ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ARRD - LU1598757687 - Common Stock
46.5 EUR
+0.63 (+1.37%)
We assign a fundamental rating of 3 out of 10 to ARRD. 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ARRD was profitable.
- In the past year ARRD had a positive cash flow from operations.
- ARRD had positive earnings in 4 of the past 5 years.
- In the past 5 years ARRD always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.62%, ARRD is in line with its industry, outperforming 46.67% of the companies in the same industry.
- With a Return On Equity value of 4.73%, ARRD is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 2.71%, ARRD is not doing good in the industry: 60.00% 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 (4.23%) which is comparable to the rest of the 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.
- With a Gross Margin value of 10.02%, ARRD is not doing good in the industry: 84.44% of the companies in the same industry are doing better.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARRD is destroying value.
- Compared to 1 year ago, ARRD has less shares outstanding
- ARRD has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ARRD has a worse debt to assets ratio.
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.
- Looking at the Debt to FCF ratio, with a value of 323.22, ARRD is doing worse than 60.00% of the companies in the same industry.
- ARRD has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.19, ARRD is in line with its industry, 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.
- Looking at the Current ratio, with a value of 1.39, ARRD is doing worse than 82.22% of the companies in the same industry.
- 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 has a worse Quick ratio (0.58) than 82.22% 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.
- Looking at the last year, ARRD shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last year.
- 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
- ARRD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.53% yearly.
- 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.
- 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
- Based on the Price/Earnings ratio of 15.60, the valuation of ARRD can be described as correct.
- ARRD's Price/Earnings ratio is rather cheap when compared to the industry. ARRD is cheaper than 84.44% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ARRD is valued a bit cheaper.
- ARRD is valuated reasonably with a Price/Forward Earnings ratio of 10.82.
- Based on the Price/Forward Earnings ratio, ARRD is valued cheaper than 93.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ARRD to the average of the S&P500 Index (25.98), we can say ARRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARRD is valued a bit cheaper than 75.56% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ARRD is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 919.9 | ||
| 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
- 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 1.81.
| 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.
- 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 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 3 / 10 and the dividend payout ratio is 15.59%.