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ArcelorMittal (MT)

NYSE - NYSE Delayed Price. Currency in USD
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18.38+0.20 (+1.10%)
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  • R
    The train is leaving the station. It’s not too late to jump on.
  • Y
    Yahoo Finance Insights
    MTCN is up 5.86% to 44.46
  • t
  • H
    Hong Lai
    KeyBanc Maintains Overweight on MT, Raises Prices Target to $17
  • s
    Upgraded by Kepler Capital Markets Hold » Buy
  • L
    ArcelorMittal plans to use $500 million of the cash proceeds to repurchase shares, starting immediately, the company said in a separate statement. 
  • Y
    Yahoo Finance Insights
    MTCN reached an all time high at 45.07
  • Y
    Yahoo Finance Insights
    MT is up 6.21% to 18.14
  • Y
    Yahoo Finance Insights
    MTCN reached an all time high at 42.04
  • L
    Peter Dorrance, has increased his position in CLF.
    CLF ready for a run-up.
  • Y
    Yahoo Finance Insights
    MT is up 9.19% to 16.27
  • Y
    Yahoo Finance Insights
    MT is down 6.10% to 13.01
  • Y
    Yahoo Finance Insights
    MTCN reached an all time high at 39.97
  • f
    Why ArcelorMittal's Stock Could Rise Another 50%?
    3:12 AM ET 5/29/20 | TREFIS

    ArcelorMittal's stock (NYSE: MT) We believe that the market is still undervaluing the company, and we estimate ArcelorMittal's valuation to be $15 per share - roughly 50% ahead of the current market price. Our price estimate takes into account the latest earnings as well as the company's guidance.

    Company Overview and General Reference

    ArcelorMittal is one of the largest global steel companies, with its customers spread across the Construction, Transport (including automotive), and Oil & Gas industries. The company operates in various geographies and faces competition from US Steel, Nucor, Nippon Steel, etc.
    Though ArcelorMittal reported a 23% y-o-y reduction in revenue in Q1 2021 with net loss of $1.1 billion as against a profit of $0.4 billion a year ago, the company remains well on course to meet its near-term net debt target of $7 billion. Management has also announced steps to cut down on fixed costs in order to support margins and new liquidity enhancing measures in 2020, which together has placed ArcelorMittal in a better position to deal with the current crisis, compared to its rivals like US Steel.

    Company Revenues

    ArcelorMittal reported $70.6 billion in total revenues for full-year 2019. This includes 5 operating segments-

    NAFTA: $18.6 billion in 2019 (26% of total revenues). Flat, Long, and Tubular operations of the USA, Canada, and Mexico
    Brazil: $8.1 billion in 2019 (11% of total revenues). Flat operations of Brazil, and the Long and Tubular operations of Brazil and its neighboring countries including Argentina, Costa Rica, Trinidad and Tobago, and Venezuela
    Europe: $37.8 billion in 2019 (53% of total revenues). Flat, Long, and Tubular operations of the European business, as well as ArcelorMittal Distribution Solution (AMDS)
    ACIS (Africa & Commonwealth of Independent States): $6.8 billion in 2019 (10% of total revenues). Steel sheets and plates as well as tubular items like pipes, that are made by rolling processes in ACIS region
    Mining: $4.8 billion in 2019 (7% of total revenues). Iron ore and coal operations

    Corporate and Eliminations of $5.4 billion constitute -7% of revenue

    For 2020, we expect the company's revenues to decline significantly to $60 billion on the back of a drop in global steel prices and lower demand due to the pandemic. We discuss ArcelorMittal's revenues by operating segments over the years along with forecast in detail in a separate dashboard along with comparison with peer US Steel.

    Net Income and EPS

    Net income margin increased from 3.1% in 2016 to 6.8% in 2018, before turning negative at -3.5% in 2019. The company reported a loss in 2019 due to a drop in revenue on account of lower steel prices due to US-China trade war, while cost of sales remained high as the price of primary input - iron ore - did not see a corresponding drop.
    Thus, after increasing from $1.86/share in 2016 to $5.04/share in 2018, EPS dropped to -$2.42/share in 2019.
    The company is expected to report losses in 2020 as well, however, the margins are still expected to be much better than its competitors.
    The management has been proactive and is focused in reducing its fixed cost in order to support margins, for which some important steps announced are - a) temporary labor cost savings; salary cuts; reduction/elimination of contractors, overtime reduction etc. b) reduction in repairs and maintenance (R&M) expenses: spend expected to be lower due to lower operating rates; and c) reduced SG&A expenses: Fixed cost savings achieved from countries in which the company operates where the currency has depreciated, as well as reduced SG&A expenses such as IT, travel, sales and marketing expenses, consultancy fees etc.
    We expect ArcelorMittal to report net income margin of -5% in 2020, which is likely to be much better than -8% in the case of US Steel.

    Share Count and Revenue Per Share

    As the company is likely to report losses, we use the P/S multiple for valuation.
    Share repurchases over the years have decreased share count from 1,024 million in 2017 to 1,013 million in 2019. This figure is expected to drop to 1,010 million in 2020, giving a revenue per share of $59.41 in 2020, much lower than the $69.71 in 2019 due to lower revenues.
    As per ArcelorMittal valuation by Trefis, we have a fair price estimate of $15 per share for the company's stock, which values each share at a P/S multiple of 0.25x. This is higher than the current
  • B
    I started following "awesomestokcalerts" (Gooogle it - off course without any space or dash in between the words) and their notifications are better than anyone else.
  • Y
    Yahoo Finance Insights
    MTCN reached an all time high at 41.15
  • S
    well I sold today...sometimes these overshoot and can be rebought lower.
  • c
    Fair value for ArcelorMittal ranges from $13 (DCF) to $16.50 (ROE/EBITDA)

  • I
    ArcelorMittal reports fourth quarter 2019 and full year 2019 results $MT https://seekingalpha.com/pr/17770821
  • K
    17bil market cap is insane. When Arcelor and Mittal joined, Mittal paid $33bil for Arcelor. P/E ratio under 4. Revenue of 77 bil. But nothing in this world makes logical sense. I would expect them to purchase more shares back.