Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Dec. 2025, ArcelorMittal South Africa has a Sloan Ratio of -9.35%, indicating the company is in the safe zone and there is no funny business with accruals.
ArcelorMittal South Africa (FRA:ISC1) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2025, ArcelorMittal South Africa has a Sloan Ratio of -9.35%, indicating the company is in the safe zone and there is no funny business with accruals.
ArcelorMittal South Africa Sloan Ratio % Related Terms
ArcelorMittal South Africa Sloan Ratio % 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.
FRA:ISC1 vs NUE, STLD, RS: Sloan Ratio % Comparison
For the Steel subindustry, ArcelorMittal South Africa's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Steel Industry
For the Steel industry and Basic Materials sector, ArcelorMittal South Africa's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ArcelorMittal South Africa's Sloan Ratio % falls into.
ArcelorMittal South Africa Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
ArcelorMittal South Africa's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -45.345 (Jun. 2025 ) + -99.846 (Dec. 2025 ) = €-145 Mil.
ArcelorMittal South Africa's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 74.392 (Jun. 2025 ) + -78.74 (Dec. 2025 ) = €-4 Mil.
ArcelorMittal South Africa's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -28.462 (Jun. 2025 ) + -12.126 (Dec. 2025 ) = €-41 Mil.
* 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 Sloan Ratio % of -9.35% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on ArcelorMittal South Africa and its competitors.
Is ArcelorMittal South Africa's Sloan Ratio % too high?
ArcelorMittal South Africa's current Sloan Ratio % is -9.35%. 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 Sloan Ratio % compare to NUE and STLD?
ArcelorMittal South Africa's Sloan Ratio % of -9.35% can be compared against companies in the Steel industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Steel company?
A good Sloan Ratio % depends on the Steel industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on ArcelorMittal South Africa and its competitors. ArcelorMittal South Africa's current Sloan Ratio % is -9.35%. 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 (FRA:ISC1) has a current Sloan Ratio % of -9.35%. The stock's GF Value™ is €0.07, compared to a current price of €0.06 — trading 11.4% below its estimated fair value. The current Sloan Ratio % is -9.35%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For ArcelorMittal South Africa (FRA:ISC1), the current Sloan Ratio % is -9.35% 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 11.4% below its estimated GF Value™ of €0.07.
Key valuation signals for FRA:ISC1:
Sloan Ratio %: -9.35%
GF Value™: €0.07 vs. price of €0.06 (11.4% 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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