ARCELORMITTAL (MT.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:MT - LU1598757687 - Common Stock
45.74 EUR
-1.04 (-2.22%)
We assign a fundamental rating of 3 out of 10 to MT. MT was compared to 45 industry peers in the Metals & Mining industry. There are concerns on the financial health of MT while its profitability can be described as average. MT has a valuation in line with the averages, but it does not seem to be growing.
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.
- MT had positive earnings in 4 of the past 5 years.
- In the past 5 years MT always reported a positive cash flow from operatings.
1.2 Ratios
- MT has a Return On Assets (2.62%) which is in line with its industry peers.
- MT has a worse Return On Equity (4.73%) than 62.22% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.71%, MT is doing worse than 62.22% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for MT is below the industry average of 8.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 4.73% | ||
| ROIC | 2.71% |
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 4.23%, MT perfoms like the industry average, outperforming 48.89% of the companies in the same industry.
- In the last couple of years the Profit Margin of MT has declined.
- The Operating Margin of MT (5.21%) is comparable to the rest of the industry.
- MT's Operating Margin has improved in the last couple of years.
- MT has a worse Gross Margin (10.02%) than 86.67% of its industry peers.
- In the last couple of years the Gross Margin of MT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.21% | ||
| PM (TTM) | 4.23% | ||
| GM | 10.02% |
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
- MT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, MT has less shares outstanding
- MT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MT has a worse debt to assets ratio.
2.2 Solvency
- MT has a debt to FCF ratio of 323.22. This is a negative value and a sign of low solvency as MT would need 323.22 years to pay back of all of its debts.
- MT's Debt to FCF ratio of 323.22 is on the low side compared to the rest of the industry. MT is outperformed by 62.22% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that MT is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.19, MT perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 323.22 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC8.92%
2.3 Liquidity
- MT has a Current Ratio of 1.39. This is a normal value and indicates that MT is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of MT (1.39) is worse than 84.44% of its industry peers.
- MT has a Quick Ratio of 1.39. This is a bad value and indicates that MT is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.58, MT is not doing good in the industry: 84.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- MT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.78%.
- 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.
- Looking at the last year, MT shows a decrease in Revenue. The Revenue has decreased by -1.90% in the last year.
- MT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.43% yearly.
EPS 1Y (TTM)-2.78%
EPS 3Y-39.64%
EPS 5YN/A
EPS Q2Q%-1.59%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%3.03%
3.2 Future
- Based on estimates for the next years, MT will show a very strong growth in Earnings Per Share. The EPS will grow by 27.53% on average per year.
- The Revenue is expected to grow by 2.09% on average over the next years.
EPS Next Y25.82%
EPS Next 2Y31.04%
EPS Next 3Y27.53%
EPS Next 5YN/A
Revenue Next Year-1.71%
Revenue Next 2Y2.99%
Revenue Next 3Y2.89%
Revenue Next 5Y2.09%
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
- MT is valuated correctly with a Price/Earnings ratio of 15.66.
- Based on the Price/Earnings ratio, MT is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of MT to the average of the S&P500 Index (28.60), we can say MT is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 10.85, the valuation of MT can be described as very reasonable.
- 88.89% of the companies in the same industry are more expensive than MT, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, MT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
- MT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MT is cheaper than 71.11% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MT is valued a bit more expensive than the industry average as 62.22% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 922.74 | ||
| EV/EBITDA | 8.56 |
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 27.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y31.04%
EPS Next 3Y27.53%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.96%, MT is not a good candidate for dividend investing.
- MT's Dividend Yield is comparable with the industry average which is at 1.67.
- With a Dividend Yield of 0.96, MT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
- MT pays out 15.59% of its income as dividend. This is a sustainable payout ratio.
- The dividend of MT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP15.59%
EPS Next 2Y31.04%
EPS Next 3Y27.53%
ARCELORMITTAL / MT.AS FAQ
What is the fundamental rating for MT stock?
ChartMill assigns a fundamental rating of 3 / 10 to MT.AS.
What is the valuation status for MT stock?
ChartMill assigns a valuation rating of 6 / 10 to ARCELORMITTAL (MT.AS). This can be considered as Fairly Valued.
How profitable is ARCELORMITTAL (MT.AS) stock?
ARCELORMITTAL (MT.AS) has a profitability rating of 4 / 10.
What are the PE and PB ratios of ARCELORMITTAL (MT.AS) stock?
The Price/Earnings (PE) ratio for ARCELORMITTAL (MT.AS) is 15.66 and the Price/Book (PB) ratio is 0.78.
Is the dividend of ARCELORMITTAL sustainable?
The dividend rating of ARCELORMITTAL (MT.AS) is 3 / 10 and the dividend payout ratio is 15.59%.