ARCELORMITTAL (MT.AS)

LU1598757687 - Common Stock

25.575  +0.08 (+0.31%)

Fundamental Rating

4

Taking everything into account, MT scores 4 out of 10 in our fundamental rating. MT was compared to 40 industry peers in the Metals & Mining industry. MT has only an average score on both its financial health and profitability. MT is valued quite cheap, but it does not seem to be growing.



4

1. Profitability

1.1 Basic Checks

In the past year MT was profitable.
In the past year MT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MT reported negative net income in multiple years.
Each year in the past 5 years MT had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of 0.98%, MT perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
MT has a Return On Equity of 1.70%. This is comparable to the rest of the industry: MT outperforms 43.59% of its industry peers.
The Return On Invested Capital of MT (5.61%) is better than 64.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MT is above the industry average of 8.14%.
The last Return On Invested Capital (5.61%) for MT is well below the 3 year average (13.03%), which needs to be investigated, but indicates that MT had better years and this may not be a problem.
Industry RankSector Rank
ROA 0.98%
ROE 1.7%
ROIC 5.61%
ROA(3y)9.11%
ROA(5y)4.73%
ROE(3y)16.55%
ROE(5y)8.28%
ROIC(3y)13.03%
ROIC(5y)8.27%

1.3 Margins

With a Profit Margin value of 1.35%, MT perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
In the last couple of years the Profit Margin of MT has declined.
MT's Operating Margin of 7.15% is fine compared to the rest of the industry. MT outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of MT has declined.
Industry RankSector Rank
OM 7.15%
PM (TTM) 1.35%
GM N/A
OM growth 3Y94.6%
OM growth 5Y-4.09%
PM growth 3YN/A
PM growth 5Y-27.61%
GM growth 3YN/A
GM growth 5YN/A

4

2. Health

2.1 Basic Checks

MT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MT has more shares outstanding
The number of shares outstanding for MT has been reduced compared to 5 years ago.
The debt/assets ratio for MT has been reduced compared to a year ago.

2.2 Solvency

MT has a debt to FCF ratio of 3.52. This is a good value and a sign of high solvency as MT would need 3.52 years to pay back of all of its debts.
MT has a Debt to FCF ratio of 3.52. This is in the better half of the industry: MT outperforms 76.92% of its industry peers.
MT has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
MT has a better Debt to Equity ratio (0.16) than 74.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 3.52
Altman-Z N/A
ROIC/WACC0.69
WACC8.15%

2.3 Liquidity

A Current Ratio of 1.53 indicates that MT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.53, MT is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
MT has a Quick Ratio of 1.53. This is a bad value and indicates that MT is not financially healthy enough and could expect problems in meeting its short term obligations.
MT has a Quick ratio of 0.67. This is in the lower half of the industry: MT underperforms 74.36% of its industry peers.
Industry RankSector Rank
Current Ratio 1.53
Quick Ratio 0.67

3

3. Growth

3.1 Past

The earnings per share for MT have decreased strongly by -47.68% in the last year.
MT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.52% yearly.
The Revenue for MT has decreased by -14.49% in the past year. This is quite bad
Measured over the past years, MT shows a decrease in Revenue. The Revenue has been decreasing by -2.13% on average per year.
EPS 1Y (TTM)-47.68%
EPS 3YN/A
EPS 5Y-3.52%
EPS growth Q2Q-13.87%
Revenue 1Y (TTM)-14.49%
Revenue growth 3Y8.62%
Revenue growth 5Y-2.13%
Revenue growth Q2Q-13.85%

3.2 Future

Based on estimates for the next years, MT will show a small growth in Earnings Per Share. The EPS will grow by 2.89% on average per year.
The Revenue is expected to grow by 0.77% on average over the next years.
EPS Next Y-16.81%
EPS Next 2Y-4.19%
EPS Next 3Y2.89%
EPS Next 5YN/A
Revenue Next Year-6.46%
Revenue Next 2Y-3.13%
Revenue Next 3Y-2.5%
Revenue Next 5Y0.77%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 4.81 indicates a rather cheap valuation of MT.
Compared to the rest of the industry, the Price/Earnings ratio of MT indicates a rather cheap valuation: MT is cheaper than 92.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MT to the average of the S&P500 Index (26.42), we can say MT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.78, the valuation of MT can be described as very cheap.
Based on the Price/Forward Earnings ratio, MT is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
MT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 4.81
Fwd PE 5.78

4.2 Price Multiples

76.92% of the companies in the same industry are more expensive than MT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MT is valued cheaper than 82.05% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.47
EV/EBITDA 3.32

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.19%
EPS Next 3Y2.89%

2

5. Dividend

5.1 Amount

MT has a Yearly Dividend Yield of 1.85%.
Compared to an average industry Dividend Yield of 4.47, MT has a dividend in line with its industry peers.
MT's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.85%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

MT pays out 40.15% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.15%
EPS Next 2Y-4.19%
EPS Next 3Y2.89%

ARCELORMITTAL

AMS:MT (3/28/2024, 10:46:01 AM)

25.575

+0.08 (+0.31%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.95B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.85%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 4.81
Fwd PE 5.78
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.98%
ROE 1.7%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.15%
PM (TTM) 1.35%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.53
Quick Ratio 0.67
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-47.68%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.49%
Revenue growth 3Y8.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y