ARCELORMITTAL (MT.AS) Stock Fundamental Analysis
AMS:MT - Euronext Amsterdam - LU1598757687 - Common Stock - Currency: EUR
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. While MT is still in line with the averages on profitability rating, there are concerns on its financial health. MT is cheap, but on the other hand it scores bad on growth.
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.
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 (1.50%) which is in line with its industry peers.
With a Return On Equity value of 2.72%, MT perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
MT has a Return On Invested Capital (3.46%) which is in line with its industry peers.
MT had an Average Return On Invested Capital over the past 3 years of 5.89%. This is in line with the industry average of 6.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 2.72% | ||
| ROIC | 3.46% |
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
With a Profit Margin value of 2.14%, MT perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Profit Margin of MT has declined.
MT has a Operating Margin (5.83%) which is in line with its industry peers.
MT's Operating Margin has improved in the last couple of years.
MT has a Gross Margin of 9.80%. This is amonst the worse of the industry: MT underperforms 82.05% of its industry peers.
In the last couple of years the Gross Margin of MT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 2.14% | ||
| GM | 9.8% |
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.
Compared to 1 year ago, MT has less shares outstanding
The number of shares outstanding for MT has been reduced compared to 5 years ago.
MT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that MT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.68, MT is in line with its industry, outperforming 43.59% of the companies in the same industry.
MT has a debt to FCF ratio of 25.87. This is a negative value and a sign of low solvency as MT would need 25.87 years to pay back of all of its debts.
With a Debt to FCF ratio value of 25.87, MT perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that MT is not too dependend on debt financing.
MT has a better Debt to Equity ratio (0.18) than 74.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.39
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.35 indicates that MT should not have too much problems paying its short term obligations.
MT has a worse Current ratio (1.35) than 71.79% of its industry peers.
MT has a Quick Ratio of 1.35. 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 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for MT have decreased strongly by -48.87% in the last year.
Measured over the past years, MT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -39.64% on average per year.
MT shows a decrease in Revenue. In the last year, the revenue decreased by -8.54%.
MT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.43% yearly.
EPS 1Y (TTM)-48.87%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-55.93%
Revenue 1Y (TTM)-8.54%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%1.11%
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 23.77% on average per year.
Based on estimates for the next years, MT will show a small growth in Revenue. The Revenue will grow by 0.89% on average per year.
EPS Next Y32.71%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y1.45%
Revenue Next 3Y1.38%
Revenue Next 5Y0.89%
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
The Price/Earnings ratio is 9.90, which indicates a very decent valuation of MT.
Compared to the rest of the industry, the Price/Earnings ratio of MT indicates a somewhat cheap valuation: MT is cheaper than 76.92% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.92. MT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.48, the valuation of MT can be described as very cheap.
Based on the Price/Forward Earnings ratio, MT is valued cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MT to the average of the S&P500 Index (21.65), we can say MT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 7.48 |
4.2 Price Multiples
82.05% of the companies in the same industry are more expensive than MT, based on the Enterprise Value to EBITDA ratio.
MT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.64 | ||
| EV/EBITDA | 4.76 |
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 23.77% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y31.91%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.03%, MT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.76, MT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, MT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 29.35% 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.
DP29.35%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
AMS:MT (4/24/2025, 7:00:00 PM)
25.55
+0.08 (+0.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners20.82%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.79B
Analysts78.46
Price Target32.44 (26.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.43
Dividend Growth(5Y)37.57%
DP29.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-12.4%
Max EPS beat(2)11.87%
EPS beat(4)2
Avg EPS beat(4)-1.92%
Min EPS beat(4)-29.23%
Max EPS beat(4)22.07%
EPS beat(8)6
Avg EPS beat(8)32.15%
EPS beat(12)9
Avg EPS beat(12)49.3%
EPS beat(16)12
Avg EPS beat(16)39.4%
Revenue beat(2)0
Avg Revenue beat(2)-3.71%
Min Revenue beat(2)-5.3%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-5.3%
Max Revenue beat(4)-2.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.96%
Revenue beat(12)4
Avg Revenue beat(12)-0.46%
Revenue beat(16)5
Avg Revenue beat(16)-1.32%
PT rev (1m)2.85%
PT rev (3m)7.9%
EPS NQ rev (1m)-22.98%
EPS NQ rev (3m)-32.66%
EPS NY rev (1m)-4.87%
EPS NY rev (3m)-11.01%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 7.48 | ||
| P/S | 0.4 | ||
| P/FCF | 55.64 | ||
| P/OCF | 5.13 | ||
| P/B | 0.51 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)2.58
EY10.1%
EPS(NY)3.42
Fwd EY13.38%
FCF(TTM)0.46
FCFY1.8%
OCF(TTM)4.98
OCFY19.51%
SpS64.14
BVpS50.56
TBVpS45.99
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 2.72% | ||
| ROCE | 5.39% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 4.13% | ||
| OM | 5.83% | ||
| PM (TTM) | 2.14% | ||
| GM | 9.8% | ||
| FCFM | 0.72% |
ROA(3y)4.11%
ROA(5y)5.59%
ROE(3y)7.31%
ROE(5y)10.09%
ROIC(3y)5.89%
ROIC(5y)6.85%
ROICexc(3y)6.67%
ROICexc(5y)7.53%
ROICexgc(3y)7.22%
ROICexgc(5y)8.13%
ROCE(3y)9.27%
ROCE(5y)10.79%
ROICexcg growth 3Y-39.58%
ROICexcg growth 5Y23.07%
ROICexc growth 3Y-39.61%
ROICexc growth 5Y23.43%
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%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 167.36% | ||
| Cap/Sales | 7.05% | ||
| Interest Coverage | 4.56 | ||
| Cash Conversion | 77.33% | ||
| Profit Quality | 33.38% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.68 |
F-Score6
WACC8.79%
ROIC/WACC0.39
Cap/Depr(3y)155.77%
Cap/Depr(5y)133.78%
Cap/Sales(3y)6.05%
Cap/Sales(5y)5.33%
Profit Quality(3y)145.24%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.87%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-55.93%
EPS Next Y32.71%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.54%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%1.11%
Revenue Next Year-0.65%
Revenue Next 2Y1.45%
Revenue Next 3Y1.38%
Revenue Next 5Y0.89%
EBIT growth 1Y-25.41%
EBIT growth 3Y-39.88%
EBIT growth 5Y22.88%
EBIT Next Year91.72%
EBIT Next 3Y31.6%
EBIT Next 5Y21.59%
FCF growth 1Y-85.26%
FCF growth 3Y-59.84%
FCF growth 5Y-28.87%
OCF growth 1Y-36.53%
OCF growth 3Y-21.18%
OCF growth 5Y-4.24%