Arcelor Mittal logged a -1.5% change during today's afternoon session, and is now trading at a price of $31.16 per share.
Arcelor Mittal returned gains of 38.0% last year, with its stock price reaching a high of $34.9 and a low of $20.52. Over the same period, the stock outperformed the S&P 500 index by 25.6%. More recently, the company's 50-day average price was $30.13. ArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in the Americas, Europe, Asia, and Africa. Based in Luxembourg City, Luxembourg, the Large-Cap Industrials company has 125,416 full time employees. Arcelor Mittal has offered a 1.7% dividend yield over the last 12 months.
A Positive EPS Growth Rate but Slimmer Gross Margins than the Industry Average of 16.75%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $70,615 | $53,270 | $76,571 | $79,844 | $68,275 | $62,441 |
| Gross Margins | 2% | 8% | 25% | 16% | 7% | 9% |
| Net Margins | -3% | -1% | 20% | 12% | 1% | 2% |
| Net Income (M) | -$2,391 | -$578 | $15,565 | $9,538 | $1,022 | $1,380 |
| Net Interest Expense (M) | $695 | $477 | $357 | $401 | $715 | $510 |
| Depreciation & Amort. (M) | $3,067 | $2,960 | $2,523 | $2,580 | $2,675 | $2,632 |
| Diluted Shares (M) | 1,013 | 1,140 | 1,108 | 914 | 845 | 791 |
| Earnings Per Share | -$2.42 | -$0.64 | $13.49 | $10.18 | $1.09 | $1.69 |
| EPS Growth | n/a | 73.55% | 2207.81% | -24.54% | -89.29% | 55.05% |
| Free Cash Flow (M) | $6,017 | $4,082 | $9,905 | $10,203 | $7,645 | $4,852 |
| Total Debt (M) | $22,942 | $19,630 | $12,976 | $18,134 | $16,738 | $17,630 |
| Net Debt / EBITDA | 7.41 | 2.77 | 0.45 | 0.69 | 1.8 | 1.89 |
| Current Ratio | 1.34 | 1.23 | 1.45 | 1.66 | 1.53 | 1.35 |
Arcelor Mittal Has Attractive Multiples and Trades Below Its Fair Value:
Arcelor Mittal has a trailing twelve month P/E ratio of 19.2, compared to an average of 24.03 for the Industrials sector. Based on its EPS guidance of $4.01, the company has a forward P/E ratio of 7.5. According to the 15.0% compound average growth rate of Arcelor Mittal's historical and projected earnings per share, the company's PEG ratio is 1.28. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 11.7%. On this basis, the company's PEG ratio is 1.64. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Arcelor Mittal in terms of its equity because its P/B ratio is 0.47 while the sector average is 2.89. The company's shares are currently trading -37.2% above their Graham number.
Arcelor Mittal Has an Average Rating of Buy:
The 5 analysts following Arcelor Mittal have set target prices ranging from $28.0 to $35.7 per share, for an average of $32.4 with a buy rating. The company is trading -3.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Arcelor Mittal has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 4.9% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Dimensional Fund Advisors LP, whose 0% stake in the company is worth $95,784,913.
