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ArcelorMittal (MT)
NYSE:MT
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ArcelorMittal
(NYSE:MT)73Outperform
ArcelorMittal (MT) vs. S&P 500 (SPY)
Market Cap
$26.74B
Dividend Yield1.25%
Average Volume (3M)2.87M
Price to Earnings (P/E)19.8
Beta (1Y)1.25
Revenue Growth-8.56%
EPS Growth71.92%
CountryUS
Employees126,756
SectorBasic Materials
Sector Strength56
IndustrySteel
Share Statistics
EPS (TTM)1.70
Shares Outstanding852,809,750
10 Day Avg. Volume3,844,635
30 Day Avg. Volume2,867,981
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)N/A
Price to Sales (P/S)1.91
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.34Price Target Upside-5.46% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
ArcelorMittal Business Overview & Revenue Model
Company DescriptionArcelorMittal (MT) is a leading global steel and mining company with a presence in over 60 countries. The company is known for producing a wide range of steel products, including flat and long steel, as well as specialty products for various industries such as automotive, construction, and energy. ArcelorMittal operates a vertically integrated business model, encompassing mining, steel production, and distribution, which allows it to manage the entire supply chain efficiently.
How the Company Makes MoneyArcelorMittal makes money through the production and sale of steel and mining products. Its primary revenue stream is the sale of steel products, which include flat products like slabs, hot- and cold-rolled coils, and coated steel, as well as long products such as wire rods, rebars, and sections. The company also generates revenue from its mining operations, which supply iron ore and coal to its steel production facilities and external customers. Additionally, ArcelorMittal engages in strategic partnerships and joint ventures to enhance its market presence and optimize its operations. Factors such as global steel demand, raw material prices, and production efficiency significantly influence its earnings.
ArcelorMittal Financial Statement Overview
Summary
ArcelorMittal shows a recovery in revenue and improved gross margins in 2024. The balance sheet is strong with a low debt-to-equity ratio and high equity ratio, but declining ROE and negative free cash flow growth are concerns.Income Statement
ArcelorMittal's income statement shows a mixed performance. The company has experienced fluctuations in revenue, with a decline from 2022 to 2023 but a recovery by 2024. Gross profit margin improved in 2024 (10.05%) compared to 2023 (6.94%), indicating better cost management. However, the net profit margin remains relatively low at 2.14% in 2024. The EBIT margin in 2024 is 5.30%, showing a moderate operational efficiency, while the EBITDA margin is stronger at 10.05%.72
Positive
Balance Sheet
The balance sheet of ArcelorMittal reflects a stable financial position with an equity ratio of 55.07% in 2024, which indicates a strong capital structure. The debt-to-equity ratio is manageable at 0.24, suggesting a moderate leverage level. However, the return on equity has declined to 2.72% in 2024, pointing to a reduction in profitability.68
Positive
Cash Flow
Cash flow analysis for ArcelorMittal indicates a significant drop in free cash flow from 2023 to 2024, leading to a negative free cash flow growth rate. The operating cash flow to net income ratio is 3.62 in 2024, indicating robust cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.33, highlighting challenges in converting net income into cash flow.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 62.44B | 68.28B | 79.84B | 76.57B | 53.27B | Gross Profit |
| 6.27B | 4.74B | 12.54B | 19.23B | 4.13B | EBIT |
| 3.31B | 2.34B | 10.27B | 16.98B | -1.32B | EBITDA |
| 6.27B | 4.65B | 12.92B | 19.15B | 5.26B | Net Income Common Stockholders |
| 1.34B | 919.00M | 9.30B | 20.48B | -578.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.48B | 7.69B | 9.41B | 4.37B | 5.96B | Total Assets |
| 89.39B | 93.92B | 94.55B | 90.51B | 82.05B | Total Debt |
| 11.56B | 10.68B | 11.65B | 8.40B | 12.32B | Net Debt |
| 5.08B | 3.00B | 2.24B | 4.03B | 6.36B | Total Liabilities |
| 38.10B | 37.85B | 38.96B | 39.17B | 41.81B | Stockholders Equity |
| 49.22B | 53.96B | 53.15B | 49.11B | 38.28B |
| Cash Flow | Free Cash Flow | |||
| 447.00M | 3.03B | 6.74B | 6.90B | 1.64B | Operating Cash Flow |
| 4.85B | 7.64B | 10.20B | 9.90B | 4.08B | Investing Cash Flow |
| -4.99B | -5.85B | -4.48B | -340.00M | -2.01B | Financing Cash Flow |
| -680.00M | -3.67B | -477.00M | -10.90B | -1.50B |
ArcelorMittal Technical Analysis
Positive
33.15
Price Trends
25.87
Positive
25.26
Positive
24.34
Positive
Market Momentum
1.80
Negative
72.58
Negative
87.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MT, the sentiment is Positive. The current price of 33.15 is above the 20-day moving average (MA) of 29.19, above the 50-day MA of 25.87, and above the 200-day MA of 24.34, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 72.58 is Negative, neither overbought nor oversold. The STOCH value of 87.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MT.
ArcelorMittal Risk Analysis
ArcelorMittal disclosed 37 risk factors in its most recent earnings report. ArcelorMittal reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ArcelorMittal Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.01B | 18.05 | 11.71% | 1.55% | -6.56% | -31.89% | |
73 Outperform | $26.74B | 19.83 | 2.60% | 1.25% | -8.56% | 71.92% | |
73 Outperform | $30.54B | 15.66 | 9.79% | 1.64% | -11.46% | -53.29% | |
72 Outperform | $19.18B | 12.97 | 17.27% | 1.44% | -6.68% | -32.96% | |
57 Neutral | $8.43B | 23.96 | 3.43% | 0.53% | -13.48% | -56.94% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% | |
44 Neutral | $4.96B | ― | -10.36% | ― | -12.78% | -301.57% |
* Basic Materials Sector Average
Performance Comparison
MT
ArcelorMittal
33.15
7.49
29.19%
CLF
Cleveland-Cliffs
9.81
-11.18
-53.26%
NUE
Nucor
133.72
-49.40
-26.98%
RS
Reliance Steel
288.93
-26.03
-8.26%
STLD
Steel Dynamics
125.03
-4.55
-3.51%
X
United States Steel
36.23
-10.97
-23.24%
ArcelorMittal Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 30.10% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
ArcelorMittal's performance in 2024 demonstrated resilience and strategic growth despite challenging market conditions and geopolitical issues. The company reported strong financial metrics, strategic project contributions, and significant shareholder returns. However, delays in project execution, challenges in Europe, and geopolitical and import pressures in key markets pose risks. Overall, the company shows a positive outlook with continued focus on strategic investments and decarbonization.Highlights
Resilient Financial Performance
ArcelorMittal delivered $7.1 billion EBITDA for 2024 despite challenging market conditions, translating to $130 EBITDA per ton shipped, nearly double the previous cycle lows.
Investable Cash Flow Generation
The company generated $2 billion of investable cash flow in 2024, with a total of $21 billion since 2021, enabling strategic investments and shareholder returns.
Strategic Project Contributions
High-return strategic projects are expected to contribute $1.9 billion to structural EBITDA, with $400 million in 2025 and $600 million in 2026.
Shareholder Returns
Dividend increased to $0.55 per share, a 10% increase over the previous year, and share buybacks reduced share count by 37% over four years.
Decarbonization Progress
ArcelorMittal's absolute carbon emissions are approximately half of 2018 levels, with significant investments in economic decarbonization and low-carbon solutions.
Robust Project Execution in Select Regions
Successful completion and rapid ramp-up of the Vega project in Brazil, demonstrating effective project execution in certain regions.
Lowlights
Challenges in Europe
High energy prices and increased imports have challenged the European operations, with trade actions and climate regulation needed to improve competitiveness.
Delays in Strategic Projects
Three strategic projects (Mardyck, Barra Mansa, Serra Azul) experienced delays due to equipment supply issues and lack of project experience, impacting expected EBITDA contributions.
Operational Losses in Ukraine
Ukraine operations are operating at 30% capacity, resulting in cash losses despite being EBITDA breakeven due to ongoing geopolitical challenges.
Import Challenges in India
The Indian market is facing challenges due to import pressures, with the government evaluating safeguard actions to support domestic growth.
Potential Impact of Trade Tariffs
Potential re-emergence of trade tariffs in NAFTA could impact operations, reminiscent of the $100 million quarterly cost impact from previous tariffs.
Company Guidance
During the call discussing ArcelorMittal's performance and progress in 2024, the company provided several key metrics and guidance for the future. They reported an EBITDA of $7.1 billion for the year, translating to $130 of EBITDA per ton shipped, almost double the previous cycle lows. The company generated $2 billion in investable cash flow and invested $1.3 billion in strategic growth projects. They announced a 10% increase in dividend to $0.55 per share, reflecting an 80% increase since 2020. ArcelorMittal is forecasting slightly positive demand growth in 2025 and expects to capture $400 million of incremental EBITDA in 2025 and an additional $600 million in 2026 from its strategic projects. They also highlighted a 50% reduction in carbon emissions compared to 2018 levels and maintained a focus on generating positive cash flow and returning capital to shareholders through dividends and buybacks, having reduced their share count by 37% over the last four years.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.