ARCELORMITTAL SA's gross profit margin for the second quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ARCELORMITTAL SA has very weak liquidity. Currently, the Quick Ratio is 0.41 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.36% 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||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||20704.0||20197.0|
|Net Income ($mil)||52.0||-780.0|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||4404.0||6918.0|
|Total Assets ($mil)||109603.0||112633.0|
|Total Debt ($mil)||21834.0||23083.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||8.52||8.11|
|Return on Assets||-1.43||-4.95|
|Return on Equity||-3.32||-11.66|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||1653.6||0.0|
|Div / share||0.2||0.2|
|Book value / share||29.59||0.0|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5959187.0||4623915.0|
HOLD. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 0.42 indicates a significant discount versus the S&P 500 average of 2.49 and a discount versus the industry average of 1.69. 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.
|MT NM||Peers 28.57||MT NA||Peers 13.56|
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.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|MT 10.09||Peers 19.13||MT NA||Peers 0.39|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
MT is trading at a significant premium to its peers.
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.
|MT 0.42||Peers 1.69||MT 74.58||Peers -43.84|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
MT is expected to have an earnings growth rate that significantly exceeds its peers.
|MT 0.25||Peers 2.47||MT 1.26||Peers 46.09|
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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