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ACL

ArcelorMittal South AfricaJSE:ACL Stock Report

Last Price

R9.97

Market Cap

R11.1b

7D

-3.2%

1Y

597.2%

Updated

23 Jan, 2022

Data

Company Financials +
ACL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends0/6

ACL Stock Overview

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

ArcelorMittal South Africa Competitors

Afarak Group Oyj

HLSE:AFAGR

€32.2m

Price History & Performance

Summary of all time highs, changes and price drops for ArcelorMittal South Africa
Historical stock prices
Current Share PriceR9.97
52 Week HighR11.34
52 Week LowR1.30
Beta1.06
1 Month Change11.27%
3 Month Change53.39%
1 Year Change597.20%
3 Year Change174.66%
5 Year Change-23.19%
Change since IPO-54.27%

Recent News & Updates

Aug 11
One ArcelorMittal South Africa Ltd (JSE:ACL) Analyst Just Slashed Their 2021 Revenue Estimates

One ArcelorMittal South Africa Ltd (JSE:ACL) Analyst Just Slashed Their 2021 Revenue Estimates

Today is shaping up negative for ArcelorMittal South Africa Ltd ( JSE:ACL ) shareholders, with the covering analyst...

Aug 05
We Think ArcelorMittal South Africa's (JSE:ACL) Healthy Earnings Might Be Conservative

We Think ArcelorMittal South Africa's (JSE:ACL) Healthy Earnings Might Be Conservative

The stock was sluggish on the back of ArcelorMittal South Africa Ltd's ( JSE:ACL ) recent earnings report. We have done...

Shareholder Returns

ACLZA Metals and MiningZA Market
7D-3.2%2.6%-0.3%
1Y597.2%3.4%13.9%

Return vs Industry: ACL exceeded the ZA Metals and Mining industry which returned 3.4% over the past year.

Return vs Market: ACL exceeded the ZA Market which returned 13.9% over the past year.

Price Volatility

Is ACL's price volatile compared to industry and market?
ACL volatility
ACL Average Weekly Movement8.0%
Metals and Mining Industry Average Movement7.0%
Market Average Movement5.7%
10% most volatile stocks in ZA Market12.1%
10% least volatile stocks in ZA Market3.3%

Stable Share Price: ACL is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ACL's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
19287,135Kobus Versterhttps://www.arcelormittalsa.com

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 Chemicals segments. It offers flat steel products, including hot rolled plates, hot and cold rolled coils, galvanized coils, color coils, electrogalvanized coils, and tinplate coils.

ArcelorMittal South Africa Fundamentals Summary

How do ArcelorMittal South Africa's earnings and revenue compare to its market cap?
ACL fundamental statistics
Market CapR11.11b
Earnings (TTM)R2.58b
Revenue (TTM)R31.23b

4.3x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACL income statement (TTM)
RevenueR31.23b
Cost of RevenueR18.88b
Gross ProfitR12.34b
ExpensesR9.76b
EarningsR2.58b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.32
Gross Margin39.52%
Net Profit Margin8.28%
Debt/Equity Ratio147.4%

How did ACL perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACL (ZAR9.97) is trading below our estimate of fair value (ZAR79.64)

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


Price To Earnings Ratio

PE vs Industry: ACL is good value based on its PE Ratio (4.3x) compared to the ZA Metals and Mining industry average (6x).

PE vs Market: ACL is good value based on its PE Ratio (4.3x) compared to the ZA market (10.9x).


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 overvalued based on its PB Ratio (2.4x) compared to the ZA Metals and Mining industry average (1.3x).


Future Growth

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

5.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ACL's forecast earnings growth is above the savings rate (8.8%).

Earnings vs Market: Insufficient data to determine if ACL's earnings are forecast to grow faster than the ZA market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ACL's revenue (5.7% per year) is forecast to grow slower than the ZA market (6.3% per year).

High Growth Revenue: ACL's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ACL's Return on Equity is forecast to be high in 3 years time


Past Performance

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

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACL has high quality earnings.

Growing Profit Margin: ACL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ACL has become profitable over the past 5 years, growing earnings by 29.4% per year.

Accelerating Growth: ACL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ACL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (218.4%).


Return on Equity

High ROE: Whilst ACL's Return on Equity (56.15%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is ArcelorMittal South Africa's financial position?


Financial Position Analysis

Short Term Liabilities: ACL's short term assets (ZAR16.0B) exceed its short term liabilities (ZAR13.9B).

Long Term Liabilities: ACL's short term assets (ZAR16.0B) exceed its long term liabilities (ZAR6.7B).


Debt to Equity History and Analysis

Debt Level: ACL's net debt to equity ratio (60.5%) is considered high.

Reducing Debt: ACL's debt to equity ratio has increased from 10.1% to 147.4% over the past 5 years.

Debt Coverage: ACL's debt is well covered by operating cash flow (29.7%).

Interest Coverage: ACL's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet


Dividend

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

1.93%

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?

2.7yrs

Average management tenure


CEO

Kobus Verster (55 yo)

3.92yrs

Tenure

R8,763,489

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 ($USD581.41K) is below average for companies of similar size in the ZA market ($USD862.79K).

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


Leadership Team

Experienced Management: ACL's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: ACL's board of directors are considered experienced (4.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: ArcelorMittal South Africa Ltd
  • Ticker: ACL
  • Exchange: JSE
  • Founded: 1928
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: R11.113b
  • Shares outstanding: 1.11b
  • Website: https://www.arcelormittalsa.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 17:00
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.