ARCELORMITTAL (MT.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:MT - LU1598757687 - Common Stock
45.97 EUR
-0.38 (-0.82%)
Overall MT gets a fundamental rating of 3 out of 10. We evaluated MT against 43 industry peers in the Metals & Mining industry. MT may be in some trouble as it scores bad on both profitability and health. MT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- MT had positive earnings in the past year.
- MT had a positive operating cash flow in the past year.
- 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's Return On Assets of 2.62% is in line compared to the rest of the industry. MT outperforms 41.86% of its industry peers.
- MT's Return On Equity of 4.73% is on the low side compared to the rest of the industry. MT is outperformed by 65.12% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.71%, MT is doing worse than 65.12% of the companies in the same industry.
- MT had an Average Return On Invested Capital over the past 3 years of 5.89%. This is below the industry average of 8.16%.
| 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 in line with its industry peers.
- MT's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 5.21%, MT is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
- MT's Operating Margin has improved in the last couple of years.
- MT has a worse Gross Margin (10.02%) than 86.05% 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.
- Compared to 5 years ago, MT has less shares outstanding
- Compared to 1 year ago, MT has a worse debt to assets ratio.
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 Debt to FCF ratio of 323.22. This is in the lower half of the industry: MT underperforms 65.12% of its industry peers.
- MT has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of MT (0.19) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 323.22 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC9.09%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that MT should not have too much problems paying its short term obligations.
- MT has a Current ratio of 1.39. This is amonst the worse of the industry: MT underperforms 86.05% of its industry peers.
- MT has a Quick Ratio of 1.39. This is a bad value and indicates that MT is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of MT (0.58) is worse than 88.37% 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
- MT shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
- Measured over the past years, MT 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
- The Earnings Per Share is expected to grow by 25.00% 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 Y22.51%
EPS Next 2Y30.34%
EPS Next 3Y25%
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.
- 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
- MT is valuated correctly with a Price/Earnings ratio of 15.37.
- Compared to the rest of the industry, the Price/Earnings ratio of MT indicates a somewhat cheap valuation: MT is cheaper than 79.07% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of MT to the average of the S&P500 Index (27.21), we can say MT is valued slightly cheaper.
- The Price/Forward Earnings ratio is 10.77, which indicates a very decent valuation of MT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MT indicates a rather cheap valuation: MT is cheaper than 90.70% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, MT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MT is valued a bit cheaper than 72.09% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MT is valued a bit more expensive than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 906.62 | ||
| EV/EBITDA | 8.34 |
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 25.00% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y30.34%
EPS Next 3Y25%
5. Dividend
5.1 Amount
- MT has a yearly dividend return of 0.96%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.65, MT pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, MT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
- On average, the dividend of MT 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 MT. This is a low number and sustainable payout ratio.
- MT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.59%
EPS Next 2Y30.34%
EPS Next 3Y25%
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 3 / 10.
What are the PE and PB ratios of ARCELORMITTAL (MT.AS) stock?
The Price/Earnings (PE) ratio for ARCELORMITTAL (MT.AS) is 15.37 and the Price/Book (PB) ratio is 0.76.
Is the dividend of ARCELORMITTAL sustainable?
The dividend rating of ARCELORMITTAL (MT.AS) is 4 / 10 and the dividend payout ratio is 15.59%.