ARCELORMITTAL-NY REGISTERED (MT) Stock Fundamental Analysis
NYSE:MT - New York Stock Exchange, Inc. - US03938L2034 - Currency: USD
Overall MT gets a fundamental rating of 4 out of 10. We evaluated MT against 154 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 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.
Each year in the past 5 years MT had a positive operating cash flow.
1.2 Ratios
MT has a Return On Assets of 1.32%. This is in the better half of the industry: MT outperforms 62.34% of its industry peers.
MT's Return On Equity of 2.36% is fine compared to the rest of the industry. MT outperforms 61.69% of its industry peers.
MT has a Return On Invested Capital (3.14%) which is comparable to the rest of the industry.
MT had an Average Return On Invested Capital over the past 3 years of 5.89%. This is significantly below the industry average of 11.67%.
| 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 decent Profit Margin value of 1.98%, MT is doing good in the industry, outperforming 66.23% of the companies in the same industry.
MT's Profit Margin has declined in the last couple of years.
The Operating Margin of MT (5.57%) is comparable to the rest of the industry.
MT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 10.04%, MT is in line with its industry, outperforming 42.21% of the companies in the same industry.
In the last couple of years the Gross Margin of MT has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MT is destroying value.
The number of shares outstanding for MT has been reduced compared to 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
The Debt to FCF ratio of MT is 26.08, which is on the high side as it means it would take MT, 26.08 years of fcf income to pay off all of its debts.
MT's Debt to FCF ratio of 26.08 is in line compared to the rest of the industry. MT outperforms 59.09% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that MT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.17, MT perfoms like the industry average, outperforming 51.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 26.08 | ||
| Altman-Z | N/A |
ROIC/WACC0.38
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.35 indicates that MT should not have too much problems paying its short term obligations.
The Current ratio of MT (1.35) is worse than 74.68% 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.
MT's Quick ratio of 0.58 is on the low side compared to the rest of the industry. MT is outperformed by 87.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.58 |
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 -7.72%.
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)-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, MT 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
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
Based on the Price/Earnings ratio of 11.72, the valuation of MT can be described as reasonable.
91.56% of the companies in the same industry are more expensive than MT, based on the Price/Earnings ratio.
MT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 6.46, 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 90.91% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 6.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MT is valued cheaply inside the industry as 87.01% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MT indicates a somewhat cheap valuation: MT is cheaper than 64.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.01 | ||
| EV/EBITDA | 5.78 |
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)0.36
PEG (5Y)N/A
EPS Next 2Y31.91%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
MT has a Yearly Dividend Yield of 1.74%.
MT's Dividend Yield is a higher than the industry average which is at 2.98.
MT's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
On average, the dividend of MT grows each year by 37.57%, which is quite nice.
MT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MT decreased recently.
Dividend Growth(5Y)37.57%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
32.59% of the earnings are spent on dividend by MT. This is a low number and sustainable payout ratio.
MT'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%
33.05
+1.83 (+5.86%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners19.71%
Inst Owner Change0.75%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap28.19B
Analysts79.23
Price Target36.74 (11.16%)
Short Float %1.01%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.49
Dividend Growth(5Y)37.57%
DP32.59%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.92%
PT rev (3m)15.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 6.46 | ||
| P/S | 0.46 | ||
| P/FCF | 61.01 | ||
| P/OCF | 6.13 | ||
| P/B | 0.55 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 5.78 |
EPS(TTM)2.82
EY8.53%
EPS(NY)5.12
Fwd EY15.48%
FCF(TTM)0.54
FCFY1.64%
OCF(TTM)5.39
OCFY16.31%
SpS71.48
BVpS60.04
TBVpS54.65
PEG (NY)0.36
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
WACC8.21%
ROIC/WACC0.38
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%