ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
FRA:ARRD - Deutsche Boerse Ag - LU1598757687 - Common Stock - Currency: EUR
Overall ARRD gets a fundamental rating of 4 out of 10. We evaluated ARRD against 39 industry peers in the Metals & Mining industry. While ARRD is still in line with the averages on profitability rating, there are concerns on its financial health. ARRD is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ARRD had positive earnings in the past year.
ARRD had a positive operating cash flow in the past year.
Of the past 5 years ARRD 4 years were profitable.
In the past 5 years ARRD always reported a positive cash flow from operatings.
1.2 Ratios
ARRD has a Return On Assets of 1.50%. This is comparable to the rest of the industry: ARRD outperforms 46.15% of its industry peers.
ARRD has a Return On Equity of 2.72%. This is comparable to the rest of the industry: ARRD outperforms 46.15% of its industry peers.
The Return On Invested Capital of ARRD (3.46%) is comparable to the rest of the industry.
ARRD had an Average Return On Invested Capital over the past 3 years of 5.89%. This is in line with the industry average of 6.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 2.72% | ||
| ROIC | 3.46% |
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 2.14% is in line compared to the rest of the industry. ARRD outperforms 43.59% of its industry peers.
ARRD's Profit Margin has declined in the last couple of years.
ARRD has a Operating Margin of 5.83%. This is comparable to the rest of the industry: ARRD outperforms 48.72% of its industry peers.
In the last couple of years the Operating Margin of ARRD has grown nicely.
ARRD has a worse Gross Margin (9.80%) than 84.62% of its industry peers.
In the last couple of years the Gross Margin of ARRD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 2.14% | ||
| GM | 9.8% |
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.
Compared to 1 year ago, ARRD has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that ARRD is in the distress zone and has some risk of bankruptcy.
ARRD has a worse Altman-Z score (1.68) than 61.54% of its industry peers.
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 worse Debt to FCF ratio (25.87) than 64.10% of 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.
The Debt to Equity ratio of ARRD (0.18) is better than 71.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.39
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.35 indicates that ARRD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, ARRD is doing worse than 74.36% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that ARRD may have some problems paying its short term obligations.
With a Quick ratio value of 0.59, ARRD is not doing good in the industry: 74.36% of the companies in the same industry are doing better.
| 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 -48.87%.
ARRD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -39.64% yearly.
Looking at the last year, ARRD shows a decrease in Revenue. The Revenue has decreased by -8.54% in the last year.
The Revenue has been decreasing by -2.43% on average over the past years.
EPS 1Y (TTM)-48.87%
EPS 3Y-39.64%
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
The Earnings Per Share is expected to grow by 23.77% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.89% on average over the next years.
EPS Next Y32.71%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
EPS Next 5YN/A
Revenue Next Year-2.32%
Revenue Next 2Y0.65%
Revenue Next 3Y0.95%
Revenue Next 5Y0.89%
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
With a Price/Earnings ratio of 10.02, the valuation of ARRD can be described as very reasonable.
Based on the Price/Earnings ratio, ARRD is valued a bit cheaper than 71.79% of the companies in the same industry.
ARRD is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.56, which indicates a rather cheap valuation of ARRD.
92.31% of the companies in the same industry are more expensive than ARRD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. ARRD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than ARRD, based on the Enterprise Value to EBITDA ratio.
ARRD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.25 | ||
| EV/EBITDA | 4.82 |
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.
A more expensive valuation may be justified as ARRD's earnings are expected to grow with 23.77% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y31.91%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
ARRD has a Yearly Dividend Yield of 1.89%.
ARRD's Dividend Yield is comparable with the industry average which is at 3.70.
Compared to the average S&P500 Dividend Yield of 2.47, ARRD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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 29.35% 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.
DP29.35%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
FRA:ARRD (4/25/2025, 7:00:00 PM)
25.96
+0.42 (+1.64%)
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 Cap22.14B
Analysts78.46
Price Target31.93 (23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend0.43
Dividend Growth(5Y)37.57%
DP29.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-12.4%
Max EPS beat(2)11.87%
EPS beat(4)2
Avg EPS beat(4)-1.92%
Min EPS beat(4)-29.23%
Max EPS beat(4)22.07%
EPS beat(8)6
Avg EPS beat(8)32.15%
EPS beat(12)9
Avg EPS beat(12)49.3%
EPS beat(16)12
Avg EPS beat(16)39.4%
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)1.18%
PT rev (3m)6.09%
EPS NQ rev (1m)-22.98%
EPS NQ rev (3m)-32.66%
EPS NY rev (1m)-5.71%
EPS NY rev (3m)-11.01%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)-2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 7.56 | ||
| P/S | 0.4 | ||
| P/FCF | 56.25 | ||
| P/OCF | 5.18 | ||
| P/B | 0.51 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 4.82 |
EPS(TTM)2.59
EY9.98%
EPS(NY)3.44
Fwd EY13.23%
FCF(TTM)0.46
FCFY1.78%
OCF(TTM)5.01
OCFY19.3%
SpS64.47
BVpS50.82
TBVpS46.22
PEG (NY)0.31
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 | 9.8% | ||
| FCFM | 0.72% |
ROA(3y)4.11%
ROA(5y)5.59%
ROE(3y)7.31%
ROE(5y)10.09%
ROIC(3y)5.89%
ROIC(5y)6.85%
ROICexc(3y)6.67%
ROICexc(5y)7.53%
ROICexgc(3y)7.22%
ROICexgc(5y)8.13%
ROCE(3y)9.27%
ROCE(5y)10.79%
ROICexcg growth 3Y-39.58%
ROICexcg growth 5Y23.07%
ROICexc growth 3Y-39.61%
ROICexc growth 5Y23.43%
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%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 167.36% | ||
| Cap/Sales | 7.05% | ||
| Interest Coverage | 4.56 | ||
| Cash Conversion | 77.33% | ||
| Profit Quality | 33.38% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.68 |
F-Score6
WACC8.8%
ROIC/WACC0.39
Cap/Depr(3y)155.77%
Cap/Depr(5y)133.78%
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)-48.87%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-55.93%
EPS Next Y32.71%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
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-2.32%
Revenue Next 2Y0.65%
Revenue Next 3Y0.95%
Revenue Next 5Y0.89%
EBIT growth 1Y-25.41%
EBIT growth 3Y-39.88%
EBIT growth 5Y22.88%
EBIT Next Year91.72%
EBIT Next 3Y31.6%
EBIT Next 5Y21.59%
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%