ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ARRD - LU1598757687 - Common Stock
45.87 EUR
-0.31 (-0.67%)
ARRD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 45 industry peers in the Metals & Mining industry. Both the profitability and financial health of ARRD have multiple concerns. ARRD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ARRD was profitable.
- ARRD had a positive operating cash flow in the past year.
- 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 of 2.62%. This is comparable to the rest of the industry: ARRD outperforms 43.18% of its industry peers.
- ARRD has a Return On Equity of 4.73%. This is in the lower half of the industry: ARRD underperforms 63.64% of its industry peers.
- With a Return On Invested Capital value of 2.71%, ARRD is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- ARRD had an Average Return On Invested Capital over the past 3 years of 5.89%. This 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 has a Profit Margin of 4.23%. This is comparable to the rest of the industry: ARRD outperforms 45.45% of its industry peers.
- ARRD's Profit Margin has declined in the last couple of years.
- ARRD's Operating Margin of 5.21% is on the low side compared to the rest of the industry. ARRD is outperformed by 61.36% of its industry peers.
- In the last couple of years the Operating Margin of ARRD has grown nicely.
- The Gross Margin of ARRD (10.02%) is worse than 84.09% of its industry peers.
- In the last couple of years the Gross Margin of ARRD has grown nicely.
| 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.
- ARRD has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ARRD has less shares outstanding
- ARRD has a worse debt/assets ratio than last year.
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 has a worse Debt to FCF ratio (323.22) than 63.64% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that ARRD is not too dependend on debt financing.
- ARRD has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 323.22 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC9.09%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that ARRD should not have too much problems paying its short term obligations.
- ARRD's Current ratio of 1.39 is on the low side compared to the rest of the industry. ARRD is outperformed by 84.09% 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 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The earnings per share for ARRD have decreased by -2.78% in the last year.
- ARRD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -39.64% yearly.
- The Revenue has decreased by -1.90% in the past year.
- The Revenue has been decreasing by -2.43% on average over the past years.
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
- Based on estimates for the next years, ARRD will show a very strong growth in Earnings Per Share. The EPS will grow by 27.53% on average per year.
- The Revenue is expected to grow by 2.09% on average over the next years.
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
- 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.
- 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
- The Price/Earnings ratio is 15.39, which indicates a correct valuation of ARRD.
- Based on the Price/Earnings ratio, ARRD is valued cheaply inside the industry as 84.09% of the companies are valued more expensively.
- ARRD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.67 indicates a reasonable valuation of ARRD.
- Based on the Price/Forward Earnings ratio, ARRD is valued cheaply inside the industry as 93.18% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ARRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
- 77.27% of the companies in the same industry are more expensive than ARRD, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARRD indicates a slightly more expensive valuation: ARRD is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 907.43 | ||
| EV/EBITDA | 8.29 |
4.3 Compensation for Growth
- The 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)0.6
PEG (5Y)N/A
EPS Next 2Y31.04%
EPS Next 3Y27.53%
5. Dividend
5.1 Amount
- ARRD has a yearly dividend return of 0.96%, which is pretty low.
- 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
- On average, the dividend of ARRD grows each year by 37.57%, which is quite nice.
Dividend Growth(5Y)37.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 15.59% of the earnings are spent on dividend by ARRD. This is a low number and sustainable payout ratio.
- ARRD's earnings are growing slower than its dividend. 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 3 / 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 4 / 10 and the dividend payout ratio is 15.59%.