ARCELORMITTAL (MT.AS) Stock Fundamental Analysis
AMS:MT - Euronext Amsterdam - LU1598757687 - Common Stock - Currency: EUR
Overall MT gets a fundamental rating of 4 out of 10. We evaluated MT against 40 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.
MT had a positive operating cash flow in the past year.
Of the past 5 years MT 4 years were profitable.
Each year in the past 5 years MT had a positive operating cash flow.
1.2 Ratios
MT has a Return On Assets of 1.32%. This is comparable to the rest of the industry: MT outperforms 47.50% of its industry peers.
The Return On Equity of MT (2.36%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.14%, MT is in line with its industry, outperforming 47.50% 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 in line with the industry average of 7.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 2.36% | ||
| ROIC | 3.14% |
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
The Profit Margin of MT (1.98%) is comparable to the rest of the industry.
MT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.57%, MT is in line with its industry, outperforming 50.00% of the companies in the same industry.
MT's Operating Margin has improved in the last couple of years.
MT has a Gross Margin of 10.04%. This is in the lower half of the industry: MT underperforms 70.00% of its industry peers.
In the last couple of years the Gross Margin of MT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.57% | ||
| PM (TTM) | 1.98% | ||
| GM | 10.04% |
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
Compared to 5 years ago, MT has less shares outstanding
The debt/assets ratio for MT is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MT is 26.08, which is on the high side as it means it would take MT, 26.08 years of fcf income to pay off all of its debts.
MT has a worse Debt to FCF ratio (26.08) than 62.50% 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.
The Debt to Equity ratio of MT (0.17) is better than 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 26.08 | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC8.58%
2.3 Liquidity
A Current Ratio of 1.35 indicates that MT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, MT is doing worse than 77.50% of the companies in the same industry.
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 (0.58) is worse than 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
MT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
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.
The Revenue has decreased by -7.72% in the past year.
The Revenue has been decreasing by -2.43% on average over the past years.
EPS 1Y (TTM)-50%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-10.34%
Revenue 1Y (TTM)-7.72%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%-9.11%
3.2 Future
MT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.77% yearly.
Based on estimates for the next years, MT will show a small growth in Revenue. The Revenue will grow by 0.81% on average per year.
EPS Next Y32.71%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
EPS Next 5YN/A
Revenue Next Year-3.05%
Revenue Next 2Y0.4%
Revenue Next 3Y0.64%
Revenue Next 5Y0.81%
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 12.07.
Compared to the rest of the industry, the Price/Earnings ratio of MT indicates a somewhat cheap valuation: MT is cheaper than 72.50% of the companies listed in the same industry.
MT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 6.65, 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 95.00% 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 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MT is on the same level as its industry peers.
MT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.76 | ||
| EV/EBITDA | 5.97 |
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 23.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y31.91%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
MT has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.08, MT has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.35, MT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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
32.59% 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.
DP32.59%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
AMS:MT (7/14/2025, 5:35:15 PM)
29.1
-0.35 (-1.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners19.71%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.82B
Analysts79.23
Price Target32.18 (10.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend0.42
Dividend Growth(5Y)37.57%
DP32.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.88%
Min EPS beat(2)-12.4%
Max EPS beat(2)46.15%
EPS beat(4)2
Avg EPS beat(4)4.1%
Min EPS beat(4)-29.23%
Max EPS beat(4)46.15%
EPS beat(8)6
Avg EPS beat(8)27.32%
EPS beat(12)9
Avg EPS beat(12)50.54%
EPS beat(16)12
Avg EPS beat(16)41.31%
Revenue beat(2)0
Avg Revenue beat(2)-5.49%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)-5.3%
Revenue beat(4)0
Avg Revenue beat(4)-4.39%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)-2.12%
Revenue beat(8)0
Avg Revenue beat(8)-4.72%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)5
Avg Revenue beat(16)-1.39%
PT rev (1m)-0.38%
PT rev (3m)-0.81%
EPS NQ rev (1m)4.34%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.71%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.48 | ||
| P/FCF | 62.76 | ||
| P/OCF | 6.31 | ||
| P/B | 0.57 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 5.97 |
EPS(TTM)2.41
EY8.28%
EPS(NY)4.38
Fwd EY15.05%
FCF(TTM)0.46
FCFY1.59%
OCF(TTM)4.61
OCFY15.86%
SpS61.18
BVpS51.39
TBVpS46.78
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 2.36% | ||
| ROCE | 4.89% | ||
| ROIC | 3.14% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 3.66% | ||
| OM | 5.57% | ||
| PM (TTM) | 1.98% | ||
| GM | 10.04% | ||
| FCFM | 0.76% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 26.08 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 156.31% | ||
| Cap/Sales | 6.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.11% | ||
| Profit Quality | 38.31% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | N/A |
F-Score6
WACC8.58%
ROIC/WACC0.37
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)-50%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-10.34%
EPS Next Y32.71%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.72%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%-9.11%
Revenue Next Year-3.05%
Revenue Next 2Y0.4%
Revenue Next 3Y0.64%
Revenue Next 5Y0.81%
EBIT growth 1Y-28.72%
EBIT growth 3Y-39.88%
EBIT growth 5Y22.88%
EBIT Next Year89.21%
EBIT Next 3Y30.64%
EBIT Next 5Y21.19%
FCF growth 1Y-91.18%
FCF growth 3Y-59.84%
FCF growth 5Y-28.87%
OCF growth 1Y-49.57%
OCF growth 3Y-21.18%
OCF growth 5Y-4.24%