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ArcelorMittal SA
MT : : Basic Materials
$5.63 | %
Today's Range: 5.57 - 5.94
Avg. Daily Volume: 15,990,000
04/29/16 - 4:02 PM ET

Financial Analysis


ARCELORMITTAL SA's gross profit margin for the fourth quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its industry. ARCELORMITTAL SA has very weak liquidity. Currently, the Quick Ratio is 0.38 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 39.95% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)13981.018723.0
EBITDA ($mil)-2604.01551.0
EBIT ($mil)-3411.0569.0
Net Income ($mil)-6686.0-955.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)4102.04016.0
Total Assets ($mil)76846.099179.0
Total Debt ($mil)19786.019797.0
Equity ($mil)25272.042086.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin-18.638.28
EBITDA Margin-18.628.28
Operating Margin-24.43.04
Sales Turnover0.830.8
Return on Assets-10.34-1.09
Return on Equity-31.44-2.61
Debt Q4 FY15 Q4 FY14
Current Ratio1.241.33
Debt/Capital0.440.32
Interest Expense312.0322.0
Interest Coverage-10.931.77


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)1656.811654.37
Div / share0.00.0
EPS-3.72-0.53
Book value / share15.2525.44
Institutional Own % n/a n/a
Avg Daily Volume1.4122369E71.0075519E7

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 0.38 indicates a significant discount versus the S&P 500 average of 2.76 and a discount versus the industry average of 1.72. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ARCELORMITTAL SA proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MT NM Peers 139.69   MT 4.41 Peers 10.88

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

MT's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MT is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MT 26.00 Peers 82.97   MT NA Peers 7.06

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

MT's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MT 0.38 Peers 1.72   MT -626.22 Peers -342.24

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MT is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, MT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MT 0.15 Peers 2.94   MT -19.81 Peers 12.38

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MT is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MT significantly trails its peers on the basis of sales growth

 

 

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