ArcelorMittal (MT) AI Stock Analysis

• Market Cap: €21.89B
• Dividend Yield: 1.68%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.17
• Revenue Growth: -5.35%
• EPS Growth: N/A
• Country: NL
• Employees: 125,416
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 2.02
• Shares Outstanding: 852,809,750
• 10 Day Avg. Volume: 1,661,083
• 30 Day Avg. Volume: 1,723,951
• PEG Ratio: 0.24
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 40.94
• 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: €31.93
• Price Target Upside: 16.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 65 Neutral
• Price Target: €29.00 ▲(5.38% Upside)

ArcelorMittal's overall stock score is driven by a stable financial foundation and attractive valuation, despite operational challenges and bearish technical signals. The low P/E ratio suggests potential undervaluation, while technical indicators highlight current market pressures.

Positive Factors

Acquisition

The acquisition of the remaining 50% of the Calvert JV is seen as a positive outcome, contributing to an exceptional gain and increasing group EBITDA.

Analyst Rating

Analyst reiterates a Buy rating with a price objective of EUR31, indicating confidence in the stock's potential.

Capital Investment

ArcelorMittal continues its disciplined capital investment, focusing on growth through the cycle and conservative decarbonisation.

Negative Factors

Global Trade Uncertainty

The uncertainty surrounding global trade negatively impacts European and global manufacturing, affecting steel demand.

Tariffs Impact

Tariffs are overall negative for steel demand and price, even if higher prices in the US offset the direct impact on North America.

Trade Tensions

Company outlook for steel consumption has been revised down due to trade tensions, impacting ArcelorMittal's demand estimates.

ArcelorMittal Business Overview & Revenue Model

Company Description

ArcelorMittal (MT) is a leading global steel and mining company, headquartered in Luxembourg. It operates in various sectors, including automotive, construction, household appliances, and packaging. The company produces a wide range of steel products, including flat steel, long steel, and stainless steel, designed to meet the diverse needs of its customers worldwide. ArcelorMittal is also involved in mining operations, ensuring a reliable supply of raw materials for its steel production.

How the Company Makes Money

ArcelorMittal makes money primarily through the production and sale of steel and steel products. The company's revenue streams are diversified across several sectors, such as automotive, construction, and energy, which require different types of steel products for their operations. ArcelorMittal's integrated business model includes both steel manufacturing and mining operations, allowing it to control the supply chain from raw material extraction to the final product. This vertical integration helps the company optimize costs and maintain a competitive edge in the market. Additionally, ArcelorMittal generates revenue through strategic partnerships and joint ventures, which enhance its market presence and expand its geographical reach. Fluctuations in global steel demand, commodity prices, and economic conditions are significant factors affecting the company's earnings.

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	60.63B	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: Negative
• Last Price: 27.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:MT, the sentiment is Negative. The current price of 27.52 is below the 20-day moving average (MA) of 28.37, above the 50-day MA of 27.44, and above the 200-day MA of 25.51, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 6.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€1.79B	9.49	5.98%	7.92%	-0.46%	182.29%
MT	65 Neutral	€21.89B	8.92	4.81%	1.68%	-5.35%	―
AMG	64 Neutral	€714.51M	80.51	1.94%	1.66%	5.17%	―
Sector *	44 Neutral	C$864.63M	-6.77	-14.90%	2.78%	16.54%	-27.01%