ArcelorMittal (MT) AI Stock Analysis

• Market Cap: $27.96B
• Dividend Yield: 1.45%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.06
• Revenue Growth: -4.51%
• EPS Growth: N/A
• Country: US
• Employees: 125,416
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 2.34
• Shares Outstanding: 852,809,750
• 10 Day Avg. Volume: 1,612,411
• 30 Day Avg. Volume: 1,854,805
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 0.73
• Enterprise Value/Ebitda: 6.90
• 1Y Price Target: $31.50
• Price Target Upside: -5.66% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $35.00 ▲(4.82% Upside)

ArcelorMittal's overall stock score is driven by strong earnings call insights and reasonable valuation, offset by financial performance challenges, particularly in cash flow. The technical analysis suggests a neutral market position, with no significant bullish or bearish signals.

ArcelorMittal Business Overview & Revenue Model

Company Description

ArcelorMittal 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 Money

ArcelorMittal generates revenue primarily through the sale of steel products, which include flat and long steel products, as well as stainless steel and other specialized products. The company's revenue model is bolstered by its integrated operations, allowing it to produce raw materials such as iron ore and coal, which reduces costs and increases margins. Key revenue streams include sales to automotive and construction sectors, which are significant consumers of steel. Additionally, the company benefits from strategic partnerships and joint ventures that enhance its market reach and operational efficiency. Fluctuations in steel prices and demand in global markets significantly impact its earnings, as does the company's ability to control costs and maintain efficient production processes.

ArcelorMittal Financial Statement Overview

Summary

ArcelorMittal shows strong gross profitability and a stable balance sheet, with a high gross profit margin of 78.1% and a moderate debt-to-equity ratio of 0.25. However, challenges include a declining revenue trend and significant cash flow concerns, with a 203.4% decline in free cash flow growth.

Income Statement

ArcelorMittal's income statement shows a mixed performance. The TTM gross profit margin is exceptionally high at 78.1%, indicating strong profitability from core operations. However, the net profit margin is relatively low at 4.1%, suggesting significant expenses or other financial obligations. Revenue has declined over the past periods, with a notable decrease of 5.3% in the TTM, reflecting challenges in maintaining sales growth. Despite this, the company maintains a positive EBIT and EBITDA margin, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.25, indicating moderate leverage. The return on equity (ROE) is 4.8%, which is modest but shows the company is generating returns on shareholders' investments. The equity ratio stands at 55.0%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals some concerns, particularly with free cash flow growth, which has significantly declined by 203.4% in the TTM. The operating cash flow to net income ratio is 0.21, indicating that operating cash flows are not fully covering net income, which could impact liquidity. However, the free cash flow to net income ratio of 18.3% suggests some level of cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.63B	62.44B	68.28B	79.84B	76.57B	53.27B
Gross Profit	47.38B	5.79B	4.74B	12.54B	19.23B	4.13B
EBITDA	5.02B	6.06B	4.65B	12.92B	19.15B	5.26B
Net Income	2.50B	1.34B	919.00M	9.30B	20.48B	-578.00M
Balance Sheet
Total Assets	98.88B	89.39B	93.92B	94.55B	90.51B	82.05B
Cash, Cash Equivalents and Short-Term Investments	5.36B	6.40B	7.69B	9.41B	4.37B	5.96B
Total Debt	13.73B	11.56B	10.68B	11.65B	8.40B	12.32B
Total Liabilities	42.41B	38.10B	37.85B	38.96B	39.17B	41.81B
Stockholders Equity	54.38B	49.22B	53.96B	53.15B	49.11B	38.28B
Cash Flow
Free Cash Flow	904.00M	447.00M	3.03B	6.74B	6.90B	1.64B
Operating Cash Flow	4.94B	4.85B	7.64B	10.20B	9.90B	4.08B
Investing Cash Flow	-4.78B	-4.99B	-5.85B	-4.48B	-340.00M	-2.01B
Financing Cash Flow	-924.00M	-680.00M	-3.67B	-477.00M	-10.90B	-1.50B

ArcelorMittal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 33.39 is above the 20-day moving average (MA) of 32.97, above the 50-day MA of 32.67, and above the 200-day MA of 28.61, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MT.

ArcelorMittal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUE	75 Outperform	$34.33B	26.71	6.28%	1.48%	-5.78%	-60.07%
RS	74 Outperform	$15.48B	21.51	9.93%	1.59%	-3.91%	-30.31%
STLD	74 Outperform	$19.62B	19.36	11.57%	1.46%	-5.51%	-45.07%
PKX	71 Outperform	$16.66B	45.50	0.92%	2.42%	-7.63%	-63.14%
MT	69 Neutral	$27.96B	10.34	4.72%	1.45%	-4.51%	―
X	64 Neutral		―		―	-14.79%	-88.78%
Sector *	61 Neutral	$10.31B	6.16	0.75%	2.94%	3.30%	-36.34%