ArcelorMittal SA

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MT : NYSE : Non-Energy Minerals
$35.0 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 3372000.0
02/20/18 - 4:01 PM ET

Financial Analysis


ARCELORMITTAL's gross profit margin for the fourth quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors. ARCELORMITTAL has very weak liquidity. Currently, the Quick Ratio is 0.31 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 greatly increased by 28.71% 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 FY17 Q4 FY16
Net Sales ($mil)17710.014126.0
EBITDA ($mil)1981.01505.0
EBIT ($mil)1234.0809.0
Net Income ($mil)1039.0403.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)2786.02615.0
Total Assets ($mil)85297.075142.0
Total Debt ($mil)12928.013674.0
Equity ($mil)38789.030135.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin11.1910.65
EBITDA Margin11.1810.65
Operating Margin6.975.73
Sales Turnover0.810.76
Return on Assets5.352.36
Return on Equity11.775.9
Debt Q4 FY17 Q4 FY16
Current Ratio1.251.23
Debt/Capital0.250.31
Interest Expense188.0221.0
Interest Coverage6.563.66


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)1019.51019.5
Div / share0.00.0
EPS1.010.39
Book value / share38.0529.56
Institutional Own % n/a n/a
Avg Daily Volume3402538.04108162.0

Valuation


HOLD. ARCELORMITTAL's P/E ratio indicates a significant discount compared to an average of 33.03 for the Metals & Mining industry and a significant discount compared to the S&P 500 average of 25.51. Conducting a second comparison, its price-to-book ratio of 0.93 indicates a significant discount versus the S&P 500 average of 3.26 and a discount versus the industry average of 2.17. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ARCELORMITTAL 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 7.89 Peers 33.03   MT 7.86 Peers 11.77

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MT is trading at a significant discount to its peers.

 

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 10.69 Peers 18.48   MT 0.02 Peers 1.63

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.

 

Discount. 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.

MT trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MT 0.93 Peers 2.17   MT 198.00 Peers 243.99

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 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 0.52 Peers 3.03   MT 20.93 Peers 23.78

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 trails its peers on the basis of sales growth

 

 

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