ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
Europe - FRA:ARRD - LU1598757687 - Common Stock
29.1 EUR
-0.31 (-1.05%)
We assign a fundamental rating of 4 out of 10 to ARRD. ARRD was compared to 38 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 is valued quite cheap, but it does not seem to be growing.
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.
ARRD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARRD had a positive operating cash flow.
1.2 Ratios
ARRD's Return On Assets of 2.52% is in line compared to the rest of the industry. ARRD outperforms 42.11% of its industry peers.
ARRD's Return On Equity of 4.59% is in line compared to the rest of the industry. ARRD outperforms 47.37% of its industry peers.
ARRD has a worse Return On Invested Capital (2.83%) than 63.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARRD is below the industry average of 8.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.59% | ||
| ROIC | 2.83% |
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
ARRD has a Profit Margin (4.11%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ARRD has declined.
ARRD's Operating Margin of 5.46% is on the low side compared to the rest of the industry. ARRD is outperformed by 63.16% of its industry peers.
In the last couple of years the Operating Margin of ARRD has grown nicely.
Looking at the Gross Margin, with a value of 10.09%, ARRD is doing worse than 78.95% of the companies in the same industry.
In the last couple of years the Gross Margin of ARRD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.46% | ||
| PM (TTM) | 4.11% | ||
| GM | 10.09% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARRD is destroying value.
The number of shares outstanding for ARRD has been reduced compared to 1 year ago.
Compared to 5 years ago, ARRD has less shares outstanding
Compared to 1 year ago, ARRD has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ARRD is 15.69, which is on the high side as it means it would take ARRD, 15.69 years of fcf income to pay off all of its debts.
ARRD has a Debt to FCF ratio of 15.69. This is in the lower half of the industry: ARRD underperforms 63.16% of its industry peers.
ARRD has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, ARRD is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.69 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.40 indicates that ARRD should not have too much problems paying its short term obligations.
The Current ratio of ARRD (1.40) is worse than 78.95% of its industry peers.
A Quick Ratio of 0.59 indicates that ARRD may have some problems paying its short term obligations.
ARRD has a Quick ratio of 0.59. This is amonst the worse of the industry: ARRD underperforms 81.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for ARRD have decreased strongly by -13.76% 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 -4.81%.
The Revenue has been decreasing by -2.43% on average over the past years.
EPS 1Y (TTM)-13.76%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%109.52%
Revenue 1Y (TTM)-4.81%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%-1.99%
3.2 Future
The Earnings Per Share is expected to grow by 24.10% on average over the next years. This is a very strong growth
ARRD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y33.64%
EPS Next 2Y27.68%
EPS Next 3Y24.1%
EPS Next 5YN/A
Revenue Next Year-0.97%
Revenue Next 2Y2.68%
Revenue Next 3Y2.9%
Revenue Next 5Y2.46%
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
With a Price/Earnings ratio of 9.80, the valuation of ARRD can be described as very reasonable.
ARRD's Price/Earnings ratio is rather cheap when compared to the industry. ARRD is cheaper than 81.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARRD to the average of the S&P500 Index (27.20), we can say ARRD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.17, the valuation of ARRD can be described as very cheap.
86.84% of the companies in the same industry are more expensive than ARRD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, ARRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 7.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARRD indicates a somewhat cheap valuation: ARRD is cheaper than 65.79% of the companies listed in the same industry.
ARRD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.49 | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
ARRD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARRD's earnings are expected to grow with 24.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y27.68%
EPS Next 3Y24.1%
5. Dividend
5.1 Amount
ARRD has a Yearly Dividend Yield of 1.58%.
ARRD's Dividend Yield is a higher than the industry average which is at 2.77.
Compared to the average S&P500 Dividend Yield of 2.38, ARRD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of ARRD 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
ARRD pays out 16.15% of its income as dividend. This is a sustainable payout ratio.
ARRD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.15%
EPS Next 2Y27.68%
EPS Next 3Y24.1%
FRA:ARRD (9/17/2025, 9:06:56 AM)
29.1
-0.31 (-1.05%)
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
Analysts78.46
Price Target32.12 (10.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend0.42
Dividend Growth(5Y)37.57%
DP16.15%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.19%
Min EPS beat(2)-11.77%
Max EPS beat(2)46.15%
EPS beat(4)2
Avg EPS beat(4)8.46%
Min EPS beat(4)-12.4%
Max EPS beat(4)46.15%
EPS beat(8)5
Avg EPS beat(8)22.72%
EPS beat(12)8
Avg EPS beat(12)48.87%
EPS beat(16)11
Avg EPS beat(16)39.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)-0.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.31%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)-0.12%
Revenue beat(8)0
Avg Revenue beat(8)-4.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.09%
Revenue beat(16)5
Avg Revenue beat(16)-1.39%
PT rev (1m)-0.73%
PT rev (3m)-0.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.32%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 7.17 | ||
| P/S | 0.48 | ||
| P/FCF | 33.49 | ||
| P/OCF | 5.97 | ||
| P/B | 0.54 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)2.97
EY10.21%
EPS(NY)4.06
Fwd EY13.95%
FCF(TTM)0.87
FCFY2.99%
OCF(TTM)4.88
OCFY16.76%
SpS60.22
BVpS54
TBVpS48.7
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.59% | ||
| ROCE | 4.4% | ||
| ROIC | 2.83% | ||
| ROICexc | 3.05% | ||
| ROICexgc | 3.3% | ||
| OM | 5.46% | ||
| PM (TTM) | 4.11% | ||
| GM | 10.09% | ||
| FCFM | 1.44% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.69 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 139.11% | ||
| Cap/Sales | 6.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.03% | ||
| Profit Quality | 35.07% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | N/A |
F-Score6
WACC8.67%
ROIC/WACC0.33
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)-13.76%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%109.52%
EPS Next Y33.64%
EPS Next 2Y27.68%
EPS Next 3Y24.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.81%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%-1.99%
Revenue Next Year-0.97%
Revenue Next 2Y2.68%
Revenue Next 3Y2.9%
Revenue Next 5Y2.46%
EBIT growth 1Y-14.7%
EBIT growth 3Y-39.88%
EBIT growth 5Y22.88%
EBIT Next Year89.21%
EBIT Next 3Y30.64%
EBIT Next 5Y19.34%
FCF growth 1Y-79.97%
FCF growth 3Y-59.84%
FCF growth 5Y-28.87%
OCF growth 1Y-43.22%
OCF growth 3Y-21.18%
OCF growth 5Y-4.24%