ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
FRA:ARRD - Deutsche Boerse Ag - LU1598757687 - Common Stock - Currency: EUR
ARRD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Metals & Mining industry. There are concerns on the financial health of ARRD while its profitability can be described as average. ARRD has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ARRD had positive earnings in the past year.
In the past year ARRD had a positive cash flow from operations.
ARRD had positive earnings in 4 of the past 5 years.
ARRD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARRD has a Return On Assets (1.50%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.72%, ARRD is in line with its industry, outperforming 54.05% of the companies in the same industry.
ARRD has a Return On Invested Capital of 3.46%. This is comparable to the rest of the industry: ARRD outperforms 51.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 2.72% | ||
| ROIC | 3.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ARRD has a Profit Margin of 2.14%. This is comparable to the rest of the industry: ARRD outperforms 54.05% of its industry peers.
ARRD's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.83%, ARRD perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
In the last couple of years the Operating Margin of ARRD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 2.14% | ||
| GM | N/A |
OM growth 3Y-35.65%
OM growth 5Y25.94%
PM growth 3Y-52.12%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ARRD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for ARRD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
The Debt to FCF ratio of ARRD is 25.87, which is on the high side as it means it would take ARRD, 25.87 years of fcf income to pay off all of its debts.
ARRD has a Debt to FCF ratio (25.87) which is in line with its industry peers.
ARRD has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
ARRD has a Debt to Equity ratio of 0.18. This is in the better half of the industry: ARRD outperforms 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC8.43%
2.3 Liquidity
ARRD has a Current Ratio of 1.35. This is a normal value and indicates that ARRD is financially healthy and should not expect problems in meeting its short term obligations.
ARRD has a worse Current ratio (1.35) than 72.97% of its industry peers.
ARRD has a Quick Ratio of 1.35. This is a bad value and indicates that ARRD is not financially healthy enough and could expect problems in meeting its short term obligations.
ARRD has a worse Quick ratio (0.59) than 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
ARRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.39%.
ARRD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -41.48% yearly.
ARRD shows a decrease in Revenue. In the last year, the revenue decreased by -8.54%.
ARRD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.43% yearly.
EPS 1Y (TTM)-53.39%
EPS 3Y-41.48%
EPS 5YN/A
EPS Q2Q%-55.93%
Revenue 1Y (TTM)-8.54%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%1.11%
3.2 Future
ARRD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.00% yearly.
ARRD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.38% yearly.
EPS Next Y53.04%
EPS Next 2Y38.47%
EPS Next 3Y24%
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y1.45%
Revenue Next 3Y1.38%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.34, which indicates a correct valuation of ARRD.
Based on the Price/Earnings ratio, ARRD is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. ARRD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.07, which indicates a very decent valuation of ARRD.
Based on the Price/Forward Earnings ratio, ARRD is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
ARRD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRD is valued a bit cheaper than 70.27% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ARRD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.16 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
ARRD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ARRD's earnings are expected to grow with 24.00% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y38.47%
EPS Next 3Y24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.16%, ARRD has a reasonable but not impressive dividend return.
ARRD's Dividend Yield is a higher than the industry average which is at 3.77.
ARRD's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
29.35% of the earnings are spent on dividend by ARRD. This is a low number and sustainable payout ratio.
DP29.35%
EPS Next 2Y38.47%
EPS Next 3Y24%
FRA:ARRD (3/7/2025, 7:00:00 PM)
30.49
-1.67 (-5.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners20.82%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap26.00B
Analysts80
Price Target31.55 (3.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend0.41
Dividend Growth(5Y)N/A
DP29.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.35%
Min EPS beat(2)-34.3%
Max EPS beat(2)-12.4%
EPS beat(4)1
Avg EPS beat(4)-13.46%
Min EPS beat(4)-34.3%
Max EPS beat(4)22.07%
EPS beat(8)5
Avg EPS beat(8)26.38%
EPS beat(12)8
Avg EPS beat(12)45.46%
EPS beat(16)11
Avg EPS beat(16)36.52%
Revenue beat(2)0
Avg Revenue beat(2)-3.71%
Min Revenue beat(2)-5.3%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-5.3%
Max Revenue beat(4)-2.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.96%
Revenue beat(12)4
Avg Revenue beat(12)-0.46%
Revenue beat(16)5
Avg Revenue beat(16)-1.32%
PT rev (1m)5%
PT rev (3m)5.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.99%
EPS NY rev (1m)0.59%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 8.07 | ||
| P/S | 0.45 | ||
| P/FCF | 63.16 | ||
| P/OCF | 5.82 | ||
| P/B | 0.57 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)2.47
EY8.1%
EPS(NY)3.78
Fwd EY12.39%
FCF(TTM)0.48
FCFY1.58%
OCF(TTM)5.24
OCFY17.19%
SpS67.44
BVpS53.16
TBVpS48.35
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 2.72% | ||
| ROCE | 5.39% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 4.13% | ||
| OM | 5.83% | ||
| PM (TTM) | 2.14% | ||
| GM | N/A | ||
| FCFM | 0.72% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-35.65%
OM growth 5Y25.94%
PM growth 3Y-52.12%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 160.3% | ||
| Cap/Sales | 7.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.93% | ||
| Profit Quality | 33.38% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | N/A |
F-Score6
WACC8.43%
ROIC/WACC0.41
Cap/Depr(3y)153.41%
Cap/Depr(5y)132.37%
Cap/Sales(3y)6.05%
Cap/Sales(5y)5.33%
Profit Quality(3y)145.24%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.39%
EPS 3Y-41.48%
EPS 5YN/A
EPS Q2Q%-55.93%
EPS Next Y53.04%
EPS Next 2Y38.47%
EPS Next 3Y24%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.54%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%1.11%
Revenue Next Year-0.65%
Revenue Next 2Y1.45%
Revenue Next 3Y1.38%
Revenue Next 5YN/A
EBIT growth 1Y-25.41%
EBIT growth 3Y-39.88%
EBIT growth 5Y22.88%
EBIT Next Year97.14%
EBIT Next 3Y32.8%
EBIT Next 5Y19.22%
FCF growth 1Y-85.26%
FCF growth 3Y-59.84%
FCF growth 5Y-28.87%
OCF growth 1Y-36.53%
OCF growth 3Y-21.18%
OCF growth 5Y-4.24%