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ArcelorMittal South Africa has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
ArcelorMittal South Africa Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
ArcelorMittal South Africa did not have earnings to cover the interest expense.
ArcelorMittal South Africa's debt to revenue ratio for the quarter that ended in Dec. 2025 was 0.31.
As of today, ArcelorMittal South Africa's Altman Z-Score is 1.17.
ArcelorMittal South Africa (FRA:ISC1) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
ArcelorMittal South Africa has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
ArcelorMittal South Africa Financial Strength Related Terms
FRA:ISC1 vs NUE, STLD, RS: Financial Strength Comparison
For the Steel subindustry, ArcelorMittal South Africa's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Steel Industry
For the Steel industry and Basic Materials sector, ArcelorMittal South Africa's Financial Strength distribution charts can be found below:
* The bar in red indicates where ArcelorMittal South Africa's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
ArcelorMittal South Africa has a Z-score of 1.17, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.17 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
ArcelorMittal South Africa (FRA:ISC1) has a Financial Strength of 3 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on ArcelorMittal South Africa and its competitors. This is 40% below median its historical median of 5.00. Over the past decade, ArcelorMittal South Africa's Financial Strength has ranged from 2.00 to 7.00.
Is ArcelorMittal South Africa's Financial Strength too high?
ArcelorMittal South Africa's current Financial Strength of 3 is 40% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 7.00. Overall, ArcelorMittal South Africa has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ArcelorMittal South Africa's Financial Strength compare to NUE and STLD?
ArcelorMittal South Africa's Financial Strength of 3 can be compared against companies in the Steel industry. Historically, ArcelorMittal South Africa's own Financial Strength has ranged from 2.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Steel company?
A good Financial Strength depends on the Steel industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on ArcelorMittal South Africa and its competitors. ArcelorMittal South Africa's current Financial Strength is 3, which is 40% below median its own 10-year median of 5.00. 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?
Based on GuruFocus' analysis, ArcelorMittal South Africa (FRA:ISC1) is currently considered Fairly Valued. The stock's GF Value™ is €0.06, compared to a current price of €0.06 — trading 5% below its estimated fair value. The current Financial Strength is 3, which is 40% below median its 10-year median of 5.00. ArcelorMittal South Africa's overall GF Score™ is 54/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For ArcelorMittal South Africa (FRA:ISC1), the current Financial Strength is 3 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 (FRA:ISC1) Overvalued in 2026?
Based on GuruFocus' analysis, ArcelorMittal South Africa stock appears to be undervalued.
The current stock price of €0.06 is trading 5% below its estimated GF Value™ of €0.06.
GuruFocus considers ArcelorMittal South Africa to be Fairly Valued.
Key valuation signals for FRA:ISC1:
Financial Strength: 3 (40% below median its 10-year median of 5.00)
GF Value™: €0.06 vs. price of €0.06 (5% below fair value)
No single metric tells the full story. See the FRA: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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