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.
In the past year MT had a positive cash flow from operations.
Of the past 5 years MT 4 years were profitable.
In the past 5 years MT always reported a positive cash flow from operatings.
1.2 Ratios
MT has a Return On Assets (1.50%) which is in line with its industry peers.
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.
With a Return On Invested Capital value of 3.46%, MT perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
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 6.44%.
| 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 has a Profit Margin (2.14%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MT has declined.
The Operating Margin of MT (5.83%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MT has grown nicely.
The Gross Margin of MT (9.80%) is worse than 81.08% 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
MT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MT has less shares outstanding
The debt/assets ratio for MT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that MT is in the distress zone and has some risk of bankruptcy.
MT's Altman-Z score of 1.70 is in line compared to the rest of the industry. MT outperforms 40.54% 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.
With a Debt to FCF ratio value of 25.87, MT perfoms like the industry average, outperforming 43.24% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that MT is not too dependend on debt financing.
The Debt to Equity ratio of MT (0.18) is better than 67.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.4
WACC8.64%
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.
The Current ratio of MT (1.35) is worse than 78.38% of its industry peers.
MT has a Quick Ratio of 1.35. 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 0.59, MT is not doing good in the industry: 78.38% of the companies in the same industry are doing better.
| 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.
MT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -39.64% yearly.
MT shows a decrease in Revenue. In the last year, the revenue decreased by -8.54%.
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)-8.54%
Revenue growth 3Y-6.57%
Revenue growth 5Y-2.43%
Sales Q2Q%-9.11%
3.2 Future
MT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.77% yearly.
The Revenue is expected to grow by 0.89% 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 5Y0.89%
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.
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
MT is valuated reasonably with a Price/Earnings ratio of 10.79.
MT's Price/Earnings ratio is a bit cheaper when compared to the industry. MT is cheaper than 70.27% of the companies in the same industry.
MT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.20.
A Price/Forward Earnings ratio of 5.94 indicates a rather cheap valuation of MT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MT indicates a rather cheap valuation: MT is cheaper than 91.89% of the companies listed in the same industry.
MT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 5.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MT indicates a somewhat cheap valuation: MT is cheaper than 67.57% of the companies listed in the same industry.
MT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.99 | ||
| EV/EBITDA | 4.99 |
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 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
MT has a Yearly Dividend Yield of 1.75%.
Compared to an average industry Dividend Yield of 3.11, MT has a dividend in line with its industry peers.
MT's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
MT pays out 29.35% 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.
DP29.35%
EPS Next 2Y31.91%
EPS Next 3Y23.77%
AMS:MT (5/29/2025, 7:00:00 PM)
26.86
-0.32 (-1.18%)
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 Cap22.91B
Analysts78.46
Price Target32.3 (20.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)-0.43%
PT rev (3m)4.06%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-24.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)0.81%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 5.94 | ||
| P/S | 0.42 | ||
| P/FCF | 57.99 | ||
| P/OCF | 5.34 | ||
| P/B | 0.53 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 4.99 |
EPS(TTM)2.49
EY9.27%
EPS(NY)4.52
Fwd EY16.83%
FCF(TTM)0.46
FCFY1.72%
OCF(TTM)5.03
OCFY18.72%
SpS64.7
BVpS51
TBVpS46.39
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
WACC8.64%
ROIC/WACC0.4
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-3.05%
Revenue Next 2Y0.4%
Revenue Next 3Y0.64%
Revenue Next 5Y0.89%
EBIT growth 1Y-25.41%
EBIT growth 3Y-39.88%
EBIT growth 5Y22.88%
EBIT Next Year89.21%
EBIT Next 3Y30.64%
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%