ARCELORMITTAL (MT.AS)
LU1598757687 - Common Stock
Taking everything into account, MT scores 4 out of 10 in our fundamental rating. MT was compared to 39 industry peers in the Metals & Mining industry. MT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MT has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
MT had positive earnings in the past year.
In the past year MT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MT reported negative net income in multiple years.
MT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MT's Return On Assets of -1.33% is on the low side compared to the rest of the industry. MT is outperformed by 61.11% of its industry peers.
With a Return On Equity value of -2.32%, MT is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
MT has a Return On Invested Capital (3.98%) which is in line with its industry peers.
MT had an Average Return On Invested Capital over the past 3 years of 13.03%. This is significantly above the industry average of 6.18%.
The last Return On Invested Capital (3.98%) for MT is well below the 3 year average (13.03%), which needs to be investigated, but indicates that MT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.33% | ||
| ROE | -2.32% | ||
| ROIC | 3.98% |
ROA(3y)9.11%
ROA(5y)4.73%
ROE(3y)16.55%
ROE(5y)8.28%
ROIC(3y)13.03%
ROIC(5y)8.27%
1.3 Margins
MT's Profit Margin has declined in the last couple of years.
MT has a Operating Margin of 5.55%. This is comparable to the rest of the industry: MT outperforms 52.78% of its industry peers.
In the last couple of years the Operating Margin of MT has declined.
MT does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.55% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y94.6%
OM growth 5Y-4.09%
PM growth 3YN/A
PM growth 5Y-27.61%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MT has more shares outstanding
MT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MT has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MT is 11.37, which is on the high side as it means it would take MT, 11.37 years of fcf income to pay off all of its debts.
MT has a better Debt to FCF ratio (11.37) than 69.44% of its industry peers.
MT has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.17, MT belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 11.37 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC8.91%
2.3 Liquidity
MT has a Current Ratio of 1.46. 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 worse Current ratio (1.46) than 69.44% of its industry peers.
MT has a Quick Ratio of 1.46. 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 (0.59) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
MT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.77%.
The Earnings Per Share has been decreasing by -3.52% on average over the past years.
Looking at the last year, MT shows a very negative growth in Revenue. The Revenue has decreased by -11.80% in the last year.
Measured over the past years, MT shows a decrease in Revenue. The Revenue has been decreasing by -2.13% on average per year.
EPS 1Y (TTM)-43.77%
EPS 3YN/A
EPS 5Y-3.52%
EPS Q2Q%-66.36%
Revenue 1Y (TTM)-11.8%
Revenue growth 3Y8.62%
Revenue growth 5Y-2.13%
Sales Q2Q%-8.55%
3.2 Future
MT is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.08% yearly.
Based on estimates for the next years, MT will show a small growth in Revenue. The Revenue will grow by 0.77% on average per year.
EPS Next Y-45.07%
EPS Next 2Y-12.68%
EPS Next 3Y-4.08%
EPS Next 5YN/A
Revenue Next Year-10.22%
Revenue Next 2Y-4.68%
Revenue Next 3Y-2.18%
Revenue Next 5Y0.77%
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 stable.
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 cheaply with a Price/Earnings ratio of 6.66.
88.89% of the companies in the same industry are more expensive than MT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.28, MT is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.08, the valuation of MT can be described as very cheap.
MT's Price/Forward Earnings ratio is rather cheap when compared to the industry. MT is cheaper than 97.22% of the companies in the same industry.
MT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.66 | ||
| Fwd PE | 5.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MT indicates a rather cheap valuation: MT is cheaper than 80.56% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.19 | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
MT's earnings are expected to decrease with -4.08% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.68%
EPS Next 3Y-4.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, MT has a reasonable but not impressive dividend return.
MT's Dividend Yield is comparable with the industry average which is at 3.85.
MT's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of MT are negative and hence is the payout ratio. MT will probably not be able to sustain this dividend level.
DP-31.04%
EPS Next 2Y-12.68%
EPS Next 3Y-4.08%
ARCELORMITTAL
AMS:MT (1/14/2025, 7:00:00 PM)
21.84
+0.09 (+0.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners24.29%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.63B
Analysts80
Price Target30.06 (37.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Dividend Growth(5Y)N/A
DP-31.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.76%
Min EPS beat(2)-34.3%
Max EPS beat(2)-29.23%
EPS beat(4)2
Avg EPS beat(4)27.87%
Min EPS beat(4)-34.3%
Max EPS beat(4)152.94%
EPS beat(8)6
Avg EPS beat(8)67.94%
EPS beat(12)9
Avg EPS beat(12)46.92%
EPS beat(16)12
Avg EPS beat(16)40.75%
Revenue beat(2)0
Avg Revenue beat(2)-3.28%
Min Revenue beat(2)-4.44%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-4.55%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)-2.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.18%
Revenue beat(12)5
Avg Revenue beat(12)0%
Revenue beat(16)5
Avg Revenue beat(16)-1.81%
PT rev (1m)0.13%
PT rev (3m)0.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.3%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.66 | ||
| Fwd PE | 5.08 | ||
| P/S | 0.3 | ||
| P/FCF | 19.19 | ||
| P/OCF | 3.33 | ||
| P/B | 0.36 | ||
| P/tB | 0.39 | ||
| EV/EBITDA | 4.03 |
EPS(TTM)3.28
EY15.02%
EPS(NY)4.3
Fwd EY19.69%
FCF(TTM)1.14
FCFY5.21%
OCF(TTM)6.57
OCFY30.07%
SpS71.61
BVpS61.3
TBVpS55.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.33% | ||
| ROE | -2.32% | ||
| ROCE | 4.8% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 4.62% | ||
| OM | 5.55% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 1.59% |
ROA(3y)9.11%
ROA(5y)4.73%
ROE(3y)16.55%
ROE(5y)8.28%
ROIC(3y)13.03%
ROIC(5y)8.27%
ROICexc(3y)14.34%
ROICexc(5y)9.1%
ROICexgc(3y)15.48%
ROICexgc(5y)9.83%
ROCE(3y)15.9%
ROCE(5y)10.1%
ROICexcg growth 3Y101.22%
ROICexcg growth 5Y-5.32%
ROICexc growth 3Y101.11%
ROICexc growth 5Y-5.21%
OM growth 3Y94.6%
OM growth 5Y-4.09%
PM growth 3YN/A
PM growth 5Y-27.61%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 11.37 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 170.22% | ||
| Cap/Sales | 7.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | N/A |
F-Score3
WACC8.91%
ROIC/WACC0.45
Cap/Depr(3y)139.72%
Cap/Depr(5y)123.61%
Cap/Sales(3y)5.01%
Cap/Sales(5y)4.93%
Profit Quality(3y)149.49%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.77%
EPS 3YN/A
EPS 5Y-3.52%
EPS Q2Q%-66.36%
EPS Next Y-45.07%
EPS Next 2Y-12.68%
EPS Next 3Y-4.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.8%
Revenue growth 3Y8.62%
Revenue growth 5Y-2.13%
Sales Q2Q%-8.55%
Revenue Next Year-10.22%
Revenue Next 2Y-4.68%
Revenue Next 3Y-2.18%
Revenue Next 5Y0.77%
EBIT growth 1Y-4.93%
EBIT growth 3Y111.38%
EBIT growth 5Y-6.13%
EBIT Next Year53.67%
EBIT Next 3Y23.48%
EBIT Next 5Y15.93%
FCF growth 1Y-86.99%
FCF growth 3Y22.73%
FCF growth 5Y28.04%
OCF growth 1Y-46.73%
OCF growth 3Y23.29%
OCF growth 5Y12.8%