ENXTAM:MT

Stock Analysis Report

Executive Summary

ArcelorMittal, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia, and Africa.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has ArcelorMittal's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.2%

MT

4.2%

NL Metals and Mining

3.5%

NL Market


1 Year Return

-51.5%

MT

-25.5%

NL Metals and Mining

-19.6%

NL Market

Return vs Industry: MT underperformed the Dutch Metals and Mining industry which returned -27.6% over the past year.

Return vs Market: MT underperformed the Dutch Market which returned -21.1% over the past year.


Shareholder returns

MTIndustryMarket
7 Day10.2%4.2%3.5%
30 Day-17.5%-6.1%-3.9%
90 Day-37.4%-21.4%-21.1%
1 Year-51.0%-51.5%-20.5%-25.5%-16.3%-19.6%
3 Year-57.1%-57.6%-6.1%-18.6%0.8%-10.2%
5 Year-54.0%-65.3%20.5%-4.7%12.8%-9.0%

Price Volatility Vs. Market

How volatile is ArcelorMittal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ArcelorMittal undervalued compared to its fair value and its price relative to the market?

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MT (€9.54) is trading below our estimate of fair value (€14.89)

Significantly Below Fair Value: MT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MT is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: MT is unprofitable, so we can't compare its PE Ratio to the Dutch market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MT is good value based on its PB Ratio (0.3x) compared to the XE Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is ArcelorMittal forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

65.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.2%).

Earnings vs Market: MT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MT's is expected to become profitable in the next 3 years.

Revenue vs Market: MT's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: MT's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MT's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has ArcelorMittal performed over the past 5 years?

41.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MT is currently unprofitable.

Growing Profit Margin: MT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MT is unprofitable, but has reduced losses over the past 5 years at a rate of 41.6% per year.

Accelerating Growth: Unable to compare MT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MT is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-9.8%).


Return on Equity

High ROE: MT has a negative Return on Equity (-5.91%), as it is currently unprofitable.


Next Steps

Financial Health

How is ArcelorMittal's financial position?


Financial Position Analysis

Short Term Liabilities: MT's short term assets ($28.6B) exceed its short term liabilities ($21.3B).

Long Term Liabilities: MT's short term assets ($28.6B) exceed its long term liabilities ($26.1B).


Debt to Equity History and Analysis

Debt Level: MT's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: MT's debt to equity ratio has reduced from 42.3% to 32.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 38% per year.


Next Steps

Dividend

What is ArcelorMittal's current dividend yield, its reliability and sustainability?

2.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MT's dividend (2.91%) is higher than the bottom 25% of dividend payers in the Dutch market (2.65%).

High Dividend: MT's dividend (2.91%) is low compared to the top 25% of dividend payers in the Dutch market (7.23%).


Stability and Growth of Payments

Stable Dividend: MT's dividend payments have been volatile in the past 10 years.

Growing Dividend: MT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: MT is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: MT's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Lakshmi Mittal (69yo)

44.25s

Tenure

US$6,153,000

Compensation

Mr. Lakshmi Nivas Mittal, B.Com., serves as the Group Chairman and Group Chief Executive of Arcelormittal Mining. He serves as the Chairman of the Board and Chief Executive Officer of ArcelorMittal (altern ...


CEO Compensation Analysis

Compensation vs Market: Lakshmi's total compensation ($USD6.15M) is above average for companies of similar size in the Dutch market ($USD4.71M).

Compensation vs Earnings: Lakshmi's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Lakshmi Mittal
Chairman & CEO44.25yrsUS$6.15m0.028% $2.7m
Aditya Mittal
President & CFO2.08yrsUS$237.00k0.012% $1.1m
Daniel Fairclough
Head of Investor Relations & VP of Corporate Financeno datano datano data
Brian Aranha
EVP, Head of Strategy & CTO of R&Dno datano datano data
Paul Weigh
Head of Media Relationsno datano datano data
Bart Wille
Executive VP & Head of Human Resources2.25yrsno datano data
Augustine Kochuparampil
VP & CEO of Long Products Europe6.75yrsno datano data
Gregory Ludkovsky
Head of Global Research & Development and VPno datano datano data
Vijaj Goyal
VP & CEO of Arcelormittal Downstream Solutions3.5yrsno datano data
Ondra Otradovec
Head of Mergers & Acquisitionno datano datano data

3.5yrs

Average Tenure

63yo

Average Age

Experienced Management: MT's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lakshmi Mittal
Chairman & CEO44.25yrsUS$6.15m0.028% $2.7m
Michel Alphonse Léon Wurth
Director5.92yrsUS$171.00kno data
Bruno Lafont
Lead Independent Director2.92yrsUS$280.00kno data
Tye Burt
Non-Executive & Independent Director7.92yrsUS$183.00kno data
Karel de Gucht
Non-Executive & Independent Director3.92yrsUS$191.00k0.00020% $19.3k
Vanisha Mittal Bhatia
Non-Executive & Non-Independent Director15.33yrsUS$171.00k0.00084% $81.1k
Suzanne Nimocks
Non-Executive & Independent Director9.25yrsUS$183.00kno data
Karyn Ovelmen
Non-Executive & Independent Director4.92yrsUS$204.00kno data
Jeannot Krecké
Non-Executive Director10.25yrsUS$171.00kno data

7.9yrs

Average Tenure

63yo

Average Age

Experienced Board: MT's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ArcelorMittal's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ArcelorMittal
  • Ticker: MT
  • Exchange: ENXTAM
  • Founded: 1976
  • Industry: Steel
  • Sector: Materials
  • Market Cap: €9.657b
  • Shares outstanding: 1.01b
  • Website: https://corporate.arcelormittal.com

Number of Employees


Location

  • ArcelorMittal
  • 24-26, Boulevard d’Avranches
  • Luxembourg City
  • 1160
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARRJXTRA (XETRA Trading Platform)NY REGISTRY SHS NEW(POST REV SPLT)DEEURAug 1997
MTNYSE (New York Stock Exchange)NY REGISTRY SHS NEW(POST REV SPLT)USUSDAug 1997
ARRJDB (Deutsche Boerse AG)NY REGISTRY SHS NEW(POST REV SPLT)DEEURAug 1997
MT NBMV (Bolsa Mexicana de Valores)NY REGISTRY SHS NEW(POST REV SPLT)MXMXNAug 1997
MTENXTAM (Euronext Amsterdam)YesCommon StockNLEURAug 1997
MTLBDL (Bourse de Luxembourg)YesCommon StockLUEURAug 1997
MTSBME (Bolsas y Mercados Espanoles)YesCommon StockESEURAug 1997
ARRDDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1997
ARRDXTRA (XETRA Trading Platform)YesCommon StockDEEURAug 1997
0RP9LSE (London Stock Exchange)YesCommon StockGBEURAug 1997
AMSY.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 1997
MTSWX (SIX Swiss Exchange)YesCommon StockCHCHFAug 1997
MT-UETLX (Eurotlx)YesCommon StockITEURAug 1997
MTWBAG (Wiener Boerse AG)YesCommon StockATEURAug 1997
ARRDDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURAug 1997
MTSEBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURAug 1997
MTABATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURAug 1997
32313400BDL (Bourse de Luxembourg)NPV (POST STOCK SPLIT)LUEURFeb 2017

Biography

ArcelorMittal, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia, and Africa. It operates through five segments: NAFTA, Brazil, Europe, ACIS, and Mining. The company produces finished and semi-finished steel products with various specifications. Its principal steel products include semi-finished flat products; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, and tinplate and color coated coils and sheets; semi-finished long products, such as 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 provides its steel products to the automotive, appliance, engineering, construction, energy, and machinery industries. The company sells its products through a centralized marketing organization to customers in approximately 160 countries, as well as distributors and processors. It has iron ore mining activities in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, Ukraine, and the United States; and coal mining activities in Kazakhstan and the United States. The company was founded in 1976 and is headquartered in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 20:37
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.