ArcelorMittal South Africa (STU:ISC1) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
ArcelorMittal South Africa had a gross margin of 39.54% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
ArcelorMittal South Africa Gross Margin % Related Terms
ArcelorMittal South Africa Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:ISC1 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, ArcelorMittal South Africa's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ArcelorMittal South Africa Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, ArcelorMittal South Africa's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ArcelorMittal South Africa's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
ArcelorMittal South Africa (STU:ISC1) has a Gross Margin % of 39.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ArcelorMittal South Africa and its competitors. This is near median its historical median of 41.33. Over the past decade, ArcelorMittal South Africa's Gross Margin % has ranged from 35.39 to 58.00. According to the industry distribution chart, ArcelorMittal South Africa ranks #56 out of 597 companies in the Steel industry, placing it in the top 9.4%.
Is ArcelorMittal South Africa's Gross Margin % too high?
ArcelorMittal South Africa's current Gross Margin % of 39.54% is near median its 10-year median of 41.33. Over the past 10 years, this metric has ranged from a low of 35.39 to a high of 58.00. The Steel industry median Gross Margin % is 12.60. ArcelorMittal South Africa's value of 39.54% is 213.8% above this industry median. Based on the distribution chart, ArcelorMittal South Africa ranks #56 out of 597 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, ArcelorMittal South Africa has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does ArcelorMittal South Africa's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, ArcelorMittal South Africa ranks #56 out of 597 companies for Gross Margin %. This places ArcelorMittal South Africa in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.60. ArcelorMittal South Africa's value of 39.54% is 213.8% above this benchmark. Historically, ArcelorMittal South Africa's own Gross Margin % has ranged from 35.39 to 58.00 over the past decade. While the company's 10-year median is 41.33 vs. the industry median of 12.60, ArcelorMittal South Africa has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 597 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ArcelorMittal South Africa's current Gross Margin % of 39.54% is 213.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on ArcelorMittal South Africa and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ArcelorMittal South Africa's current Gross Margin % is 39.54%, which is near median its own 10-year median of 41.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ArcelorMittal South Africa stock overvalued right now?
ArcelorMittal South Africa (STU:ISC1) has a current Gross Margin % of 39.54%. The stock's GF Value™ is €0.06, compared to a current price of €0.06 — trading 0.8% above its estimated fair value. The current Gross Margin % is 39.54%, which is near median its 10-year median of 41.33 and 213.8% above the Steel industry median of 12.60. ArcelorMittal South Africa's overall GF Score™ is 54/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For ArcelorMittal South Africa (STU:ISC1), the current Gross Margin % is 39.54% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ArcelorMittal South Africa (STU:ISC1) Overvalued in 2026?
Based on GuruFocus' analysis, ArcelorMittal South Africa stock appears to be overvalued.
The current stock price of €0.06 is trading 0.8% above its estimated GF Value™ of €0.06.
Key valuation signals for STU:ISC1:
Gross Margin %: 39.54% (near median its 10-year median of 41.33)
GF Value™: €0.06 vs. price of €0.06 (0.8% above fair value)
Industry Position: 213.8% above the Steel median (#56 of 597)
No single metric tells the full story. See the STU:ISC1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ArcelorMittal South Africa Ltd is a South Africa-based steel-producing company. The company's operating segments include Steel operations; Non-steel operations; Corporate and others. It generates the majority of total revenue from the Steel Operations segment that consist of Vanderbijlpark plant, Newcastle plant, Vereeniging plant and ArcelorMittal Rail and Structures. The product range consists of hot-rolled coil, plate, coiled rounds, flats, reinforced bars, rounds, billets and channels, and commercial coke among others. The group operates mainly in South Africa. Export sales are mostly sold in sub-Saharan Africa, Asia, Europe, and America.
54GF Score
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