ARCELORMITTAL (ARRD.DE) Stock Fundamental Analysis
FRA:ARRD - Deutsche Boerse Ag - LU1598757687 - Common Stock - Currency: EUR
Taking everything into account, ARRD scores 4 out of 10 in our fundamental rating. ARRD was compared to 36 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.
Of the past 5 years ARRD 4 years were profitable.
Each year in the past 5 years ARRD had a positive operating cash flow.
1.2 Ratios
ARRD has a Return On Assets (1.32%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.36%, ARRD is in line with its industry, outperforming 44.44% of the companies in the same industry.
With a Return On Invested Capital value of 3.14%, ARRD perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
ARRD had an Average Return On Invested Capital over the past 3 years of 5.89%. This is in line with the industry average of 7.09%.
| 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
With a Profit Margin value of 1.98%, ARRD perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
ARRD's Profit Margin has declined in the last couple of years.
ARRD's Operating Margin of 5.57% is in line compared to the rest of the industry. ARRD outperforms 44.44% of its industry peers.
In the last couple of years the Operating Margin of ARRD has grown nicely.
ARRD's Gross Margin of 10.04% is on the low side compared to the rest of the industry. ARRD is outperformed by 77.78% of its industry peers.
ARRD's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARRD is destroying value.
ARRD has less shares outstanding than it did 1 year ago.
ARRD has less shares outstanding than it did 5 years ago.
ARRD has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of ARRD is 26.08, which is on the high side as it means it would take ARRD, 26.08 years of fcf income to pay off all of its debts.
ARRD has a Debt to FCF ratio of 26.08. This is in the lower half of the industry: ARRD underperforms 63.89% of its industry peers.
ARRD 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 ARRD (0.17) is better than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 26.08 | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC8.51%
2.3 Liquidity
ARRD has a Current Ratio of 1.35. This is a normal value and indicates that ARRD is financially healthy and should not expect problems in meeting its short term obligations.
ARRD's Current ratio of 1.35 is on the low side compared to the rest of the industry. ARRD is outperformed by 83.33% of its industry peers.
ARRD has a Quick Ratio of 1.35. This is a bad value and indicates that ARRD is not financially healthy enough and could expect problems in meeting its short term obligations.
ARRD has a Quick ratio of 0.58. This is amonst the worse of the industry: ARRD underperforms 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
ARRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
The earnings per share for ARRD have been decreasing by -39.64% on average. This is quite bad
ARRD shows a decrease in Revenue. In the last year, the revenue decreased by -7.72%.
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
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.
The Revenue is expected to grow by 0.81% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 10.91, which indicates a very decent valuation of ARRD.
Compared to the rest of the industry, the Price/Earnings ratio of ARRD indicates a somewhat cheap valuation: ARRD is cheaper than 72.22% 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 26.57.
ARRD is valuated cheaply with a Price/Forward Earnings ratio of 6.02.
91.67% of the companies in the same industry are more expensive than ARRD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARRD to the average of the S&P500 Index (22.41), we can say ARRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 6.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARRD is valued a bit cheaper than 66.67% of the companies in the same industry.
ARRD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.87 | ||
| EV/EBITDA | 5.49 |
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.
ARRD's earnings are expected to grow with 23.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y31.91%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
ARRD has a Yearly Dividend Yield of 1.79%.
Compared to an average industry Dividend Yield of 3.20, ARRD has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, ARRD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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
32.59% 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.
DP32.59%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
FRA:ARRD (6/17/2025, 5:12:11 PM)
26.62
-0.19 (-0.71%)
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 Cap22.70B
Analysts79.23
Price Target32.3 (21.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.43
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)0.04%
PT rev (3m)2.37%
EPS NQ rev (1m)3.19%
EPS NQ rev (3m)17.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 6.02 | ||
| P/S | 0.43 | ||
| P/FCF | 56.87 | ||
| P/OCF | 5.71 | ||
| P/B | 0.51 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 5.49 |
EPS(TTM)2.44
EY9.17%
EPS(NY)4.42
Fwd EY16.6%
FCF(TTM)0.47
FCFY1.76%
OCF(TTM)4.66
OCFY17.5%
SpS61.76
BVpS51.88
TBVpS47.22
PEG (NY)0.33
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
WACC8.51%
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%