ArcelorMittal SA

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MT : NYSE : Basic Materials
$6.52 | %
Today's Range: 6.30 - 6.55
Avg. Daily Volume: 16,449,900
07/29/16 - 4:04 PM ET

Financial Analysis


ARCELORMITTAL SA's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. ARCELORMITTAL SA has very weak liquidity. Currently, the Quick Ratio is 0.33 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 27.84% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)13399.017118.0
EBITDA ($mil)927.01378.0
EBIT ($mil)275.0571.0
Net Income ($mil)-416.0-728.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)2863.02779.0
Total Assets ($mil)76559.088517.0
Total Debt ($mil)20192.019427.0
Equity ($mil)25580.035452.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin6.928.05
EBITDA Margin6.918.05
Operating Margin2.053.34
Sales Turnover0.780.87
Return on Assets-9.97-1.81
Return on Equity-29.84-4.53
Debt Q1 FY16 Q1 FY15
Current Ratio1.21.32
Debt/Capital0.440.35
Interest Expense332.0323.0
Interest Coverage0.831.77


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)1656.811654.37
Div / share0.00.0
EPS-0.23-0.41
Book value / share15.4421.43
Institutional Own % n/a n/a
Avg Daily Volume1.6190041E71.4218132E7

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. For additional comparison, its price-to-book ratio of 0.36 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 1.91. 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 165.02   MT 3.86 Peers 12.79

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 19.79 Peers 44.32   MT NA Peers 2.15

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

MT is trading at a significant discount 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MT 0.36 Peers 1.91   MT -372.22 Peers -163.28

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 3.52   MT -21.87 Peers -15.18

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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