ArcelorMittal South Africa Limited

JSE:ACL Stock Report

Market Cap: R1.3b

ArcelorMittal South Africa Valuation

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

Valuation Score

5/6

Valuation 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.

Discounted Cash Flow
Simply Wall St
R11.13
Fair Value
89.1% undervalued intrinsic discount
1
Number of Analysts

Below Fair Value: ACL (ZAR1.21) is trading below our estimate of fair value (ZAR11.13)

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.

The above table shows the Price to Sales ratio for ACL. This is calculated by dividing ACL's market cap by their current revenue.
What is ACL's PS Ratio?
PS Ratio0.03x
SalesR41.10b
Market CapR1.35b

Price to Sales Ratio vs Peers

How does ACL's PS Ratio compare to its peers?

The above table shows the PS ratio for ACL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.3x
MRF Merafe Resources
0.4x-6.8%R3.7b
GML Gemfields Group
0.3x25.8%R1.5b
HLM Hulamin
0.08xn/aR1.1b
CPR Copper 360
12.3xn/aR1.0b
ACL ArcelorMittal South Africa
0.03x10.4%R1.3b

Price-To-Sales vs Peers: ACL is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (3.3x).


Price to Sales Ratio vs Industry

How does ACL's PS Ratio compare vs other companies in the ZA Metals and Mining Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.4x7.5%
ACL ArcelorMittal South Africa
0.03x10.4%US$72.19m
HLM Hulamin
0.08xn/aUS$60.19m
CMO Chrometco
0.1xn/aUS$8.36m
No more companies available in this PS range
ACL 0.0xIndustry Avg. 1.4xNo. of Companies3PS00.81.62.43.24+
3 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.4x33.7%
ACL ArcelorMittal South Africa
0.03x110.6%US$72.19m
No more companies

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 (1.4x).


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.

ACL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.03x
Fair PS Ratio0.4x

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 Price Target
Consensus Narrative from 1 Analyst
R2.25
Fair Value
46.2% undervalued intrinsic discount
1
Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/01 23:41
End of Day Share Price 2025/01/31 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* 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 here.

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 .

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.

AnalystInstitution
Wade NapierAvior Capital Markets
Caroline LearmonthBarclays
Brian MorganBNP Paribas Securities (Asia)