ARCELORMITTAL (MT.AS) Stock Fundamental Analysis
AMS:MT - Euronext Amsterdam - LU1598757687 - Common Stock - Currency: EUR
Taking everything into account, MT scores 4 out of 10 in our fundamental rating. MT was compared to 37 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year MT was profitable.
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
The Return On Assets of MT (1.50%) is comparable to the rest of the industry.
With a Return On Equity value of 2.72%, MT perfoms like the industry average, outperforming 51.35% of the companies in the same industry.
MT's Return On Invested Capital of 3.46% is in line compared to the rest of the industry. MT outperforms 54.05% of its industry peers.
MT had an Average Return On Invested Capital over the past 3 years of 5.89%. This 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
MT's Profit Margin of 2.14% is in line compared to the rest of the industry. MT outperforms 48.65% of its industry peers.
MT's Profit Margin has declined in the last couple of years.
MT has a Operating Margin of 5.83%. This is comparable to the rest of the industry: MT outperforms 54.05% of its industry peers.
In the last couple of years the Operating Margin of MT has grown nicely.
MT's Gross Margin of 9.80% is on the low side compared to the rest of the industry. MT is outperformed by 78.38% of its industry peers.
MT'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), MT is destroying value.
MT has less shares outstanding than it did 1 year ago.
MT has less shares outstanding than it did 5 years ago.
MT has a worse debt/assets ratio than last year.
2.2 Solvency
MT has an Altman-Z score of 1.70. This is a bad value and indicates that MT is not financially healthy and even has some risk of bankruptcy.
MT has a Altman-Z score of 1.70. This is in the lower half of the industry: MT underperforms 62.16% of its industry peers.
The Debt to FCF ratio of MT is 25.87, which is on the high side as it means it would take MT, 25.87 years of fcf income to pay off all of its debts.
MT has a Debt to FCF ratio (25.87) which is comparable to the rest of the industry.
MT has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
MT 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 | 1.7 |
ROIC/WACC0.39
WACC8.84%
2.3 Liquidity
MT has a Current Ratio of 1.35. This is a normal value and indicates that MT is financially healthy and should not expect problems in meeting its short term obligations.
MT has a worse Current ratio (1.35) than 70.27% of its industry peers.
A Quick Ratio of 0.59 indicates that MT may have some problems paying its short term obligations.
The Quick ratio of MT (0.59) is worse than 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for MT have decreased strongly by -50.00% in the last year.
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.
MT shows a decrease in Revenue. In the last year, the revenue decreased by -8.54%.
Measured over the past years, MT shows a decrease in Revenue. The Revenue has been decreasing by -2.43% on average per year.
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
The Earnings Per Share is expected to grow by 23.77% 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 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-2.32%
Revenue Next 2Y0.65%
Revenue Next 3Y0.95%
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
With a Price/Earnings ratio of 10.82, the valuation of MT can be described as very reasonable.
Based on the Price/Earnings ratio, MT is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
MT is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.98, the valuation of MT can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MT indicates a rather cheap valuation: MT is cheaper than 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, MT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 5.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MT is valued a bit cheaper than the industry average as 70.27% of the companies are valued more expensively.
MT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.32 | ||
| EV/EBITDA | 4.98 |
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.
A more expensive valuation may be justified as MT's earnings are expected to grow with 23.77% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y31.91%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
MT has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.85, MT has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, MT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
On average, the dividend of MT 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 MT. This is a low number and sustainable payout ratio.
The dividend of MT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.35%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
AMS:MT (5/5/2025, 5:29:57 PM)
26.95
-0.13 (-0.48%)
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 Cap22.98B
Analysts78.46
Price Target31.95 (18.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)1.3%
PT rev (3m)6.23%
EPS NQ rev (1m)-22.98%
EPS NQ rev (3m)-23.49%
EPS NY rev (1m)-5.71%
EPS NY rev (3m)-4.31%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)-2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 5.98 | ||
| P/S | 0.42 | ||
| P/FCF | 58.32 | ||
| P/OCF | 5.37 | ||
| P/B | 0.53 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 4.98 |
EPS(TTM)2.49
EY9.24%
EPS(NY)4.51
Fwd EY16.73%
FCF(TTM)0.46
FCFY1.71%
OCF(TTM)5.02
OCFY18.61%
SpS64.55
BVpS50.88
TBVpS46.28
PEG (NY)0.33
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 | 1.7 |
F-Score6
WACC8.84%
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-2.32%
Revenue Next 2Y0.65%
Revenue Next 3Y0.95%
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%