ArcelorMittal Beneish M Score

MT Stock  USD 30.43  0.66  2.12%   
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. Additionally, see ArcelorMittal Piotroski F Score and ArcelorMittal Altman Z Score analysis.
  
ArcelorMittal Total Debt is comparatively stable at the moment as compared to the past year. ArcelorMittal reported Total Debt of 7.56 Billion in 2022. Debt Current is likely to gain to about 2.1 B in 2023, whereas Issuance Repayment of Debt Securities is likely to drop (4.8 B) in 2023. ArcelorMittal Free Cash Flow per Share is comparatively stable at the moment as compared to the past year. ArcelorMittal reported Free Cash Flow per Share of 7.32 in 2022. Gross Margin is likely to gain to 0.31 in 2023, whereas Enterprise Value over EBIT is likely to drop 1.44 in 2023.
At this time, it appears that ArcelorMittal SA ADR is a possible 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.
-2.05
Beneish M Score - Possible Manipulator
Elasticity of Receivables0.93Focus
Asset Quality1.11Focus
Expense Coverage1.1Focus
Gross Margin Strengs1.07Focus
Accruals Factor1.1Focus
Depreciation Resistance0.99Focus
Net Sales Growth0.97Focus
Financial Leverage Condition1.18Focus

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 Expense2.2 BB
Notably Up
Down
Slightly volatile
Revenues67 B68.9 B
Fairly Down
Down
Slightly volatile
Trade and Non Trade Receivables4.2 B4.6 B
Moderately Down
Down
Slightly volatile
Property Plant and Equipment Net31.3 B27.1 B
Fairly Up
Down
Slightly volatile
Operating Income21.1 B19.5 B
Significantly Up
Up
Slightly volatile
Net Cash Flow from Operations12.3 B11.4 B
Significantly Up
Up
Slightly volatile
Liabilities Non Current19 B13.5 B
Significantly Up
Down
Slightly volatile
Current Liabilities20.8 B21.8 B
Sufficiently Down
Down
Pretty Stable
Total Liabilities39.8 B35.3 B
Moderately Up
Down
Slightly volatile
Investments Non Current11.4 B13.2 B
Fairly Down
Up
Slightly volatile
Investments Current219.3 M179.4 M
Fairly Up
Up
Slightly volatile
Investments11.5 B13.4 B
Fairly Down
Up
Slightly volatile
Gross Margin0.310.29
Notably Up
Up
Slightly volatile
Depreciation Amortization and Accretion2.7 B2.3 B
Fairly Up
Down
Slightly volatile
Debt Non Current9.2 B5.8 B
Way Up
Down
Slightly volatile
Debt Current2.1 B1.7 B
Fairly Up
Down
Slightly volatile
Total Debt11.3 B7.6 B
Way Up
Down
Slightly volatile
Assets Non Current53.6 B50 B
Notably Up
Down
Slightly volatile
Current Assets29 B31.4 B
Significantly Down
Down
Pretty Stable
Total Assets82.5 B81.5 B
Fairly Up
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

55.34 Billion

ArcelorMittal Cost of Revenue is comparatively stable at the moment as compared to the past year. ArcelorMittal reported Cost of Revenue of 51.6 Billion in 2022

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.
201820192020202120222023 (projected)
Revenues76.03 B70.61 B53.27 B76.57 B68.91 B66.99 B
Total Assets91.25 B87.91 B82.05 B90.51 B81.46 B82.54 B
Current Assets32.48 B28.62 B27.97 B34.94 B31.45 B28.98 B
Assets Non Current58.77 B59.29 B54.08 B55.57 B50.02 B53.55 B
Total Liabilities47.14 B47.42 B41.81 B39.17 B35.25 B39.76 B
Current Liabilities23.45 B21.29 B22.67 B24.17 B21.75 B20.76 B
Total Debt12.48 B14.34 B12.32 B8.4 B7.56 B11.25 B
Debt Current3.17 B2.87 B2.51 B1.91 B1.72 B2.1 B
Debt Non Current9.32 B11.47 B9.81 B6.49 B5.84 B9.16 B
Operating Income6.54 B(627 M)2.11 B16.98 B19.52 B21.06 B
Investments5.76 B7.43 B10.16 B11.62 B13.36 B11.49 B
Gross Margin0.120.0240.0780.250.290.31

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.

ArcelorMittal Investors Sentiment

The influence of ArcelorMittal's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in ArcelorMittal. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to ArcelorMittal's public news can be used to forecast risks associated with investment in ArcelorMittal. The trend in average sentiment can be used to explain how an investor holding ArcelorMittal can time the market purely based on public headlines and social activities around ArcelorMittal SA ADR. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
ArcelorMittal's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for ArcelorMittal's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average ArcelorMittal's news discussions. The higher the estimated score, the more favorable is the investor's outlook on ArcelorMittal.

ArcelorMittal Implied Volatility

    
  49.6  
ArcelorMittal's implied volatility exposes the market's sentiment of ArcelorMittal SA ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if ArcelorMittal's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that ArcelorMittal stock will not fluctuate a lot when ArcelorMittal's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards ArcelorMittal in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, ArcelorMittal's short interest history, or implied volatility extrapolated from ArcelorMittal options trading.

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Additionally, see ArcelorMittal Piotroski F Score and ArcelorMittal Altman Z Score analysis. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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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
(0.73) 
Market Capitalization
25 B
Quarterly Revenue Growth
(0.06) 
Return On Assets
0.1037
Return On Equity
0.2608
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 ArcelorMittal value 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.