ArcelorMittal (MT) AI Stock Analysis

• Market Cap: €21.85B
• Dividend Yield: 1.75%
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.14
• Revenue Growth: -8.59%
• EPS Growth: 68.13%
• Country: NL
• Employees: 125,416
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 0.92
• Shares Outstanding: 852,809,750
• 10 Day Avg. Volume: 2,048,388
• 30 Day Avg. Volume: 2,683,877
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €31.86
• Price Target Upside: 19.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

ArcelorMittal has a moderate overall stock score driven by stable financial performance but with challenges in revenue and profit margins. The technical analysis suggests mixed momentum, with the stock price slightly above key moving averages but signs of being overbought. The valuation is fair, offering a reasonable P/E ratio and moderate dividend yield. The absence of significant recent earnings call data or corporate events limits further insights.

Positive Factors

Earnings Growth

Strategic projects are expected to add significant mid-cycle EBITDA, supporting medium-term earnings growth.

Financial Performance

Strong spread recovery supports the outlook for Q2.

Shareholder Value

Continuation of the share buyback program reflects an ongoing commitment to capital return policy.

Negative Factors

Market Uncertainty

ArcelorMittal has expressed caution about the short-term outlook due to global trade uncertainty.

Steel Market Volatility

Continuing volatility for steel is expected due to market expectations for global trade.

Tariff Impact

Tariff uncertainty is overwhelming the sector, impacting sentiment.

ArcelorMittal Business Overview & Revenue Model

Company Description

ArcelorMittal (MT) is a global leader in the steel and mining industry, operating in over 60 countries with a presence in all major steel markets. The company is involved in the production of a wide range of steel products, including flat and long steel products, stainless steel, and tubes. It serves various sectors such as automotive, construction, household appliances, and packaging. ArcelorMittal is committed to sustainable steel production and innovation, focusing on reducing its carbon footprint and improving its production processes.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
62.44B	68.28B	79.84B	76.57B	53.27B
	Gross Profit
5.79B	4.74B	12.54B	19.23B	4.13B
	EBIT
3.31B	2.34B	10.27B	16.98B	-1.32B
	EBITDA
6.06B	4.65B	14.24B	19.15B	5.26B
	Net Income Common Stockholders
1.34B	919.00M	9.30B	20.48B	-578.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.40B	7.69B	9.41B	4.37B	5.96B
	Total Assets
89.39B	93.92B	94.55B	90.51B	82.05B
	Total Debt
11.56B	10.68B	11.65B	8.40B	12.32B
	Net Debt
5.16B	3.00B	2.24B	4.03B	6.36B
	Total Liabilities
38.10B	37.85B	38.96B	39.17B	41.81B
	Stockholders Equity
49.22B	53.96B	53.15B	49.11B	38.28B
Cash Flow		Free Cash Flow
447.00M	3.03B	6.74B	6.90B	1.64B
	Operating Cash Flow
4.85B	7.64B	10.20B	9.90B	4.08B
	Investing Cash Flow
-4.99B	-5.85B	-4.48B	-340.00M	-2.01B
	Financing Cash Flow
-680.00M	-3.67B	-477.00M	-10.90B	-1.50B

ArcelorMittal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 26.56 is above the 20-day moving average (MA) of 24.73, below the 50-day MA of 26.85, and above the 200-day MA of 23.54, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 81.52 is Negative, 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	€1.82B	8.04	6.92%	6.70%	-1.84%	345.98%
MT	64 Neutral	€21.85B	17.13	2.57%	1.75%	-8.59%	68.13%
AMG	55 Neutral	€496.15M	―	-2.17%	2.41%	-3.12%	-140.31%
Sector *	49 Neutral	$1.95B	-1.21	-21.28%	3.72%	1.18%	-30.47%