NYSE: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

Very undervalued with flawless balance sheet.


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

-12.0%

MT

-0.6%

US Metals and Mining

-0.6%

US Market


1 Year Return

-53.1%

MT

-11.2%

US Metals and Mining

0.7%

US Market

MT underperformed the Metals and Mining industry which returned -11.4% over the past year.

MT underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

MTIndustryMarket
7 Day-12.0%-0.6%-0.6%
30 Day12.4%8.1%4.9%
90 Day-11.0%-1.1%1.7%
1 Year-52.6%-53.1%-8.5%-11.2%3.0%0.7%
3 Year5.3%-17.3%10.5%4.8%44.8%35.4%
5 Year-53.6%-64.1%-3.8%-11.1%62.0%44.3%

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

1 year ago | Simply Wall St

Has ArcelorMittal (MT) Got Enough Cash To Cover Its Short-Term Obligations?

Valuation

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

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

ArcelorMittal is good value based on earnings compared to the US Metals and Mining industry average.

ArcelorMittal is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

ArcelorMittal is good value based on expected growth next year.


Price Based on Value of Assets

ArcelorMittal is good value based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

How is ArcelorMittal expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

47.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ArcelorMittal's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

ArcelorMittal's earnings are expected to grow significantly at over 20% yearly.

ArcelorMittal's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

ArcelorMittal's earnings growth is expected to exceed the United States of America market average.

ArcelorMittal's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

ArcelorMittal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

ArcelorMittal has delivered over 20% year on year earnings growth in the past 5 years.

ArcelorMittal's 1-year earnings growth is negative, it can't be compared to the 5-year average.

ArcelorMittal's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.


Return on Equity

ArcelorMittal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ArcelorMittal used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

ArcelorMittal has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ArcelorMittal's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

ArcelorMittal's level of debt (28%) 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 (40.4% vs 28% today).

Debt is well covered by operating cash flow (45.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.6x debt.


Next Steps

Dividend

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

2.82%

Expected Dividend Yield


Dividend Yield and Payments Analysis

ArcelorMittal's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

ArcelorMittal's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (10.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Lakshmi Mittal (69yo)

43.7yrs

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

Lakshmi's remuneration is lower than average for companies of similar size in United States of America.

Lakshmi's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

The tenure for the ArcelorMittal management team is about average.


Board Age and Tenure

7.3yrs

Average Tenure

63yo

Average Age

The tenure for the ArcelorMittal board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Lakshmi Mittal (69yo)

    Chairman & CEO

    • Tenure: 43.7yrs
    • Compensation: US$4.38m
  • Aditya Mittal (42yo)

    President & Group CFO

    • Tenure: 1.5yrs
    • Compensation: US$237.00k
  • Augustine Kochuparampil (67yo)

    VP & CEO of Long Products Europe

    • Tenure: 6.2yrs
  • Greg Ludkovsky (69yo)

    Head of Global Research & Development and VP

    • Tenure: 0yrs
  • Vijaj Goyal

    VP & CEO of Arcelormittal Downstream Solutions

    • Tenure: 2.9yrs
  • Ondra Otradovec (50yo)

    Head of Mergers & Acquisition

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

    CTO, Head of Corporate Strategy & VP

    • Tenure: 3.7yrs
  • 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: 1.7yrs

Board Members

  • Lakshmi Mittal (69yo)

    Chairman & CEO

    • Tenure: 43.7yrs
    • Compensation: US$4.38m
  • Michel Alphonse Léon Wurth (65yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$166.00k
  • Bruno Lafont (63yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$272.00k
  • Tye Burt (61yo)

    Non-Executive & Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$178.00k
  • Karel de Gucht (65yo)

    Director

    • Tenure: 3.3yrs
    • 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: 8.7yrs
    • Compensation: US$178.00k
  • Karyn Ovelmen (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$198.00k
  • Jeannot Krecké (69yo)

    Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: US$166.00k

Company Information

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


Key Information

  • Name: ArcelorMittal
  • Ticker: MT
  • Exchange: NYSE
  • Founded: 1976
  • Industry: Steel
  • Sector: Materials
  • Market Cap: €13.998b
  • Listing Market Cap: €15.401b
  • 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 Analysis2019/09/22 23:54
End of Day Share Price2019/09/20 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.