ArcelorMittal (MT) AI Stock Analysis

• Market Cap: €30.04B
• Dividend Yield: 1.24%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.13
• Revenue Growth: -5.35%
• EPS Growth: N/A
• Country: NL
• Employees: 125,416
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.43
• Shares Outstanding: 775,000,000
• 10 Day Avg. Volume: 2,532,970
• 30 Day Avg. Volume: 2,186,907
• 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: €41.95
• Price Target Upside: 1.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €41.00 ▼(-0.70% Downside)

ArcelorMittal's stock is supported by strong technical momentum and reasonable valuation. However, financial performance is mixed, with strong profitability offset by revenue volatility and cash flow challenges. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Flow Growth

Strong cash flow growth indicates improved cash generation capabilities, providing the company with more resources for reinvestment and debt reduction, enhancing long-term financial stability.

Stable Balance Sheet

A stable balance sheet with moderate leverage enhances financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Market Position

As the world's leading steel and mining company, ArcelorMittal benefits from significant scale and market presence, providing competitive advantages in pricing, distribution, and customer reach.

Negative Factors

Revenue Decline

Declining revenue can signal weakening demand or competitive pressures, potentially impacting long-term growth prospects and profitability if not addressed.

Profitability Margins

Modest profitability margins suggest challenges in cost management or pricing power, which could limit the company's ability to generate sustainable profits over time.

Operational Efficiency

Decreasing operational efficiency, as indicated by declining EBIT and EBITDA margins, may reflect rising costs or inefficiencies, potentially affecting long-term competitiveness and profitability.

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 products. Its revenue model is built on selling a diverse array of steel products to various industries, including automotive, construction, and energy. The company benefits from economies of scale due to its large production capacity and global presence. Key revenue streams include flat steel products, long steel products, and mining operations, which provide iron ore and metallurgical coal. Additionally, ArcelorMittal has strategic partnerships with various companies in the automotive and construction sectors, enhancing its market position and ensuring a steady demand for its products. Market dynamics, such as fluctuations in steel prices and demand across different sectors, significantly influence its profitability.

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	61.09B	62.44B	68.28B	79.84B	76.57B	53.27B
Gross Profit	46.81B	5.79B	4.74B	12.54B	19.23B	4.13B
EBITDA	5.03B	6.06B	4.65B	14.24B	20.91B	5.26B
Net Income	2.58B	1.34B	919.00M	9.30B	20.48B	-578.00M
Balance Sheet
Total Assets	98.77B	89.39B	93.92B	94.55B	90.51B	82.05B
Cash, Cash Equivalents and Short-Term Investments	5.73B	6.40B	7.69B	9.41B	4.37B	5.96B
Total Debt	14.87B	11.56B	10.68B	11.65B	8.40B	12.32B
Total Liabilities	42.09B	38.10B	37.85B	38.96B	39.17B	41.81B
Stockholders Equity	54.60B	49.22B	53.96B	53.15B	49.11B	38.28B
Cash Flow
Free Cash Flow	58.00M	447.00M	3.03B	6.74B	6.90B	1.64B
Operating Cash Flow	4.28B	4.85B	7.64B	10.20B	9.90B	4.08B
Investing Cash Flow	-4.42B	-4.99B	-5.85B	-4.48B	-340.00M	-2.01B
Financing Cash Flow	634.00M	-680.00M	-3.67B	-477.00M	-10.90B	-1.50B

ArcelorMittal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.29
• 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 41.29 is above the 20-day moving average (MA) of 39.21, above the 50-day MA of 36.75, and above the 200-day MA of 30.24, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 70.77 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	73 Outperform	€30.04B	13.52	4.81%	1.24%	-5.35%	―
APAM	65 Neutral	€2.52B	-320.36	-0.24%	5.41%	-2.24%	-102.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AMG	53 Neutral	€946.31M	31.02	6.84%	1.46%	9.94%	―