Arcelormittal Sa Adr Stock Beneish M Score

MT Stock  USD 26.10  0.32  1.21%   
This module uses fundamental data of ArcelorMittal to approximate the value of its Beneish M Score. ArcelorMittal M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out ArcelorMittal Piotroski F Score and ArcelorMittal Altman Z Score analysis.
  
Total Debt is likely to gain to about 11.8 B in 2024. Debt Current is likely to gain to about 2.3 B in 2024. At this time, ArcelorMittal's Profit Margin is comparatively stable as compared to the past year. Payout Ratio is likely to gain to 0.03 in 2024, whereas Current Ratio is likely to drop 1.79 in 2024.
At this time, it appears that ArcelorMittal SA ADR is an unlikely manipulator. The earnings manipulation may begin if ArcelorMittal's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by ArcelorMittal executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of ArcelorMittal's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.63
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.09

Focus
Asset Quality

0.91

Focus
Expense Coverage

1.1

Focus
Gross Margin Strengs

0.83

Focus
Accruals Factor

1.1

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.94

Focus
Financial Leverage Condition

1.13

Focus

ArcelorMittal Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if ArcelorMittal's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense2.1 BB
Sufficiently Up
Slightly volatile
Revenues67.5 B71.9 B
Notably Down
Slightly volatile
Trade and Non Trade Receivables4.5 B4.4 B
Fairly Up
Pretty Stable
Property Plant and Equipment Net29.8 B27.2 B
Significantly Up
Slightly volatile
Operating Income12.7 B11.8 B
Significantly Up
Slightly volatile
Net Cash Flow from Operations12.7 B11.7 B
Significantly Up
Slightly volatile
Liabilities Non Current18.2 B14.9 B
Fairly Up
Slightly volatile
Current Liabilities26.2 B25.8 B
Fairly Up
Very volatile
Total Liabilities38 B35.1 B
Significantly Up
Slightly volatile
Investments Non Current11.7 B13.7 B
Fairly Down
Slightly volatile
Investments Current361.8 M417.4 M
Fairly Down
Slightly volatile
Investments11.8 B13.7 B
Fairly Down
Slightly volatile
Gross Margin0.150.18
Fairly Down
Slightly volatile
Depreciation Amortization and Accretion2.5 B2.3 B
Significantly Up
Slightly volatile
Debt Non Current9.4 B8.2 B
Fairly Up
Slightly volatile
Debt Current2.3 B2.3 B
Slightly Up
Slightly volatile
Total Debt11.8 B10.5 B
Moderately Up
Slightly volatile
Assets Non Current52.5 B51.7 B
Fairly Up
Slightly volatile
Current Assets39.5 B42.7 B
Significantly Down
Slightly volatile
Total Assets82.5 B85.1 B
Sufficiently Down
Slightly volatile

ArcelorMittal SA ADR Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between ArcelorMittal's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards ArcelorMittal in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find ArcelorMittal's degree of accounting gimmicks and manipulations.

About ArcelorMittal Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Cost of Revenue

58.61 Billion

At this time, ArcelorMittal's Cost of Revenue is comparatively stable as compared to the past year.

ArcelorMittal Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as ArcelorMittal. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Revenues70.6B53.3B76.6B79.8B71.9B67.5B
Total Assets87.9B82.1B90.5B94.5B85.1B82.5B
Current Assets28.6B28.0B34.9B37.1B42.7B39.5B
Assets Non Current59.3B54.1B55.6B57.4B51.7B52.5B
Total Liabilities47.4B41.8B39.2B39.0B35.1B38.0B
Current Liabilities21.3B22.7B24.2B22.4B25.8B26.2B
Total Debt14.3B12.3B8.4B11.7B10.5B11.8B
Debt Current2.9B2.5B1.9B2.6B2.3B2.3B
Debt Non Current11.5B9.8B6.5B9.1B8.2B9.4B
Operating Income(627M)2.1B17.0B10.3B11.8B12.7B
Investments7.4B10.2B11.5B11.9B13.7B11.8B
Gross Margin0.0240.0780.250.160.180.15

About ArcelorMittal Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze ArcelorMittal SA ADR's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ArcelorMittal using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ArcelorMittal SA ADR based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
ArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in Europe, North and South America, Asia, and Africa. ArcelorMittal S.A. was founded in 1976 and is headquartered in Luxembourg City, Luxembourg. Arcelormittal ADR operates under Steel classification in the United States and is traded on New York Stock Exchange. It employs 158000 people.

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When determining whether ArcelorMittal SA ADR is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if ArcelorMittal Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Arcelormittal Sa Adr Stock. Highlighted below are key reports to facilitate an investment decision about Arcelormittal Sa Adr Stock:
Check out ArcelorMittal Piotroski F Score and ArcelorMittal Altman Z Score analysis.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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Is ArcelorMittal's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ArcelorMittal. If investors know ArcelorMittal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ArcelorMittal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Dividend Share
0.5
Earnings Share
1.09
Revenue Per Share
40.5435
Quarterly Revenue Growth
(0.14)
The market value of ArcelorMittal SA ADR is measured differently than its book value, which is the value of ArcelorMittal that is recorded on the company's balance sheet. Investors also form their own opinion of ArcelorMittal's value that differs from its market value or its book value, called intrinsic value, which is ArcelorMittal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ArcelorMittal's market value can be influenced by many factors that don't directly affect ArcelorMittal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ArcelorMittal's value and its price as these two are different measures arrived at by different means. Investors typically determine if ArcelorMittal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ArcelorMittal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.