ArcelorMittal South Africa Valuation
Is ACL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
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 ACL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ACL (ZAR0.86) is trading below our estimate of fair value (ZAR7.28)
Significantly Below Fair Value: ACL is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ACL?
Key metric: As ACL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is ACL's PS Ratio? | |
|---|---|
| PS Ratio | 0.02x |
| Sales | R38.60b |
| Market Cap | R958.57m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.2x |
| Enterprise Value/EBITDA | -2.6x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does ACL's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 3.1x | ||
MRF Merafe Resources | 0.3x | -6.8% | R3.0b |
CPR Copper 360 | 11.9x | n/a | R978.2m |
HLM Hulamin | 0.07x | n/a | R939.7m |
GML Gemfields Group | 0.3x | 25.8% | R1.4b |
ACL ArcelorMittal South Africa | 0.02x | 15.0% | R958.6m |
Price-To-Sales vs Peers: ACL is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (3.1x).
Price to Sales Ratio vs Industry
How does ACL's PS Ratio compare vs other companies in the ZA Metals and Mining Industry?
| 3 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
| Industry Avg. | 1.3x | 6.6% | |
ACL ArcelorMittal South Africa | 0.02x | 15.0% | US$52.19m |
HLM Hulamin | 0.07x | n/a | US$51.16m |
CMO Chrometco | 0.1x | n/a | US$8.36m |
| 3 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
| Industry Avg. | 1.3x | 29.0% | |
ACL ArcelorMittal South Africa | 0.02x | 134.6% | US$52.19m |
Price-To-Sales vs Industry: ACL is good value based on its Price-To-Sales Ratio (0x) compared to the African Metals and Mining industry average (1.3x).
Price to Sales Ratio vs Fair Ratio
What is ACL'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.02x |
| Fair PS Ratio | 0.4x |
Price-To-Sales vs Fair Ratio: ACL is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).
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.
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2025/02/15 12:43 |
| End of Day Share Price | 2025/02/14 00:00 |
| Earnings | 2024/12/31 |
| Annual Earnings | 2024/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
| |
| Ownership | 10 years |
| |
| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
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.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
ArcelorMittal South Africa Limited is covered by 13 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Wade Napier | Avior Capital Markets |
| Caroline Learmonth | Barclays |
| Brian Morgan | BNP Paribas Securities (Asia) |