ARCELORMITTAL (MT.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:MT - LU1598757687 - Common Stock
47.65 EUR
+0.87 (+1.86%)
We assign a fundamental rating of 3 out of 10 to MT. MT was compared to 45 industry peers in the Metals & Mining industry. MT has a medium profitability rating, but doesn't score so well on its financial health evaluation. MT 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 MT was profitable.
- In the past year MT had a positive cash flow from operations.
- Of the past 5 years MT 4 years were profitable.
- In the past 5 years MT always reported a positive cash flow from operatings.
1.2 Ratios
- MT has a Return On Assets (2.62%) which is comparable to the rest of the industry.
- The Return On Equity of MT (4.73%) is worse than 62.22% of its industry peers.
- MT's Return On Invested Capital of 2.71% is on the low side compared to the rest of the industry. MT is outperformed by 62.22% of its industry peers.
- MT 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
- MT 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 MT has declined.
- MT's Operating Margin of 5.21% is in line compared to the rest of the industry. MT outperforms 42.22% of its industry peers.
- MT's Operating Margin has improved in the last couple of years.
- MT has a Gross Margin of 10.02%. This is amonst the worse of the industry: MT underperforms 86.67% of its industry peers.
- In the last couple of years the Gross Margin of MT 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 MT is destroying value.
- The number of shares outstanding for MT has been reduced compared to 1 year ago.
- MT has less shares outstanding than it did 5 years ago.
- MT has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of MT is 323.22, which is on the high side as it means it would take MT, 323.22 years of fcf income to pay off all of its debts.
- MT has a worse Debt to FCF ratio (323.22) than 62.22% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that MT is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.19, MT is in line with its industry, outperforming 55.56% 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
- MT has a Current Ratio of 1.39. This is a normal value and indicates that MT is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.39, MT is not doing good in the industry: 84.44% of the companies in the same industry are doing better.
- A Quick Ratio of 0.58 indicates that MT may have some problems paying its short term obligations.
- The Quick ratio of MT (0.58) is worse than 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- MT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.78%.
- The earnings per share for MT have been decreasing by -39.64% on average. This is quite bad
- Looking at the last year, MT shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last 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
- MT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.53% yearly.
- 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
- 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 16.32, the valuation of MT can be described as correct.
- MT's Price/Earnings ratio is a bit cheaper when compared to the industry. MT is cheaper than 80.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MT to the average of the S&P500 Index (28.60), we can say MT is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 11.30, the valuation of MT can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, MT is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. MT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
- 71.11% of the companies in the same industry are more expensive than MT, based on the Enterprise Value to EBITDA ratio.
- 62.22% of the companies in the same industry are cheaper than MT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 961.27 | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
- MT'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 MT's earnings are expected to grow with 27.53% in the coming years.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y31.04%
EPS Next 3Y27.53%
5. Dividend
5.1 Amount
- MT has a yearly dividend return of 0.96%, which is pretty low.
- MT's Dividend Yield is comparable with the industry average which is at 1.67.
- With a Dividend Yield of 0.96, MT 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 MT 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
- MT pays out 15.59% of its income as dividend. This is a sustainable payout ratio.
- The dividend of MT 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 / MT.AS FAQ
What is the fundamental rating for MT stock?
ChartMill assigns a fundamental rating of 3 / 10 to MT.AS.
What is the valuation status for MT stock?
ChartMill assigns a valuation rating of 6 / 10 to ARCELORMITTAL (MT.AS). This can be considered as Fairly Valued.
How profitable is ARCELORMITTAL (MT.AS) stock?
ARCELORMITTAL (MT.AS) has a profitability rating of 4 / 10.
What are the PE and PB ratios of ARCELORMITTAL (MT.AS) stock?
The Price/Earnings (PE) ratio for ARCELORMITTAL (MT.AS) is 16.32 and the Price/Book (PB) ratio is 0.81.
Is the dividend of ARCELORMITTAL sustainable?
The dividend rating of ARCELORMITTAL (MT.AS) is 3 / 10 and the dividend payout ratio is 15.59%.