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ArcelorMittal

ENXTAM:MT
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MT
ENXTAM
€19B
Market Cap
  1. Home
  2. NL
  3. Materials
Company description

ArcelorMittal, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia, and Africa. The last earnings update was 20 days ago. More info.


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MT Share Price and Events
7 Day Returns
2.2%
ENXTAM:MT
1.6%
Europe Metals and Mining
3.6%
NL Market
1 Year Returns
-28.2%
ENXTAM:MT
-10%
Europe Metals and Mining
3.6%
NL Market
MT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ArcelorMittal (MT) 2.2% -5.1% -1.5% -28.2% 57% -44%
Europe Metals and Mining 1.6% 0.9% 8.4% -10% 60.5% 15.6%
NL Market 3.6% 3.3% 8.6% 3.6% 25% 31.2%
1 Year Return vs Industry and Market
  • MT underperformed the Metals and Mining industry which returned -10% over the past year.
  • MT underperformed the Market in Netherlands which returned 3.6% over the past year.
Price Volatility
MT
Industry
5yr Volatility vs Market

Value

 Is ArcelorMittal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ArcelorMittal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for ArcelorMittal.

ENXTAM:MT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year NL Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTAM:MT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NL Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.116 (1 + (1- 26.01%) (57.1%))
1.394
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.39
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.37% + (1.394 * 5.96%)
8.68%

Discounted Cash Flow Calculation for ENXTAM:MT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ArcelorMittal is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ENXTAM:MT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.68%)
2019 3,459.15 Analyst x12 3,182.97
2020 3,098.91 Analyst x11 2,623.82
2021 3,479.45 Analyst x4 2,710.81
2022 3,765.29 Est @ 8.22% 2,699.29
2023 3,985.99 Est @ 5.86% 2,629.37
2024 4,153.96 Est @ 4.21% 2,521.39
2025 4,281.11 Est @ 3.06% 2,391.10
2026 4,377.59 Est @ 2.25% 2,249.77
2027 4,451.50 Est @ 1.69% 2,105.10
2028 4,509.06 Est @ 1.29% 1,962.07
Present value of next 10 years cash flows $25,075.70
ENXTAM:MT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4,509.06 × (1 + 0.37%) ÷ (8.68% – 0.37%)
$54,482.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $54,482.06 ÷ (1 + 8.68%)10
$23,707.35
ENXTAM:MT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $25,075.70 + $23,707.35
$48,783.05
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $48,783.05 / 1,009.57
$48.32
ENXTAM:MT Discount to Share Price
Calculation Result
Exchange Rate USD/EUR
(Reporting currency to currency of ENXTAM:MT)
0.883
Value per Share
(EUR)
= Value per Share in USD x Exchange Rate (USD/EUR)
= $48.32 x 0.883
€42.68
Value per share (EUR) From above. €42.68
Current discount Discount to share price of €19.13
= -1 x (€19.13 - €42.68) / €42.68
55.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ArcelorMittal is available for.
Intrinsic value
>50%
Share price is €19.13 vs Future cash flow value of €42.68
Current Discount Checks
For ArcelorMittal to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ArcelorMittal's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ArcelorMittal's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ArcelorMittal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ArcelorMittal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTAM:MT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $5.07
ENXTAM:MT Share Price ** ENXTAM (2019-03-15) in EUR €19.13
ENXTAM:MT Share Price converted to USD reporting currency Exchange rate (EUR/ USD) 1.132 $21.66
Europe Metals and Mining Industry PE Ratio Median Figure of 108 Publicly-Listed Metals and Mining Companies 9.25x
Netherlands Market PE Ratio Median Figure of 81 Publicly-Listed Companies 15.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ArcelorMittal.

ENXTAM:MT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTAM:MT Share Price ÷ EPS (both in USD)

= 21.66 ÷ 5.07

4.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ArcelorMittal is good value based on earnings compared to the Europe Metals and Mining industry average.
  • ArcelorMittal is good value based on earnings compared to the Netherlands market.
Price based on expected Growth
Does ArcelorMittal's expected growth come at a high price?
Raw Data
ENXTAM:MT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
-10.5%per year
Europe Metals and Mining Industry PEG Ratio Median Figure of 58 Publicly-Listed Metals and Mining Companies 0.59x
Netherlands Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

ENXTAM:MT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.27x ÷ -10.5%

-0.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ArcelorMittal earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ArcelorMittal's assets?
Raw Data
ENXTAM:MT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $41.52
ENXTAM:MT Share Price * ENXTAM (2019-03-15) in EUR €19.13
ENXTAM:MT Share Price converted to USD reporting currency Exchange rate (EUR/ USD) 1.132 $21.66
Europe Metals and Mining Industry PB Ratio Median Figure of 213 Publicly-Listed Metals and Mining Companies 0.91x
Netherlands Market PB Ratio Median Figure of 103 Publicly-Listed Companies 1.79x
ENXTAM:MT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTAM:MT Share Price ÷ Book Value per Share (both in USD)

= 21.66 ÷ 41.52

0.52x

* Primary Listing of ArcelorMittal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ArcelorMittal is good value based on assets compared to the Europe Metals and Mining industry average.
X
Value checks
We assess ArcelorMittal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. ArcelorMittal has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-10.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ArcelorMittal expected to grow at an attractive rate?
  • ArcelorMittal's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.4%.
Growth vs Market Checks
  • ArcelorMittal's earnings are expected to decrease over the next 1-3 years, this is below the Netherlands market average.
  • ArcelorMittal's revenues are expected to decrease over the next 1-3 years, this is below the Netherlands market average.
Annual Growth Rates Comparison
Raw Data
ENXTAM:MT Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTAM:MT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts -10.5%
ENXTAM:MT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts -0.8%
Europe Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 1.5%
Europe Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1%
Netherlands Market Earnings Growth Rate Market Cap Weighted Average 7.5%
Netherlands Market Revenue Growth Rate Market Cap Weighted Average 2.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTAM:MT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTAM:MT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 75,011 7,185 3,867 10
2020-12-31 73,951 6,675 3,976 20
2019-12-31 75,218 7,263 3,990 19
ENXTAM:MT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 76,033 4,196 5,149
2018-09-30 75,416 4,911 4,995
2018-06-30 74,533 5,040 5,301
2018-03-31 71,779 5,022 4,758
2017-12-31 68,679 4,563 4,568
2017-09-30 65,095 3,331 3,932
2017-06-30 61,979 3,444 3,407
2017-03-31 59,478 3,099 3,197
2016-12-31 56,791 2,708 1,779
2016-09-30 56,646 2,629 -5,310
2016-06-30 57,712 2,226 -6,701
2016-03-31 59,859 2,376 -7,634

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ArcelorMittal's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • ArcelorMittal's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTAM:MT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from ArcelorMittal Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTAM:MT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.89 5.00 2.54 6.00
2020-12-31 3.90 5.28 3.07 14.00
2019-12-31 3.89 4.66 2.91 13.00
ENXTAM:MT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 5.07
2018-09-30 4.91
2018-06-30 5.21
2018-03-31 4.67
2017-12-31 4.48
2017-09-30 3.86
2017-06-30 3.19
2017-03-31 3.02
2016-12-31 1.87
2016-09-30 -5.96
2016-06-30 -7.71
2016-03-31 -9.89

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ArcelorMittal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ArcelorMittal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ArcelorMittal has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ArcelorMittal performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ArcelorMittal's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ArcelorMittal has delivered over 20% year on year earnings growth in the past 5 years.
  • ArcelorMittal's 1-year earnings growth is less than its 5-year average (12.7% vs 49.9%)
  • ArcelorMittal's earnings growth has exceeded the Europe Metals and Mining industry average in the past year (12.7% vs 10%).
Earnings and Revenue History
ArcelorMittal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ArcelorMittal Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTAM:MT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 76,033.00 5,149.00 2,528.00 290.00
2018-09-30 75,416.00 4,995.00 2,444.00 278.00
2018-06-30 74,533.00 5,301.00 2,588.00 314.00
2018-03-31 71,779.00 4,758.00 2,444.00 278.00
2017-12-31 68,679.00 4,568.00 2,444.00 278.00
2017-09-30 65,095.00 3,932.00 2,398.00 239.00
2017-06-30 61,979.00 3,407.00 2,437.00 262.00
2017-03-31 59,478.00 3,197.00 2,398.00 239.00
2016-12-31 56,791.00 1,779.00 2,398.00 239.00
2016-09-30 56,646.00 -5,310.00 2,713.00 227.00
2016-06-30 57,712.00 -6,701.00 2,385.00 332.00
2016-03-31 59,859.00 -7,634.00 2,713.00 227.00
2015-12-31 63,578.00 -7,946.00 2,715.00 227.00
2015-09-30 68,320.00 -2,229.00 3,294.00 259.00
2015-06-30 72,798.00 -1,496.00 3,281.00 109.00
2015-03-31 76,612.00 -1,623.00 3,294.00 259.00
2014-12-31 79,282.00 -1,100.00 3,294.00 259.00
2014-09-30 80,407.00 -1,415.00 3,228.00 270.00
2014-06-30 79,983.00 -1,630.00 3,181.00 301.00
2014-03-31 79,476.00 -2,462.00 3,228.00 270.00
2013-12-31 79,440.00 -2,602.00 3,300.00 270.00
2013-09-30 78,901.00 -4,946.00 3,511.00 285.00
2013-06-30 78,981.00 -5,600.00 3,352.00 286.00
2013-03-31 81,262.00 -3,723.00 3,511.00 285.00
2012-12-31 84,213.00 -3,367.00 3,724.00 285.00
2012-09-30 87,353.00 -739.00 3,428.00
2012-06-30 91,844.00 924.00 3,466.00 244.00
2012-03-31 94,492.00 1,205.00 3,428.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ArcelorMittal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ArcelorMittal used its assets more efficiently than the Europe Metals and Mining industry average last year based on Return on Assets.
  • ArcelorMittal has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ArcelorMittal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ArcelorMittal has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ArcelorMittal's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ArcelorMittal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ArcelorMittal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ArcelorMittal's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ArcelorMittal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ArcelorMittal Company Filings, last reported 2 months ago.

ENXTAM:MT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 44,108.00 12,483.00 2,172.00
2018-09-30 42,590.00 12,942.00 2,482.00
2018-06-30 42,335.00 13,519.00 2,943.00
2018-03-31 42,691.00 13,393.00 2,260.00
2017-12-31 40,855.00 12,928.00 2,574.00
2017-09-30 38,541.00 14,949.00 2,978.00
2017-06-30 36,252.00 14,156.00 2,048.00
2017-03-31 33,929.00 14,499.00 2,402.00
2016-12-31 32,325.00 13,674.00 2,501.00
2016-09-30 32,587.00 14,449.00 2,256.00
2016-06-30 32,005.00 15,142.00 2,289.00
2016-03-31 27,809.00 20,192.00 2,863.00
2015-12-31 27,570.00 19,786.00 4,002.00
2015-09-30 36,059.00 20,387.00 3,636.00
2015-06-30 39,833.00 21,271.00 4,611.00
2015-03-31 38,299.00 19,427.00 2,779.00
2014-12-31 45,160.00 19,797.00 3,893.00
2014-09-30 49,190.00 21,870.00 4,175.00
2014-06-30 52,224.00 21,834.00 4,214.00
2014-03-31 52,064.00 23,562.00 5,061.00
2013-12-31 53,173.00 22,322.00 6,072.00
2013-09-30 52,397.00 22,061.00 4,428.00
2013-06-30 51,663.00 23,083.00 6,751.00
2013-03-31 52,955.00 25,979.00 7,977.00
2012-12-31 50,466.00 26,313.00 4,402.00
2012-09-30 58,843.00 26,617.00 2,990.00
2012-06-30 58,283.00 26,483.00 4,386.00
2012-03-31 61,286.00 28,514.00 4,934.00
  • ArcelorMittal's level of debt (28.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (42% vs 28.3% today).
  • Debt is well covered by operating cash flow (33.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.3x coverage).
X
Financial health checks
We assess ArcelorMittal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ArcelorMittal has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.92%
Current annual income from ArcelorMittal dividends. Estimated to be 3% next year.
If you bought €2,000 of ArcelorMittal shares you are expected to receive €18 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ArcelorMittal's pays a lower dividend yield than the bottom 25% of dividend payers in Netherlands (2.34%).
  • ArcelorMittal's dividend is below the markets top 25% of dividend payers in Netherlands (5.65%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTAM:MT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Europe Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 6%
Netherlands Market Average Dividend Yield Market Cap Weighted Average of 69 Stocks 4%
Netherlands Minimum Threshold Dividend Yield 10th Percentile 1.7%
Netherlands Bottom 25% Dividend Yield 25th Percentile 2.3%
Netherlands Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTAM:MT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.93 8.00
2020-12-31 0.72 18.00
2019-12-31 0.34 11.00
ENXTAM:MT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.200 0.896
2019-02-07 0.200 0.887
2018-04-06 0.100 0.360
2016-11-08 0.000 0.000
2016-08-02 0.000 0.000
2016-07-29 0.000 0.000
2016-05-06 0.000 0.000
2015-11-06 0.000 0.000
2015-02-13 0.600 2.333
2014-11-07 0.600 1.838
2014-02-07 0.600 1.351
2013-11-07 0.600 1.180
2013-05-07 0.600 1.507
2012-10-31 0.600 1.341
2012-02-07 2.250 4.607
2011-02-08 2.250 3.096
2009-10-28 2.250 2.105
2009-03-18 2.250 2.391

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ArcelorMittal is not paying a notable dividend for Netherlands, therefore no need to check if the payments are stable.
  • ArcelorMittal is not paying a notable dividend for Netherlands, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of ArcelorMittal's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of ArcelorMittal's dividends as it is not paying a notable one for Netherlands.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess ArcelorMittal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ArcelorMittal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ArcelorMittal has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ArcelorMittal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lakshmi Mittal
COMPENSATION $4,379,000
AGE 68
TENURE AS CEO 43.2 years
CEO Bio

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 (alternate name: Mittal Steel Company NV). He serves as the Chairman and Chief Executive Officer of ArcelorMittal France S.A. Mr. Mittal has been Chairman at ArcelorMittal since May 13, 2008 and served as its Managing Director of Operations. He serves as the Chief Executive Officer of ISG Riverdale, Inc. He serves as a Member of the Group Management Board at ArcelorMittal USA LLC and has been its Chairman since May 2008. He founded JSC ArcelorMittal Temirtau in 1976. Mr. Mittal began his career working in his family’s steelmaking business in India before moving to Indonesia in 1976 to set up a small steel company that over time grew to become ArcelorMittal, the world’s leading steel company and one of the foremost industrial companies in the world. He serves as the Chief Executive Officer and the President of the Board at Arcelormittal Steelton LLC, Isg Hennepin Inc., ISG Hibbing Inc., Incoal Company, ISG Railways Inc., ArcelorMittal Financial Services LLC and ArcelorMittal Lackawanna, LLC. He was also a member of the Eurogroup from July 2004 to June 2009. On February 1, 2012, Mr. Krecké retired from government and decided to end his active political career in order to pursue a range of different projects. He has been the Chairman of the Board and Managing Director of Operations at Arcelor Mittal since May 2008 and serves as its Chief Executive Officer, President and Member of Group Management Board. He is an Owner of Karrick Limited. Mr. Krecké is currently the CEO of Key International Strategy Services. He is widely recognized for the role he played in restructuring the steel industry towards a more consolidated and globalized model, pursuing and successfully integrating many acquisitions in North America, South America, Europe, South Africa and the CIS. He serves as the President of ArcelorMittal Annaba Spa. He served as President of Ispat Inland ULC. He served as Chief Executive Officer of JSC ArcelorMittal Temirtau. He served as the Chief Executive Officer at Mittal Steel Co. He served as the Chief Executive Officer of ArcelorMittal USA LLC. He served as the Chief Executive Officer of Mittal Steel Company NV. He has 35 years of experience in steel and related industries. He founded Ispat International and is responsible for the strategic direction and development of the business. He served as Member of the Group Management Board of Arcelor SA. He serves as the Chairman of the Board of Aperam S.A. He served as the Chief Executive Officer of Arcelor SA since November 2006. He served as President of the Management Board of Arcelor SA. Mr. Mittal serves as the Chairman of the Board of Aperam South America S.A and ArcelorMittal Canada Inc. He serves as the Chairman of JSC ArcelorMittal Temirtau, Ispat Inland Holdings Inc., Ispat Inland Inc. and Arcellor Mittal Canada, Inc. He served as Chairman of ArcelorMittal Steel Holdings AG. He served as Chairman and Director of Arcelor Mittal and LNM Holdings LNV. He served as the President of the Board of Directors of Arcelor SA. He has been a Non-Executive Director of Mittal Steel South Africa Ltd. since January 2002. He is a member of the boards of JSFC Sistema, of East West United Bank, of China Construction Bank Europe, of Calzedonia Finanziara S.A., Jan De Nul S.A. and Novenergia Holding Company S.A. Mr. Mittal serves as a Director of ISG Hibbing Inc.,ISG Hibbing Inc., ONGC Mittal Energy Services Ltd., Incoal Company, ArcelorMittal Financial Services LLC, Artha Limited; ISG Columbus Coatings LLC, ArcelorMittal Annaba Spa, Mittal Steel Temirtau JSC, Caribbean Ispat Limited; Consorcio Minero Benito Juarez Pena Colorada S.A.; Dunmurray Company Unlimited; Galmatias Limited; Intercommercial Bank Limited; Irish Ispat Limited; Ispat Canada Inc.; Ispat Europe Group S.A.; Ispat Germany GmbH; Ispat Hamburger Stahlwerke GmbH; Ispat Inland Holdings Inc.; Ispat Inland S.A.; Ispat International Limited; Ispat Karmet Holdings B.V.; Ispat Karmet JSC; Ispat Mexicana S.A. de C.V.; Ispat Shipping Limited; Ispat Stahlwerk Ruhrort GmbH; Ispat Unimetal; Ispat US Holdings B.V.; Ispat (US) Holdings Inc.; Ispat US Investments B.V.; Kent Wire (Ispat) Limited; LNM Capital Limited; LNM Holdings N.V.; LNM Holdings S.L.; LNM International Ventures Limited; LNM Internet Ventures Limited; Lucre Limited; Metique. Inc; Metique.com Limited; Nestor Limited; Nuav Limited; ArcelorMittal Canada Inc., Penna Colarada S.A. De C.V.; PT Ispat Indo; Tecvest Corporation N.V.; Tommyfield Limited; Trefileurope GmbH; Walker Wire (Ispat) Inc.; 3019693 Nova Scotia ULC and 9064-4816 Quebec Inc. Mr. Mittal has been a Director of ArcelorMittal and Mittal Steel Company NV since May 1997. He has been a Director of Aperam since December 2010. He has been an Independent Director of The Goldman Sachs Group, Inc. since June 28, 2008. He serves as a Member of Governing Board of Indian School of Business. He serves as President and Member of the Board of Directors at ISG Riverdale, Inc. He sits on the Advisory Board of the Kellogg School of Management in the United States and is a member of the Board of Trustees of Cleveland Clinic. He served as a Director of ICICI Bank Ltd. from May 3, 2002 to May 3, 2010. He served as a Member of Supervisory Board at ArcelorMittal Ostrava a.s. (known as Mittal Steel Ostrava and Formerly known as NOVA HUT a.s.). He served as an Independent Non-Executive Director of Airbus SE (formerly known as Airbus Group N.V.) from October 1, 2007 to April 12, 2017. He served as a Director of Arcelor Mittal since May 1997. He served as a Non-Executive Director of ArcelorMittal South Africa Limited from January 2002 to November 29, 2006. He served as Director of ICICI Ltd. since April 1, 1999. He served as Director of EADS CASA S.A. He is a member of the Indian Prime Minister's Global Advisory Council, the Foreign Investment Council in Kazakhstan, the International Investment Council in South Africa, the Investors' Council to the Cabinet of Ministers of Ukraine, the World Economic Forum's International Business Council, the World Steel Association's Executive Committee and the Presidential International Advisory Board of Mozambique. In 1996, Mr. Mittal was awarded 'Steelmaker of the Year' by New Steel in the United States and the 'Willy Korf Steel Vision Award' by World Steel Dynamics in 1998 for outstanding vision, entrepreneurship, leadership and success in global steel development. He was named Fortune magazine's 'European Businessman of the Year 2004'. He was awarded 'Business Person of 2006' by the Sunday Times, 'International Newsmaker of the Year 2006' by Time Magazine and 'Person of the Year 2006' by the Financial Times for his outstanding business achievements. In January 2007, he was presented with a Fellowship from King's College London, the college's highest

CEO Compensation
  • Lakshmi's compensation has been consistent with company performance over the past year.
  • Lakshmi's remuneration is about average for companies of similar size in Netherlands.
Management Team Tenure

Average tenure and age of the ArcelorMittal management team in years:

2.8
Average Tenure
56
Average Age
  • The tenure for the ArcelorMittal management team is about average.
Management Team

Lakshmi Mittal

TITLE
Chairman & CEO
COMPENSATION
$4M
AGE
68
TENURE
43.2 yrs

Aditya Mittal

TITLE
President & Group CFO
AGE
41
TENURE
1 yrs

Daniel Fairclough

TITLE
Head of Investor Relations & VP of Corporate Finance

David Clarke

TITLE
CTO, Head of Corporate Strategy & VP
AGE
53
TENURE
3.2 yrs

Nicola Davidson

TITLE
Vice President of Corporate Communications and Corporate Responsibility

Bart Wille

TITLE
Executive VP & Head of Human Resources
AGE
56
TENURE
1.2 yrs

Augustine Kochuparampil

TITLE
VP & CEO of Long Products Europe
AGE
66
TENURE
5.7 yrs

Greg Ludkovsky

TITLE
Head of Global Research & Development and VP
AGE
68

Vijaj Goyal

TITLE
VP & CEO of Arcelormittal Downstream Solutions
TENURE
2.4 yrs

Ondra Otradovec

TITLE
Head of Mergers & Acquisition
AGE
49
Board of Directors Tenure

Average tenure and age of the ArcelorMittal board of directors in years:

6.8
Average Tenure
62
Average Age
  • The tenure for the ArcelorMittal board of directors is about average.
Board of Directors

Bruno Lafont

TITLE
Lead Independent Director
COMPENSATION
$272K
AGE
62
TENURE
1.8 yrs

Lakshmi Mittal

TITLE
Chairman & CEO
COMPENSATION
$4M
AGE
68
TENURE
10.8 yrs

Karyn Ovelmen

TITLE
Independent Director
COMPENSATION
$198K
AGE
55
TENURE
3.8 yrs

Vanisha Mittal Bhatia

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
$166K
AGE
37
TENURE
14.3 yrs

Michel Alphonse Wurth

TITLE
Director
COMPENSATION
$166K
AGE
64
TENURE
4.8 yrs

Jeannot Krecké

TITLE
Non-Executive Director
COMPENSATION
$166K
AGE
68
TENURE
9.2 yrs

Suzanne Nimocks

TITLE
Non-Executive & Independent Director
COMPENSATION
$178K
AGE
59
TENURE
8.2 yrs

Tye Burt

TITLE
Non-Executive & Independent Director
COMPENSATION
$178K
AGE
60
TENURE
6.8 yrs

Karel de Gucht

TITLE
Director
COMPENSATION
$185K
AGE
64
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess ArcelorMittal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ArcelorMittal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Evaluating ArcelorMittal’s (AMS:MT) Investments In Its Business

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is ArcelorMittal (AMS:MT) Overpaying Its CEO?

In 1976 Lakshmi Mittal was appointed CEO of ArcelorMittal (AMS:MT). … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Lakshmi Mittal's Compensation Compare With Similar Sized Companies?

Simply Wall St -

ArcelorMittal (AMS:MT): Earnings Growth Remains Elusive

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … In September 2018, ArcelorMittal (AMS:MT) released its earnings update.

Simply Wall St -

Do You Know What ArcelorMittal's (AMS:MT) P/E Ratio Means?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 4.63 = $22.73 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $4.91

Simply Wall St -

Is ArcelorMittal's (AMS:MT) Liquidity Good Enough?

ArcelorMittal (AMS:MT), a large-cap worth €20b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … Using the most recent data for MT, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.

Simply Wall St -

What Kind Of Shareholder Owns Most ArcelorMittal (AMS:MT) Stock?

If you want to know who really controls ArcelorMittal (AMS:MT), then you'll have to look at the makeup of its share registry. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership.

Simply Wall St -

Is ArcelorMittal's (AMS:MT) CEO Overpaid Relative To Its Peers?

How Does Lakshmi Mittal's Compensation Compare With Similar Sized Companies. … According to our data, ArcelorMittal has a market capitalization of €21.8b, and pays its CEO total annual compensation worth US$4m. … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$4m.

Simply Wall St -

A Look At The Intrinsic Value Of ArcelorMittal (AMS:MT)

In this article I am going to calculate the intrinsic value of ArcelorMittal (AMS:MT). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Looking At ArcelorMittal (AMS:MT) From All Angles

Looking at the company as a whole, as a potential stock investment, I believe MT has a lot to offer. … is a company with great financial health as well as a. … For those interested in understanding where the figures come from and want to see the analysis,

Simply Wall St -

Should You Be Concerned About ArcelorMittal's (AMS:MT) Investors?

In this article, I'm going to take a look at ArcelorMittal’s (AMS:MT) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Company Info

Description

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.

Details
Name: ArcelorMittal
MT
Exchange: ENXTAM
Founded: 1976
€19,309,002,502
1,009,568,258
Website: http://www.arcelormittal.com
Address: ArcelorMittal
24-26, Boulevard d’Avranches,
Luxembourg City,
1160,
Luxembourg
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTAM MT Common Stock Euronext Amsterdam NL EUR 11. Aug 1997
OTCPK AMSY.F Common Stock Pink Sheets LLC US USD 11. Aug 1997
DB ARRD Common Stock Deutsche Boerse AG DE EUR 11. Aug 1997
XTRA ARRD Common Stock XETRA Trading Platform DE EUR 11. Aug 1997
LSE 0RP9 Common Stock London Stock Exchange GB EUR 11. Aug 1997
SWX MT Common Stock SIX Swiss Exchange CH CHF 11. Aug 1997
WBAG MT Common Stock Wiener Boerse AG AT EUR 11. Aug 1997
BDL MTL Common Stock Bourse de Luxembourg LU EUR 11. Aug 1997
BME MTS Common Stock Bolsas y Mercados Espanoles ES EUR 11. Aug 1997
BATS-CHIXE ARRDD Common Stock BATS 'Chi-X Europe' GB EUR 11. Aug 1997
BATS-CHIXE MTSE Common Stock BATS 'Chi-X Europe' GB EUR 11. Aug 1997
BATS-CHIXE MTA Common Stock BATS 'Chi-X Europe' GB EUR 11. Aug 1997
NYSE MT NY REGISTRY SHS NEW(POST REV SPLT) New York Stock Exchange US USD 07. Aug 1997
BDL 032313400 NPV (POST STOCK SPLIT) Bourse de Luxembourg LU EUR 17. Feb 2017
DB ARRJ NY REGISTRY SHS NEW(POST REV SPLT) Deutsche Boerse AG DE EUR 07. Aug 1997
XTRA ARRJ NY REGISTRY SHS NEW(POST REV SPLT) XETRA Trading Platform DE EUR 07. Aug 1997
BMV MT N NY REGISTRY SHS NEW(POST REV SPLT) Bolsa Mexicana de Valores MX MXN 07. Aug 1997
Number of employees
Current staff
Staff numbers
208,583
ArcelorMittal employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/17 20:34
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.