ArcelorMittal (MT) AI Stock Analysis

• Market Cap: €24.30B
• Dividend Yield: 1.52%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.18
• Revenue Growth: -5.35%
• EPS Growth: N/A
• Country: NL
• Employees: 125,416
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.99
• Shares Outstanding: 852,809,750
• 10 Day Avg. Volume: 1,719,959
• 30 Day Avg. Volume: 1,549,029
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €31.95
• Price Target Upside: 8.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: €30.00 ▲(2.04% Upside)

ArcelorMittal's overall stock score is driven primarily by its solid financial foundation and attractive valuation. The company's strong cash flow growth and stable balance sheet are significant positives. However, challenges in revenue growth and profitability margins, along with neutral technical indicators, temper the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Negative Factors

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 production and sale of steel and mining products. Key revenue streams include the sale of flat and long steel products, which are used in various sectors including construction and automotive manufacturing. The company also earns income from its mining operations, which provide iron ore and metallurgical coal necessary for steel production. Significant partnerships with large industrial companies and involvement in joint ventures enhance its market reach and operational efficiency. Additionally, fluctuations in global steel prices, demand from key industries, and the company's ability to manage costs effectively contribute to its overall earnings.

ArcelorMittal Financial Statement Overview

Summary

ArcelorMittal's financial statements present a mixed picture. The company demonstrates strong cash flow growth and a stable balance sheet, but its income statement reveals challenges in revenue growth and profitability margins. The steel industry's cyclical nature may contribute to these fluctuations. Overall, the company maintains a solid financial foundation but faces operational efficiency challenges.

Income Statement

ArcelorMittal's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 100%, which is atypical and suggests potential data issues. The net profit margin is modest at 4.11%, and there is a concerning revenue decline of 0.53% in the TTM period. Historical data shows fluctuating revenue growth, with a significant drop in 2023. Profitability metrics like EBIT and EBITDA margins have decreased over time, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.25 in the TTM period, indicating moderate leverage. Return on equity is relatively low at 4.80%, suggesting limited profitability from equity investments. The equity ratio is healthy, showing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth of 95.67% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.21, suggesting efficient conversion of net income into cash. However, the free cash flow to net income ratio is lower at 0.18, indicating potential reinvestment needs or capital expenditures.

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	60.63B	5.79B	4.74B	12.54B	19.23B	4.13B
EBITDA	5.00B	6.06B	4.65B	14.24B	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: 29.40
• 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 29.4 is above the 20-day moving average (MA) of 28.89, above the 50-day MA of 28.60, and above the 200-day MA of 26.34, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.70 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
APAM	70 Outperform	1.92B	10.18	6.89%	7.11%	-0.46%	182.29%
MT	68 Neutral	€24.30B	9.91	4.81%	1.52%	-5.35%	―
AMG	66 Neutral	835.78M	94.18	1.81%	0.71%	5.17%	0.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%