno dataR2.56mno data
Werner Venter
General Manager of Vanderbijlpark Works3.5yrsR2.42mno data
J. Kotze
Executive Manager Newcastle1.17yrsR2.18mno data
Vasco de Sousa
Chief Information Officerno datano datano data

2.6yrs

Average Tenure

Experienced Management: ACL's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hendrik Verster
CEO & Executive Director2.92yrsR10.64mno data
Avinash Maharaj
CFO & Executive Director2.25yrsR4.73m0.000040%
ZAR 634.2
Gert Gouws
Non-Executive Director3.17yrsR487.96k0.000030%
ZAR 475.7
Neville Nicolau
Independent Non-Executive Director5.33yrsR574.96k0.0091%
ZAR 144.9k
Paul Makwana
Independent Non-Executive Chairman7.92yrsR1.50m0%
ZAR 0
Brian Aranha
Non-Executive Director2.83yrsno datano data
Jacob Rasethlake Modise
Independent Non-Executive Director7.25yrsR644.66k0.0078%
ZAR 123.4k
Noluthando Gosa
Non-Executive Director4.08yrsR361.20k6.27%
ZAR 99.4m
Lungile Constance Cele
Independent Non-Executive Director5yrsR450.04kno data
Nomavuso Mnxasana
Independent Non-Executive Director7.25yrsR687.96kno data
Katebe Monica Musonda
Independent Non-Executive Director3.58yrsR340.79kno data
Raman Karol
Non-Executive Director2.08yrsno datano data

3.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: ACL's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ArcelorMittal South Africa Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ArcelorMittal South Africa Ltd
  • Ticker: ACL
  • Exchange: JSE
  • Founded: 1928
  • Industry: Steel
  • Sector: Materials
  • Market Cap: R1.586b
  • Shares outstanding: 1.09b
  • Website: https://southafrica.arcelormittal.com

Number of Employees


Location

  • ArcelorMittal South Africa Ltd
  • Delfos Boulevard
  • Vanderbijlpark
  • Gauteng
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISC1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1990
ACLJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMar 1990
ARCX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 1990
AMSI.YOTCPK (Pink Sheets LLC)SPONS ADR NEWUSUSDJun 2003

Biography

ArcelorMittal South Africa Ltd, together with its subsidiaries, manufactures and sells long and flat steel products. The company operates through Flat Steel Products, Long Steel Products, and Coke and Chem...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 17:01
End of Day Share Price2021/01/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.