ArcelorMittal SA

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MT : NYSE : Basic Materials
$7.69 | %
Today's Range: 7.58 - 7.75
Avg. Daily Volume: 1.81577E7
04/21/17 - 4:00 PM ET

Financial Analysis


ARCELORMITTAL's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. 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.

During the same period, stockholders' equity ("net worth") has increased by 19.24% 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 FY16 Q4 FY15
Net Sales ($mil)14126.013981.0
EBITDA ($mil)1505.0-2604.0
EBIT ($mil)809.0-3411.0
Net Income ($mil)403.0-6686.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2615.04102.0
Total Assets ($mil)75142.076846.0
Total Debt ($mil)13674.019786.0
Equity ($mil)30135.025272.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin10.65-18.63
EBITDA Margin10.65-18.62
Operating Margin5.73-24.4
Sales Turnover0.760.83
Return on Assets2.36-10.34
Return on Equity5.9-31.44
Debt Q4 FY16 Q4 FY15
Current Ratio1.231.24
Debt/Capital0.310.44
Interest Expense221.0312.0
Interest Coverage3.66-10.93


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)3058.491656.81
Div / share0.00.0
EPS0.13-2.89
Book value / share9.8515.25
Institutional Own % n/a n/a
Avg Daily Volume1.8000812E71.8461336E7

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 37.01 for the Metals & Mining industry and a discount compared to the S&P 500 average of 24.92. Conducting a second comparison, its price-to-book ratio of 0.77 indicates a significant discount versus the S&P 500 average of 2.99 and a discount versus the industry average of 1.83. 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 15.14 Peers 37.01   MT 8.55 Peers 10.26

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 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 8.80 Peers 22.49   MT 0.34 Peers 0.58

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 0.77 Peers 1.83   MT 114.24 Peers 254.19

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 0.41 Peers 3.09   MT -10.68 Peers 3.26

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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