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

Fundamentals

Flawless balance sheet and undervalued.


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


Market Performance


7 Day Return

9.4%

MT

1.2%

NL Metals and Mining

2.0%

NL Market


1 Year Return

-47.3%

MT

-9.1%

NL Metals and Mining

5.7%

NL Market

Return vs Industry: MT underperformed the Dutch Metals and Mining industry which returned -9.1% over the past year.

Return vs Market: MT underperformed the Dutch Market which returned 5.7% over the past year.


Shareholder returns

MTIndustryMarket
7 Day9.4%1.2%2.0%
30 Day-14.1%-6.6%-0.5%
90 Day-11.0%-9.3%-0.9%
1 Year-46.7%-47.3%-2.8%-9.1%10.4%5.7%
3 Year-25.0%-25.9%29.0%11.7%40.9%25.2%
5 Year-42.4%-56.6%33.8%10.2%66.5%33.0%

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?

35.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MT (€13.08) is trading below our estimate of fair value (€20.23)

Significantly Undervalued: MT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MT is good value based on its PE Ratio (7.1x) compared to the Metals and Mining industry average (9x).

PE vs Market: MT is good value based on its PE Ratio (7.1x) compared to the Dutch market (19.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MT is good value based on its PEG Ratio (0.1x)


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 (0.9x).


Next Steps

Future Growth

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

61.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MT's forecast earnings growth (61.7% per year) is above the savings rate (0.4%).

Earnings vs Market: MT's earnings (61.7% per year) are forecast to grow faster than the Dutch market (11.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MT's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: MT's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MT's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has ArcelorMittal performed over the past 5 years?

50.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MT has become profitable over the past 5 years, growing earnings by 50.7% per year.

Accelerating Growth: MT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MT had negative earnings growth (-61.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-5.2%).


Return on Equity

High ROE: MT's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: MT's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: MT has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is ArcelorMittal's financial position?


Financial Position Analysis

Short Term Liabilities: MT's short term assets ($32.5B) exceeds its short term liabilities ($23.1B)

Long Term Liabilities: MT's short term assets (32.5B) exceeds its long term liabilities (25.1B)


Debt to Equity History and Analysis

Debt Level: MT's debt to equity ratio (28%) is considered satisfactory

Reducing Debt: MT's debt to equity ratio has reduced from 40.4% to 28% over the past 5 years.

Debt Coverage: MT's debt is well covered by operating cash flow (45.1%).

Interest Coverage: MT's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet

Inventory Level: MT has a high level of physical assets or inventory.

Debt Coverage by Assets: MT's debt is covered by short term assets (assets are 2.634480x debt).


Next Steps

Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.2%markettop25%6.0%industryaverage7.0%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MT's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.24%).

High Dividend: MT's dividend (1.38%) is low compared to the top 25% of dividend payers in the Dutch market (5.96%).

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: With its low payout ratio (9.8%), MT's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MT's dividends in 3 years are forecast to be well covered by earnings (21.6% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Lakshmi Mittal (69yo)

43.8yrs

Tenure

US$4,379,000

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 ($USD4.38M) is about average for companies of similar size in the Dutch market ($USD3.92M).

Compensation vs Earnings: Lakshmi's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.4yrs

Average Tenure

57yo

Average Age

Experienced Management: MT's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

63yo

Average Age

Experienced Board: MT's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Lakshmi Mittal (69yo)

    Chairman & CEO

    • Tenure: 43.8yrs
    • Compensation: US$4.38m
  • Aditya Mittal (42yo)

    President & Group CFO

    • Tenure: 1.6yrs
    • Compensation: US$237.00k
  • Augustine Kochuparampil (67yo)

    VP & CEO of Long Products Europe

    • Tenure: 6.3yrs
  • Greg Ludkovsky (69yo)

    Head of Global Research & Development and VP

    • Tenure: 0yrs
  • Vijaj Goyal

    VP & CEO of Arcelormittal Downstream Solutions

    • Tenure: 3yrs
  • Ondra Otradovec (50yo)

    Head of Mergers & Acquisition

    • Tenure: 0yrs
  • David Clarke (54yo)

    CTO, Head of Corporate Strategy & VP

    • Tenure: 3.8yrs
  • Daniel Fairclough

    Head of Investor Relations & VP of Corporate Finance

    • Tenure: 0yrs
  • Paul Weigh

    Head of Media Relations

    • Tenure: 0yrs
  • Bart Wille (57yo)

    Executive VP & Head of Human Resources

    • Tenure: 1.8yrs

Board Members

  • Lakshmi Mittal (69yo)

    Chairman & CEO

    • Tenure: 43.8yrs
    • Compensation: US$4.38m
  • Michel Alphonse Léon Wurth (65yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$166.00k
  • Bruno Lafont (63yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$272.00k
  • Tye Burt (61yo)

    Non-Executive & Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$178.00k
  • Karel de Gucht (65yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$185.00k
  • Vanisha Mittal Bhatia (38yo)

    Non-Executive & Non-Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$166.00k
  • Suzanne Nimocks (60yo)

    Non-Executive & Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$178.00k
  • Karyn Ovelmen (56yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$198.00k
  • Jeannot Krecké (69yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: US$166.00k

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: €13.241b
  • 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
ARRJDB (Deutsche Boerse AG)NY REGISTRY SHS NEW(POST REV SPLT)DEEURAug 1997
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
MT NBMV (Bolsa Mexicana de Valores)NY REGISTRY SHS NEW(POST REV SPLT)MXMXNAug 1997
ARRDXTRA (XETRA Trading Platform)YesCommon StockDEEURAug 1997
MTENXTAM (Euronext Amsterdam)YesCommon StockNLEURAug 1997
0RP9LSE (London Stock Exchange)YesCommon StockGBEURAug 1997
MTSBME (Bolsas y Mercados Espanoles)YesCommon StockESEURAug 1997
MTLBDL (Bourse de Luxembourg)YesCommon StockLUEURAug 1997
AMSY.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 1997
ARRDDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1997
MTSWX (SIX Swiss Exchange)YesCommon StockCHCHFAug 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, Br ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:33
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.