ARCELORMITTAL (MT.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:MT - LU1598757687 - Common Stock
45.78 EUR
-0.57 (-1.23%)
We assign a fundamental rating of 3 out of 10 to MT. MT was compared to 43 industry peers in the Metals & Mining industry. MT may be in some trouble as it scores bad on both profitability and health. 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.
- MT had positive earnings in 4 of the past 5 years.
- MT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MT has a Return On Assets (2.62%) which is in line with its industry peers.
- MT has a worse Return On Equity (4.73%) than 65.12% of its industry peers.
- MT has a Return On Invested Capital of 2.71%. This is in the lower half of the industry: MT underperforms 65.12% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MT 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's Profit Margin of 4.23% is in line compared to the rest of the industry. MT outperforms 44.19% of its industry peers.
- In the last couple of years the Profit Margin of MT has declined.
- MT has a worse Operating Margin (5.21%) than 62.79% of its industry peers.
- In the last couple of years the Operating Margin of MT has grown nicely.
- MT's Gross Margin of 10.02% is on the low side compared to the rest of the industry. MT is outperformed by 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
- MT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- MT has a debt to FCF ratio of 323.22. This is a negative value and a sign of low solvency as MT would need 323.22 years to pay back of all of its debts.
- MT's Debt to FCF ratio of 323.22 is on the low side compared to the rest of the industry. MT is outperformed by 65.12% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that MT is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.19, MT perfoms like the industry average, outperforming 55.81% 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
WACC9.08%
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.
- 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.
- MT's Quick ratio of 0.58 is on the low side compared to the rest of the industry. MT is outperformed by 88.37% of its industry peers.
| 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.
- MT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -39.64% yearly.
- 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 25.00% 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 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
- 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
- MT is valuated correctly with a Price/Earnings ratio of 15.31.
- 79.07% of the companies in the same industry are more expensive than MT, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of MT to the average of the S&P500 Index (27.30), we can say MT is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 10.73, 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 90.70% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. MT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
- 72.09% of the companies in the same industry are more expensive than MT, based on the Enterprise Value to EBITDA ratio.
- 65.12% 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 | 902.88 | ||
| 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.
- MT's earnings are expected to grow with 25.00% in the coming years. This may justify a more expensive valuation.
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 Yield of 1.05%.
- MT's Dividend Yield is a higher than the industry average which is at 1.65.
- 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 | 1.05% |
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
- 15.59% of the earnings are spent on dividend by MT. This is a low number and 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 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 15.31 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%.