ARCELORMITTAL-NY REGISTERED (MT) Stock Fundamental Analysis
NYSE:MT - New York Stock Exchange, Inc. - US03938L2034 - Currency: USD
We assign a fundamental rating of 4 out of 10 to MT. MT was compared to 150 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.
MT had a positive operating cash flow in the past year.
Of the past 5 years MT 4 years were profitable.
MT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MT's Return On Assets of 1.50% is fine compared to the rest of the industry. MT outperforms 61.54% of its industry peers.
MT's Return On Equity of 2.72% is fine compared to the rest of the industry. MT outperforms 62.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.46%, MT is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 2.72% | ||
| ROIC | 3.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MT's Profit Margin of 2.14% is fine compared to the rest of the industry. MT outperforms 64.34% of its industry peers.
In the last couple of years the Profit Margin of MT has declined.
MT has a Operating Margin of 5.83%. This is comparable to the rest of the industry: MT outperforms 55.24% of its industry peers.
In the last couple of years the Operating Margin of MT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 2.14% | ||
| GM | N/A |
OM growth 3Y-35.65%
OM growth 5Y25.94%
PM growth 3Y-52.12%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MT is destroying value.
MT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
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 58.04% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that MT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, MT is in line with its industry, outperforming 50.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | N/A |
ROIC/WACC0.42
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.35 indicates that MT should not have too much problems paying its short term obligations.
The Current ratio of MT (1.35) is worse than 80.42% 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 86.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| 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 -53.39%.
The earnings per share for MT have been decreasing by -41.48% on average. This is quite bad
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)-53.39%
EPS 3Y-41.48%
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
The Earnings Per Share is expected to grow by 37.50% on average over the next years. This is a very strong growth
Based on estimates for the next years, MT will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y52.14%
EPS Next 2Y37.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.45%
Revenue Next 2Y1.77%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
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.
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
A Price/Earnings ratio of 10.37 indicates a reasonable valuation of MT.
MT's Price/Earnings ratio is rather cheap when compared to the industry. MT is cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. MT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.82, 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 92.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 6.82 |
4.2 Price Multiples
92.31% of the companies in the same industry are more expensive than MT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MT is valued a bit cheaper than 64.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.04 | ||
| EV/EBITDA | 4.53 |
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 37.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y37.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MT has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.16, MT pays a better dividend. On top of this MT pays more dividend than 87.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, MT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
MT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
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.
DP29.35%
EPS Next 2Y37.5%
EPS Next 3YN/A
27.8
-0.2 (-0.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners24.29%
Inst Owner Change9.97%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap23.71B
Analysts79.23
Price Target31.64 (13.81%)
Short Float %0.86%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend0.45
Dividend Growth(5Y)N/A
DP29.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.35%
Min EPS beat(2)-34.3%
Max EPS beat(2)-12.4%
EPS beat(4)1
Avg EPS beat(4)-13.46%
Min EPS beat(4)-34.3%
Max EPS beat(4)22.07%
EPS beat(8)5
Avg EPS beat(8)26.38%
EPS beat(12)8
Avg EPS beat(12)45.46%
EPS beat(16)11
Avg EPS beat(16)36.52%
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)1.05%
PT rev (3m)0.67%
EPS NQ rev (1m)-11.99%
EPS NQ rev (3m)-30.6%
EPS NY rev (1m)-7%
EPS NY rev (3m)-7%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-10.45%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 6.82 | ||
| P/S | 0.38 | ||
| P/FCF | 53.04 | ||
| P/OCF | 4.89 | ||
| P/B | 0.48 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 4.53 |
EPS(TTM)2.68
EY9.64%
EPS(NY)4.08
Fwd EY14.67%
FCF(TTM)0.52
FCFY1.89%
OCF(TTM)5.69
OCFY20.47%
SpS73.22
BVpS57.72
TBVpS52.5
PEG (NY)0.2
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 | N/A | ||
| FCFM | 0.72% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-35.65%
OM growth 5Y25.94%
PM growth 3Y-52.12%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 160.3% | ||
| Cap/Sales | 7.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.93% | ||
| Profit Quality | 33.38% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | N/A |
F-Score6
WACC8.32%
ROIC/WACC0.42
Cap/Depr(3y)153.41%
Cap/Depr(5y)132.37%
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)-53.39%
EPS 3Y-41.48%
EPS 5YN/A
EPS Q2Q%-55.93%
EPS Next Y52.14%
EPS Next 2Y37.5%
EPS Next 3YN/A
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 Year0.45%
Revenue Next 2Y1.77%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
EBIT growth 1Y-25.41%
EBIT growth 3Y-39.88%
EBIT growth 5Y22.88%
EBIT Next Year97.14%
EBIT Next 3Y32.8%
EBIT Next 5Y19.22%
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%