Today we're going to take a closer look at Large-Cap Industrials company Arcelor Mittal, whose shares are currently trading at $38.28. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Arcelor Mittal Has Attractive Multiples and Its Shares Are on Sale:
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 11.0 and a P/B ratio of 0.54.
Arcelor Mittal has moved 50.6% over the last year compared to 17.7% for the S&P 500 — a difference of 32.8%. Arcelor Mittal has a 52 week high of $38.59 and a 52 week low of $21.59.
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 |
