ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
FRA:ARRD - Deutsche Boerse Ag - LU1598757687 - Common Stock - Currency: EUR
ARRD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Metals & Mining industry. While ARRD is still in line with the averages on profitability rating, there are concerns on its financial health. ARRD has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
ARRD had positive earnings in the past year.
ARRD had a positive operating cash flow in the past year.
Of the past 5 years ARRD 4 years were profitable.
In the past 5 years ARRD always reported a positive cash flow from operatings.
1.2 Ratios
ARRD's Return On Assets of 1.50% is in line compared to the rest of the industry. ARRD outperforms 51.35% of its industry peers.
ARRD has a Return On Equity of 2.72%. This is comparable to the rest of the industry: ARRD outperforms 51.35% of its industry peers.
With a Return On Invested Capital value of 3.46%, ARRD perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARRD is in line with the industry average of 6.20%.
| 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%, ARRD perfoms like the industry average, outperforming 51.35% of the companies in the same industry.
In the last couple of years the Profit Margin of ARRD has declined.
With a Operating Margin value of 5.83%, ARRD perfoms like the industry average, outperforming 51.35% of the companies in the same industry.
ARRD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 9.80%, ARRD is doing worse than 75.68% of the companies in the same industry.
ARRD's Gross Margin has improved in the last couple of years.
| 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), ARRD is destroying value.
Compared to 1 year ago, ARRD has less shares outstanding
The number of shares outstanding for ARRD has been reduced compared to 5 years ago.
ARRD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that ARRD is in the distress zone and has some risk of bankruptcy.
ARRD has a Altman-Z score (1.69) which is in line with its industry peers.
ARRD has a debt to FCF ratio of 25.87. This is a negative value and a sign of low solvency as ARRD would need 25.87 years to pay back of all of its debts.
With a Debt to FCF ratio value of 25.87, ARRD perfoms like the industry average, outperforming 43.24% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that ARRD is not too dependend on debt financing.
ARRD has a better Debt to Equity ratio (0.18) than 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.39
WACC8.85%
2.3 Liquidity
A Current Ratio of 1.35 indicates that ARRD should not have too much problems paying its short term obligations.
ARRD has a Current ratio of 1.35. This is in the lower half of the industry: ARRD underperforms 72.97% of its industry peers.
A Quick Ratio of 0.59 indicates that ARRD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, ARRD is doing worse than 75.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for ARRD have decreased strongly by -50.00% in the last year.
Measured over the past years, ARRD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -39.64% on average per year.
ARRD shows a decrease in Revenue. In the last year, the revenue decreased by -8.54%.
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)-8.54%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%-9.11%
3.2 Future
Based on estimates for the next years, ARRD 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, ARRD 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-3.05%
Revenue Next 2Y0.4%
Revenue Next 3Y0.64%
Revenue Next 5Y0.89%
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
ARRD is valuated reasonably with a Price/Earnings ratio of 10.62.
Compared to the rest of the industry, the Price/Earnings ratio of ARRD indicates a somewhat cheap valuation: ARRD is cheaper than 75.68% of the companies listed in the same industry.
ARRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.21.
Based on the Price/Forward Earnings ratio of 5.86, the valuation of ARRD can be described as very cheap.
Based on the Price/Forward Earnings ratio, ARRD is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ARRD to the average of the S&P500 Index (20.44), we can say ARRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 5.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRD is valued a bit cheaper than 70.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARRD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.23 | ||
| EV/EBITDA | 4.89 |
4.3 Compensation for Growth
The 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 ARRD's earnings are expected to grow with 23.77% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y31.91%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
ARRD has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.85, ARRD has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, ARRD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of ARRD grows each year by 37.57%, which is quite nice.
Dividend Growth(5Y)37.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
29.35% of the earnings are spent on dividend by ARRD. This is a low number and sustainable payout ratio.
ARRD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.35%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
FRA:ARRD (5/9/2025, 7:00:00 PM)
26.66
+0.09 (+0.34%)
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 Cap22.74B
Analysts78.46
Price Target32.29 (21.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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)-0.46%
PT rev (3m)7.44%
EPS NQ rev (1m)-12.75%
EPS NQ rev (3m)-23.49%
EPS NY rev (1m)-5.71%
EPS NY rev (3m)-4.31%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-2.42%
Revenue NY rev (3m)-3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 5.86 | ||
| P/S | 0.41 | ||
| P/FCF | 57.23 | ||
| P/OCF | 5.27 | ||
| P/B | 0.52 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 4.89 |
EPS(TTM)2.51
EY9.41%
EPS(NY)4.55
Fwd EY17.05%
FCF(TTM)0.47
FCFY1.75%
OCF(TTM)5.06
OCFY18.97%
SpS65.07
BVpS51.3
TBVpS46.66
PEG (NY)0.32
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 | 1.69 |
F-Score6
WACC8.85%
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)-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)-8.54%
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 5Y0.89%
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%