ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ARRD - LU1598757687 - Common Stock
45.64 EUR
-0.23 (-0.5%)
Taking everything into account, ARRD scores 3 out of 10 in our fundamental rating. ARRD was compared to 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
- With a Return On Assets value of 2.62%, ARRD perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 4.73%, ARRD is doing worse than 60.00% of the companies in the same industry.
- ARRD has a Return On Invested Capital of 2.71%. This is in the lower half of the industry: ARRD underperforms 60.00% of its industry peers.
- 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
- With a Profit Margin value of 4.23%, ARRD perfoms like the industry average, outperforming 51.11% of the companies in the same industry.
- In the last couple of years the Profit Margin of ARRD has declined.
- ARRD has a Operating Margin of 5.21%. This is comparable to the rest of the industry: ARRD outperforms 44.44% 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 84.44% 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.
- 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
- ARRD has a debt to FCF ratio of 323.22. This is a negative value and a sign of low solvency as ARRD would need 323.22 years to pay back of all of its debts.
- ARRD has a Debt to FCF ratio of 323.22. This is in the lower half of the industry: ARRD underperforms 60.00% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that ARRD is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.19, ARRD perfoms like the industry average, outperforming 57.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 323.22 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC8.92%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that ARRD should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.39, ARRD is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
- ARRD has a Quick Ratio of 1.39. 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's Quick ratio of 0.58 is on the low side compared to the rest of the industry. ARRD is outperformed by 82.22% 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.
- ARRD shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
- 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
- The Earnings Per Share is expected to grow by 27.53% on average over the next years. This is a very strong growth
- 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.
- 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 15.32, which indicates a correct valuation of ARRD.
- 84.44% of the companies in the same industry are more expensive than ARRD, based on the Price/Earnings ratio.
- ARRD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- ARRD is valuated reasonably with a Price/Forward Earnings ratio of 10.62.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARRD indicates a rather cheap valuation: ARRD is cheaper than 93.33% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ARRD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.32 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARRD is valued a bit cheaper than the industry average as 75.56% of the companies are valued more expensively.
- 60.00% of the companies in the same industry are cheaper than ARRD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 902.88 | ||
| EV/EBITDA | 8.29 |
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 27.53% in the coming years.
PEG (NY)0.59
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 1.82.
| 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
- 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 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%.