ArcelorMittal (MT) AI Stock Analysis

• Market Cap: €21.82B
• Dividend Yield: 1.8%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.12
• Revenue Growth: -8.59%
• EPS Growth: 68.13%
• Country: NL
• Employees: 125,416
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 0.90
• Shares Outstanding: 852,809,750
• 10 Day Avg. Volume: 1,945,340
• 30 Day Avg. Volume: 1,654,545
• PEG Ratio: -0.06
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.33
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.68
• Enterprise Value/Ebitda: 1.58
• 1Y Price Target: €31.09
• Price Target Upside: 15.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 60 Neutral
• Price Target: €28.00 ▲(3.67%Upside)

ArcelorMittal's stock score of 60 reflects moderate financial performance and valuation. The company faces challenges with declining revenue and profit margins, impacting profitability. Technical indicators suggest a lack of strong momentum. Valuation is reasonable, offering modest appeal to income-focused investors.

Positive Factors

Acquisition

ArcelorMittal's acquisition of the remaining 50% of the Calvert joint venture is anticipated to be highly beneficial both financially and strategically.

Financial Performance

ArcelorMittal books a $1.5 billion gain from the acquisition, which reflects a positive financial outcome for the company.

Growth Strategy

ArcelorMittal is focusing on growth and capital returns at an attractive valuation.

Negative Factors

Demand Recession

A significant demand recession could more than offset any potential positive impacts of increased EU fiscal spending and the EU 'Steel and Metals Action Plan'.

Global Growth Risks

Steel equities are expected to remain under pressure due to global growth risks and trade disputes.

Global Risks

Potential risks to global growth from US tariffs are currently overwhelming any sector-positive developments, putting pressure on steel equities.

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 manufacture and sale of steel products to industries like automotive, construction, and machinery. The company operates an integrated business model, which includes owning and managing its raw material supply through its mining operations. This vertical integration allows ArcelorMittal to control costs and ensure a steady supply of essential materials such as iron ore and coal. The company also engages in strategic partnerships and joint ventures globally to expand its market reach and enhance its product offerings. Additionally, ArcelorMittal invests in research and development to innovate and improve the quality and sustainability of its steel products, thus maintaining a competitive edge in the industry.

ArcelorMittal Financial Statement Overview

Summary

ArcelorMittal exhibits moderate financial health with some areas of concern. Revenue and profit margins show a declining trend, impacting overall profitability. The balance sheet remains stable with manageable leverage, but ROE is declining. Cash flow from operations is a positive aspect, but free cash flow needs improvement. The company faces challenges in maintaining growth and profitability in a competitive steel industry.

Income Statement

ArcelorMittal's income statement shows a mixed performance. The company has a declining revenue trend, with a significant drop from 2022 to 2023, and further into TTM (Trailing-Twelve-Months). Gross profit margin improved in TTM, but the net profit margin declined, indicating cost pressures. The EBIT and EBITDA margins suggest operational challenges, though they are recovering from previous lows.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is manageable, indicating reasonable leverage. Stockholders' equity remained stable, and the equity ratio suggests a solid asset base. However, the return on equity has weakened over the period, pointing to declining profitability.

Cash Flow

Cash flow analysis reveals some strengths in operational cash flow, which remains positive. However, free cash flow growth has been inconsistent, with fluctuations observed in recent periods. The operating cash flow to net income ratio indicates operational efficiency, but free cash flow to net income ratio is less favorable.

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	46.37B	5.79B	4.74B	12.54B	19.23B	4.13B
EBITDA	6.02B	6.06B	4.65B	14.24B	19.15B	5.26B
Net Income	1.21B	1.34B	919.00M	9.30B	20.48B	-578.00M
Balance Sheet
Total Assets	91.45B	89.39B	93.92B	94.55B	90.51B	82.05B
Cash, Cash Equivalents and Short-Term Investments	5.32B	6.40B	7.69B	9.41B	4.37B	5.96B
Total Debt	12.05B	11.56B	10.68B	11.65B	8.40B	12.32B
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	462.00M	447.00M	3.03B	6.74B	6.90B	1.64B
Operating Cash Flow	4.60B	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	403.00M	-680.00M	-3.67B	-477.00M	-10.90B	-1.50B

ArcelorMittal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.01
• 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 NL:MT, the sentiment is Positive. The current price of 27.01 is above the 20-day moving average (MA) of 26.57, above the 50-day MA of 26.46, and above the 200-day MA of 24.66, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 68.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:MT.

ArcelorMittal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MT	60 Neutral	€21.82B	16.91	2.57%	1.80%	-8.59%	68.13%
Sector *	43 Neutral	AU$1.35B	-6.12	-40.62%	4.33%	-4.78%	-43.21%
0LO9		€574.12M	―	-2.17%	1.81%	―	―
0OLF		€1.93B	8.44	6.92%	6.36%	―	―