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 40 industry peers in the Metals & Mining industry. There are concerns on the financial health of ARRD while its profitability can be described as average. ARRD is valued quite cheap, 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's Return On Assets of 1.32% is in line compared to the rest of the industry. ARRD outperforms 50.00% of its industry peers.
ARRD has a Return On Equity of 2.36%. This is comparable to the rest of the industry: ARRD outperforms 50.00% of its industry peers.
ARRD has a Return On Invested Capital of 3.14%. This is comparable to the rest of the industry: ARRD outperforms 50.00% of its industry peers.
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 7.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 2.36% | ||
| ROIC | 3.14% |
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 1.98%. This is comparable to the rest of the industry: ARRD outperforms 52.50% of its industry peers.
ARRD's Profit Margin has declined in the last couple of years.
ARRD has a Operating Margin (5.57%) which is comparable to the rest of the industry.
ARRD's Operating Margin has improved in the last couple of years.
ARRD's Gross Margin of 10.04% is on the low side compared to the rest of the industry. ARRD is outperformed by 67.50% of its industry peers.
ARRD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.57% | ||
| PM (TTM) | 1.98% | ||
| GM | 10.04% |
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
The debt/assets ratio for ARRD is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ARRD is 26.08, which is on the high side as it means it would take ARRD, 26.08 years of fcf income to pay off all of its debts.
ARRD has a Debt to FCF ratio of 26.08. This is in the lower half of the industry: ARRD underperforms 60.00% of its industry peers.
ARRD has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ARRD (0.17) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 26.08 | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC8.58%
2.3 Liquidity
A Current Ratio of 1.35 indicates that ARRD should not have too much problems paying its short term obligations.
The Current ratio of ARRD (1.35) is worse than 75.00% of its industry peers.
ARRD has a Quick Ratio of 1.35. 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 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for ARRD have decreased strongly by -50.00% in the last year.
The earnings per share for ARRD have been decreasing by -39.64% on average. This is quite bad
ARRD shows a decrease in Revenue. In the last year, the revenue decreased by -7.72%.
The Revenue has been decreasing by -2.43% on average over the past years.
EPS 1Y (TTM)-50%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-10.34%
Revenue 1Y (TTM)-7.72%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%-9.11%
3.2 Future
ARRD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.77% yearly.
Based on estimates for the next years, ARRD will show a small growth in Revenue. The Revenue will grow by 0.81% on average per year.
EPS Next Y32.71%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
EPS Next 5YN/A
Revenue Next Year-3.05%
Revenue Next 2Y0.4%
Revenue Next 3Y0.64%
Revenue Next 5Y0.81%
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
A Price/Earnings ratio of 12.08 indicates a correct valuation of ARRD.
Based on the Price/Earnings ratio, ARRD is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
ARRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 6.65, which indicates a rather cheap valuation of ARRD.
97.50% of the companies in the same industry are more expensive than ARRD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARRD to the average of the S&P500 Index (35.19), we can say ARRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRD is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARRD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.78 | ||
| EV/EBITDA | 5.97 |
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 23.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y31.91%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, ARRD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.08, ARRD has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.35, ARRD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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
32.59% 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.
DP32.59%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
FRA:ARRD (7/14/2025, 5:23:33 PM)
29.11
-0.33 (-1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners19.71%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.83B
Analysts79.23
Price Target32.21 (10.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend0.42
Dividend Growth(5Y)37.57%
DP32.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.88%
Min EPS beat(2)-12.4%
Max EPS beat(2)46.15%
EPS beat(4)2
Avg EPS beat(4)4.1%
Min EPS beat(4)-29.23%
Max EPS beat(4)46.15%
EPS beat(8)6
Avg EPS beat(8)27.32%
EPS beat(12)9
Avg EPS beat(12)50.54%
EPS beat(16)12
Avg EPS beat(16)41.31%
Revenue beat(2)0
Avg Revenue beat(2)-5.49%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)-5.3%
Revenue beat(4)0
Avg Revenue beat(4)-4.39%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)-2.12%
Revenue beat(8)0
Avg Revenue beat(8)-4.72%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)5
Avg Revenue beat(16)-1.39%
PT rev (1m)-0.27%
PT rev (3m)-0.7%
EPS NQ rev (1m)4.34%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.71%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.48 | ||
| P/FCF | 62.78 | ||
| P/OCF | 6.31 | ||
| P/B | 0.57 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 5.97 |
EPS(TTM)2.41
EY8.28%
EPS(NY)4.38
Fwd EY15.04%
FCF(TTM)0.46
FCFY1.59%
OCF(TTM)4.61
OCFY15.85%
SpS61.18
BVpS51.39
TBVpS46.78
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 2.36% | ||
| ROCE | 4.89% | ||
| ROIC | 3.14% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 3.66% | ||
| OM | 5.57% | ||
| PM (TTM) | 1.98% | ||
| GM | 10.04% | ||
| FCFM | 0.76% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 26.08 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 156.31% | ||
| Cap/Sales | 6.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.11% | ||
| Profit Quality | 38.31% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | N/A |
F-Score6
WACC8.58%
ROIC/WACC0.37
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)-50%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-10.34%
EPS Next Y32.71%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.72%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%-9.11%
Revenue Next Year-3.05%
Revenue Next 2Y0.4%
Revenue Next 3Y0.64%
Revenue Next 5Y0.81%
EBIT growth 1Y-28.72%
EBIT growth 3Y-39.88%
EBIT growth 5Y22.88%
EBIT Next Year89.21%
EBIT Next 3Y30.64%
EBIT Next 5Y21.19%
FCF growth 1Y-91.18%
FCF growth 3Y-59.84%
FCF growth 5Y-28.87%
OCF growth 1Y-49.57%
OCF growth 3Y-21.18%
OCF growth 5Y-4.24%