It's been a great afternoon session for Arcelor Mittal investors, who saw their shares rise 1.8% to a price of $32.23 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
The Market May Be Undervaluing Arcelor Mittal's Assets and Equity:
ArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in the Americas, Europe, Asia, and Africa. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 24.03 and an average price to book (P/B) ratio of 2.89. In contrast, Arcelor Mittal has a trailing 12 month P/E ratio of 9.8 and a P/B ratio of 0.45.
Arcelor Mittal has moved 45.1% over the last year compared to 19.3% for the S&P 500 — a difference of 25.9%. Arcelor Mittal has a 52 week high of $34.9 and a 52 week low of $21.46.
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 |
