ARCELORMITTAL (MT.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:MT - LU1598757687 - Common Stock
46 EUR
+0.39 (+0.86%)
Overall MT gets a fundamental rating of 3 out of 10. We evaluated MT against 45 industry peers in the Metals & Mining industry. While MT is still in line with the averages on profitability rating, there are concerns on its financial health. MT has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- MT had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years MT had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.62%, MT perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- MT has a worse Return On Equity (4.73%) than 60.00% of its industry peers.
- MT has a worse Return On Invested Capital (2.71%) than 60.00% 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's Profit Margin of 4.23% is in line compared to the rest of the industry. MT outperforms 51.11% of its industry peers.
- MT's Profit Margin has declined in the last couple of years.
- MT's Operating Margin of 5.21% is in line compared to the rest of the industry. MT outperforms 44.44% of its industry peers.
- MT's Operating Margin has improved in the last couple of years.
- The Gross Margin of MT (10.02%) is worse than 84.44% of its industry peers.
- MT's Gross Margin has improved in the last couple of years.
| 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), 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.
- The Debt to FCF ratio of MT (323.22) is worse than 60.00% 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
WACC8.92%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that MT should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.39, MT is doing worse than 82.22% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.58, MT is doing worse than 82.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The earnings per share for MT have decreased by -2.78% in the last year.
- The earnings per share for MT have been decreasing by -39.64% on average. This is quite bad
- The Revenue has decreased by -1.90% in the past year.
- MT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.43% yearly.
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
- Based on estimates for the next years, MT will show a very strong growth in Earnings Per Share. The EPS will grow by 27.53% on average per year.
- Based on estimates for the next years, MT will show a small growth in Revenue. The Revenue will grow by 2.09% on average per year.
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.
- 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
- The Price/Earnings ratio is 15.54, which indicates a correct valuation of MT.
- MT's Price/Earnings ratio is rather cheap when compared to the industry. MT is cheaper than 84.44% of the companies in the same industry.
- MT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 10.78 indicates a reasonable valuation of MT.
- Based on the Price/Forward Earnings ratio, MT is valued cheaper than 93.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MT to the average of the S&P500 Index (25.98), we can say MT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
- MT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MT is cheaper than 73.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MT 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 | 917.29 | ||
| EV/EBITDA | 8.31 |
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)0.6
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.
- Compared to an average industry Dividend Yield of 1.67, MT has a dividend in line with its industry peers.
- 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 15.54 and the Price/Book (PB) ratio is 0.77.
Is the dividend of ARCELORMITTAL sustainable?
The dividend rating of ARCELORMITTAL (MT.AS) is 3 / 10 and the dividend payout ratio is 15.59%.