ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ARRD - LU1598757687 - Common Stock
46.8 EUR
+0.49 (+1.06%)
ARRD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 45 industry peers in the Metals & Mining industry. ARRD has a medium profitability rating, but doesn't score so well on its financial health evaluation. ARRD is valued correctly, but it does not seem to be growing.
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 (2.62%) which is in line with its industry peers.
- The Return On Equity of ARRD (4.73%) is worse than 62.22% of its industry peers.
- ARRD's Return On Invested Capital of 2.71% is on the low side compared to the rest of the industry. ARRD is outperformed by 62.22% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ARRD is below the industry average of 8.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 4.73% | ||
| ROIC | 2.71% |
ROA(3y)4.11%
ROA(5y)5.59%
ROE(3y)7.31%
ROE(5y)10.09%
ROIC(3y)5.89%
ROIC(5y)6.85%
1.3 Margins
- ARRD's Profit Margin of 4.23% is in line compared to the rest of the industry. ARRD outperforms 48.89% of its industry peers.
- ARRD's Profit Margin has declined in the last couple of years.
- ARRD has a Operating Margin (5.21%) which is in line with its industry peers.
- ARRD's Operating Margin has improved in the last couple of years.
- ARRD has a worse Gross Margin (10.02%) than 86.67% of its industry peers.
- ARRD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.21% | ||
| PM (TTM) | 4.23% | ||
| GM | 10.02% |
OM growth 3Y-35.65%
OM growth 5Y25.94%
PM growth 3Y-52.12%
PM growth 5YN/A
GM growth 3Y-26.65%
GM growth 5Y13.62%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARRD is destroying value.
- The number of shares outstanding for ARRD has been reduced compared to 1 year ago.
- The number of shares outstanding for ARRD has been reduced compared to 5 years ago.
- The debt/assets ratio for ARRD is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of ARRD is 323.22, which is on the high side as it means it would take ARRD, 323.22 years of fcf income to pay off all of its debts.
- ARRD's Debt to FCF ratio of 323.22 is on the low side compared to the rest of the industry. ARRD is outperformed by 62.22% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that ARRD is not too dependend on debt financing.
- ARRD's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. ARRD outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 323.22 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC8.92%
2.3 Liquidity
- ARRD has a Current Ratio of 1.39. 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 (1.39) than 84.44% of its industry peers.
- A Quick Ratio of 0.58 indicates that ARRD may have some problems paying its short term obligations.
- ARRD has a worse Quick ratio (0.58) than 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- ARRD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.78%.
- Measured over the past years, ARRD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -39.64% on average per year.
- ARRD shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
- Measured over the past years, ARRD shows a decrease in Revenue. The Revenue has been decreasing by -2.43% on average per year.
EPS 1Y (TTM)-2.78%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-1.59%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%3.03%
3.2 Future
- The Earnings Per Share is expected to grow by 27.53% on average over the next years. This is a very strong growth
- ARRD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.09% yearly.
EPS Next Y25.82%
EPS Next 2Y31.04%
EPS Next 3Y27.53%
EPS Next 5YN/A
Revenue Next Year-1.71%
Revenue Next 2Y2.99%
Revenue Next 3Y2.89%
Revenue Next 5Y2.09%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ARRD is valuated correctly with a Price/Earnings ratio of 15.97.
- Compared to the rest of the industry, the Price/Earnings ratio of ARRD indicates a somewhat cheap valuation: ARRD is cheaper than 80.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, ARRD is valued a bit cheaper.
- A Price/Forward Earnings ratio of 11.06 indicates a reasonable valuation of ARRD.
- 91.11% of the companies in the same industry are more expensive than ARRD, based on the Price/Forward Earnings ratio.
- ARRD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARRD is valued a bit cheaper than the industry average as 71.11% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ARRD is valued a bit more expensive than 62.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 940.57 | ||
| EV/EBITDA | 8.46 |
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.
- ARRD's earnings are expected to grow with 27.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y31.04%
EPS Next 3Y27.53%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.96%, ARRD is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.67, ARRD has a dividend in line with its industry peers.
- With a Dividend Yield of 0.96, ARRD pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
- The dividend of ARRD is nicely growing with an annual growth rate of 37.57%!
Dividend Growth(5Y)37.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ARRD pays out 15.59% of its income as dividend. This is a sustainable payout ratio.
- The dividend of ARRD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP15.59%
EPS Next 2Y31.04%
EPS Next 3Y27.53%
ARCELORMITTAL / ARRD.DE FAQ
Can you provide the ChartMill fundamental rating for ARCELORMITTAL?
ChartMill assigns a fundamental rating of 3 / 10 to ARRD.DE.
Can you provide the valuation status for ARCELORMITTAL?
ChartMill assigns a valuation rating of 6 / 10 to ARCELORMITTAL (ARRD.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ARCELORMITTAL?
ARCELORMITTAL (ARRD.DE) has a profitability rating of 4 / 10.
What is the financial health of ARCELORMITTAL (ARRD.DE) stock?
The financial health rating of ARCELORMITTAL (ARRD.DE) is 2 / 10.
Is the dividend of ARCELORMITTAL sustainable?
The dividend rating of ARCELORMITTAL (ARRD.DE) is 3 / 10 and the dividend payout ratio is 15.59%.