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ArcelorMittal (MT)
:MT
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ArcelorMittal
(NYSE:MT)
Rating:67Neutral
Price Target:
$33.00
▲(8.02%Upside)
ArcelorMittal (MT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.14B
Dividend Yield1.47%
Average Volume (3M)1.53M
Price to Earnings (P/E)18.0
Beta (1Y)1.06
Revenue Growth-8.56%
EPS Growth68.36%
CountryUS
Employees125,416
SectorBasic Materials
Sector Strength67
IndustrySteel
Share Statistics
EPS (TTM)1.04
Shares Outstanding852,809,750
10 Day Avg. Volume1,757,646
30 Day Avg. Volume1,531,667
Financial Highlights & Ratios
PEG Ratio-3.18
Price to Book (P/B)0.45
Price to Sales (P/S)0.00
P/FCF Ratio-26.53
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.86
Enterprise Value/Ebitda1.47
Forecast
1Y Price Target
$31.97Price Target Upside4.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
ArcelorMittal Business Overview & Revenue Model
Company DescriptionArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in Europe, North and South America, Asia, and Africa. Its principal steel products include semi-finished flat products, including slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate, and color coated coils and sheets; semi-finished long products, which includes blooms and billets; finished long products, including bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes. The company's principal mining products comprise iron ore lumps, fines, concentrates, pellets, and sinter feeds; and coking and thermal coal, and pulverized coal injections. It sells its products to various customers in the automotive, appliance, engineering, construction, energy, and machinery industries through a centralized marketing organization, as well as distributors. The company has iron ore mining activities in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, South Africa, and Ukraine; and coal mining activities in Kazakhstan. ArcelorMittal S.A. was founded in 1976 and is headquartered in Luxembourg City, Luxembourg.
How the Company Makes MoneyArcelorMittal generates revenue primarily through the production and sale of steel and steel products. The company's revenue streams include the sale of flat and long steel products, which serve a broad range of industries such as automotive, construction, and machinery. Additionally, ArcelorMittal operates a mining segment that produces iron ore and coal, which are essential raw materials for steel production. This vertical integration allows the company to supply its steel operations with key resources, optimizing cost efficiency. Revenue is further bolstered by strategic partnerships and joint ventures, which enhance its market reach and operational capabilities. ArcelorMittal also invests in research and development to innovate and offer specialized steel solutions, catering to the evolving demands of its diverse customer base.
ArcelorMittal Key Performance Indicators (KPIs)
Any
Average Steel Selling Price Per Tonne
Indicates the average price at which steel is sold, reflecting market demand, pricing power, and potential revenue growth or pressure.
Indicates the average price at which steel is sold, reflecting market demand, pricing power, and potential revenue growth or pressure.
Data provided by:
Main Street Data
Main Street DataArcelorMittal Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 1.97%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong operational and financial performance with significant strategic initiatives and a positive outlook for future quarters. However, challenges related to tariffs, trade uncertainties, and specific regional issues such as China and Brazil remain areas of concern.Q1-2025 Updates
Positive Updates
Strong Operational and Financial Performance
ArcelorMittal reported strong operational performance and cash flows. Operations across various segments performed well, with the Mining segment in Liberia achieving record production and shipments. This was supported by mills in Europe and normalized operations in North America.
Resilient EBITDA and Cash Flow
The company reported an EBITDA per ton of $116, double the level compared to previous cyclical lows. Excluding seasonal working capital investment and discretionary growth CapEx, the underlying free cash flow was around $700 million.
Strategic Projects and Capital Return
ArcelorMittal's growth projects, including the Liberia expansion and the new EAF at Calvert, are on track. A new long-term share buyback program through 2030 has been initiated, demonstrating confidence in returning capital to shareholders.
Positive Outlook for Q2 2025
The company expects Q2 EBITDA to be clearly better than Q1, driven by higher volumes and a positive price-cost effect, particularly in Europe. EU spreads have recovered, providing strong support for near-term results.
Negative Updates
Impact of Tariffs and Trade Uncertainty
While the impact of Section 232 tariffs in North America is expected to be largely neutral, the company is closely monitoring potential demand impacts. The tariff absorption in the U.S. remains a concern.
Challenges in China
Demand in China continues to be challenging, with weak spreads and elevated exports. There is uncertainty around potential stimulus and its impact on steel consumption.
High Costs and Impairment in Brazil
High costs led to the cancellation of the Monlevade expansion project in Brazil, which had been on hold and was deemed prohibitive in cost.
Company Guidance
In the first quarter of 2025, ArcelorMittal reported strong operational and financial performance, with standout achievements in the Mining segment, particularly in Liberia, which set records for production and shipments. The company's EBITDA per ton reached $116, doubling from previous cyclical lows, demonstrating improved resilience and profitability. Despite seasonal investments in working capital, ArcelorMittal generated an underlying free cash flow of approximately $700 million, underscoring its robust cash flow capabilities even at the bottom of the cycle. The company anticipates a better EBITDA in the second quarter, driven by recovering EU spreads and strategic price-cost positioning in Europe, supported by trade actions. ArcelorMittal also highlighted its commitment to safety, aiming for a zero-fatality and serious injury-free workplace within three years. The company remains focused on its strategic growth projects, such as the Liberia expansion, which is on track, and the commissioning of a new state-of-the-art EAF at Calvert. ArcelorMittal has initiated a new long-term share buyback program through 2030, reinforcing its commitment to returning capital to shareholders while investing in growth.ArcelorMittal Financial Statement Overview
Summary
ArcelorMittal faces challenges with declining revenue and profitability, evidenced by reduced margins and negative revenue growth. The balance sheet remains strong with substantial equity and moderate debt, providing stability. Cash flow generation presents concerns due to negative free cash flow, although operating cash flow is healthy. Improvement in profitability and cash flow is necessary to enhance financial performance.Income Statement
In TTM, the gross profit margin is strong at 57.14%, indicating efficient cost management. However, net profit margin has decreased to 1.98% from the previous year, showing a decline in profitability. Revenue growth is negative, with a drop of 2.38% from last year to TTM, reflecting industry challenges. EBIT margin stands at 5.02%, and EBITDA margin is 9.89%, both lower than historical performance, suggesting pressure on operational efficiency.60
Neutral
Balance Sheet
The company maintains a solid equity position with an equity ratio of 56.00%. The debt-to-equity ratio is moderate at 0.24, indicating manageable leverage levels. ROE has decreased but remains positive at 2.36%, reflecting reduced profitability. Overall, the balance sheet is stable with a strong equity base and controlled debt levels.75
Positive
Cash Flow
Free cash flow is negative in TTM, showing a decline from last year, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is robust at 3.73, suggesting strong cash generation from operations relative to net income. However, the free cash flow to net income ratio is negative, indicating issues in translating profits into free cash flow.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 60.96B | 62.44B | 68.28B | 79.84B | 76.57B | 53.27B | Gross Profit |
| 34.83B | 5.79B | 4.74B | 12.54B | 19.23B | 4.13B | EBIT |
| 3.06B | 3.31B | 2.34B | 10.27B | 16.98B | -1.32B | EBITDA |
| 6.03B | 6.06B | 4.65B | 12.92B | 19.15B | 5.26B | Net Income Common Stockholders |
| 1.21B | 1.34B | 919.00M | 9.30B | 20.48B | -578.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.32B | 6.48B | 7.69B | 9.41B | 4.37B | 5.96B | Total Assets |
| 91.45B | 89.39B | 93.92B | 94.55B | 90.51B | 82.05B | Total Debt |
| 12.05B | 11.56B | 10.68B | 11.65B | 8.40B | 12.32B | Net Debt |
| 6.73B | 5.16B | 3.00B | 2.24B | 4.03B | 6.36B | Total Liabilities |
| 38.15B | 38.10B | 37.85B | 38.96B | 39.17B | 41.81B | Stockholders Equity |
| 51.21B | 49.22B | 53.96B | 53.15B | 49.11B | 38.28B |
| Cash Flow | Free Cash Flow | ||||
| -874.00M | 447.00M | 3.03B | 6.74B | 6.90B | 1.64B | Operating Cash Flow |
| 4.50B | 4.85B | 7.64B | 10.20B | 9.90B | 4.08B | Investing Cash Flow |
| -5.05B | -4.99B | -5.85B | -4.48B | -340.00M | -2.01B | Financing Cash Flow |
| -725.00M | -680.00M | -3.67B | -477.00M | -10.90B | -1.50B |
ArcelorMittal Technical Analysis
Positive
30.55
Price Trends
29.04
Positive
28.45
Positive
26.14
Positive
Market Momentum
0.29
Positive
53.57
Neutral
40.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MT, the sentiment is Positive. The current price of 30.55 is below the 20-day moving average (MA) of 30.63, above the 50-day MA of 29.04, and above the 200-day MA of 26.14, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 40.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MT.
ArcelorMittal Risk Analysis
ArcelorMittal disclosed 37 risk factors in its most recent earnings report. ArcelorMittal reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ArcelorMittal Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.21B | 22.10 | 10.27% | 1.49% | -5.60% | -35.05% | |
78 Outperform | $20.31B | 18.09 | 13.08% | 1.39% | -7.42% | -48.08% | |
70 Outperform | $28.23B | 21.78 | 6.54% | 1.79% | -10.88% | -66.97% | |
67 Neutral | $25.14B | 17.98 | 2.60% | 1.47% | -8.56% | 68.36% | |
66 Neutral | $12.99B | 21.14 | 1.64% | 3.55% | -8.83% | -43.85% | |
58 Neutral | $12.17B | 182.48 | 0.86% | 0.37% | -14.79% | -88.78% | |
51 Neutral | $2.02B | -1.12 | -21.36% | 3.65% | 2.87% | -30.54% |
* Basic Materials Sector Average
Performance Comparison
MT
ArcelorMittal
30.55
5.83
23.58%
NUE
Nucor
118.75
-39.64
-25.03%
PKX
POSCO
47.68
-20.91
-30.49%
RS
Reliance Steel
307.07
24.57
8.70%
STLD
Steel Dynamics
132.10
8.50
6.88%
X
United States Steel
52.96
14.88
39.08%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.