ArcelorMittal Stock Analysis, Valuation (NYSE:MT)

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$29.1 $0.65 (2.28%) MT stock closing price Aug 17, 2018 (Closing)

Take a look at Amigobulls ArcelorMittal stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for MT stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

ArcelorMittal SA (ADR) Stock Rating 3.4/5

Amigobulls MT stock analysis takes into account various financial ratios like relative valuation, ArcelorMittal revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check ArcelorMittal dividend performance. We compare ArcelorMittal valuation with its sector peers to gauge relative attractiveness of MT stock. ArcelorMittal stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy MT stock?

  • ArcelorMittal sales grew by 19.3% year on year in 2018-03.
  • ArcelorMittal has a lower debt burden than its peers in the Basic Materials sector, with a debt/equity ratio of 0.31.
  • MT stock is trading at an earnings multiple of 5.6 which is better than the sector average of 17.4.
  • MT stock is trading at a favorable price to sales multiple of 0.4 as against the Basic Materials sector average multiple of 1.3.
  • ArcelorMittal has an attractive ROIC (Return on Invested Capital) of 8.8

Should you sell MT stock?

  • Sales declined by -2.5 annually over the last 5 years.
  • Cash flow from operations is low at 0.1342 times the net income.
  • ArcelorMittal has a negative FCF (Free Cash Flow) margin of -3.1.

Comments on this video and ArcelorMittal stock

Investors can use Amigobulls ArcelorMittal stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

ArcelorMittal revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of MT technical analysis to check whether the fundamental story is reflected in the market sentiment.