One-glance verdict
Within fair range
$22.48 our estimate vs market $71.30
Wall Street consensus: $77.89 (246.4% higher than our fair-value estimate)
217% above our estimate
Fundamentals snapshot
ArcelorMittal S.A.
MT · NYQ · Basic Materials · Steel
Current price
$71.30
52-week range
$35.71 - $79.68
Market cap
$53.65B
Balance sheet
Stretched
2.53x Stretched
Net debt $9.57B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 3.3% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 241.2% over 3 years.
- Risk Stock trades 126.3% above its 5-year average P/E.
What this company does
ArcelorMittal S.A.
ArcelorMittal is one of the world's largest steel companies, producing the essential metal used to build cars, skyscrapers, and household appliances. The company makes money by mining its own key ingredient, iron ore, and then selling the finished steel to major industries around the globe. Because steel is a fundamental building block for economic activity, the company's performance is often closely tied to trends in global construction and manufacturing.
How the company got here
ArcelorMittal was formed in 2006 through the massive merger of two large steel companies, Arcelor and Mittal Steel. This combination created what was at the time the world's largest steel producer. The story of its creation is really one of consolidation, where many smaller steel companies were bought up over time by these two giants before they eventually joined forces. The merger brought together Mittal Steel's strength in operating efficiently and Arcelor's advanced technology and research. Since then, the company has focused on managing its many global operations and is now concentrating on producing higher-value steels and reducing its carbon footprint.
What it actually does
ArcelorMittal is a major global company that makes steel and mines for the raw materials needed to produce it, like iron ore. Think of the steel used in cars, skyscrapers, bridges, and even household appliances like refrigerators and washing machines; there's a good chance some of it came from ArcelorMittal. They create a wide variety of steel products, from basic slabs and coils to specialized, high-strength steel for the automotive industry. The company is 'vertically integrated,' which is a business term meaning it controls multiple stages of its production process, from digging iron ore out of the ground to shipping finished steel products to customers.
Europe
This is ArcelorMittal's largest segment, making up the biggest piece of its sales. It produces a wide range of steel products, including flat steel for cars and appliances, and long products like beams and rods for the construction industry. Customers are typically large industrial buyers in sectors like automotive manufacturing and construction. The company has a significant number of its production facilities located across the European continent.
North America
This division operates steel manufacturing facilities in the United States, Canada, and Mexico. It serves the large automotive and construction markets in the region, providing various types of flat, long, and tubular steel. This segment represents a significant portion of the company's overall business.
Brazil
In Brazil and neighboring South American countries, ArcelorMittal has a strong presence. This segment produces flat steel for the domestic market as well as long and tubular products for the wider region. It's a key part of the company's operations in the Americas, contributing a substantial share of revenue.
India
Considered a major growth opportunity, this segment operates through a joint venture (a partnership with another company). It produces steel sheets, plates, and pipes for India's fast-growing economy. While currently a smaller part of the company's total revenue, ArcelorMittal is investing to expand its capacity here.
Mining
This part of the business focuses on mining iron ore and coal, the key ingredients for making steel. ArcelorMittal operates mines in several countries, including Brazil, Canada, Liberia, and Ukraine. A large portion of what is mined is used by its own steel mills, giving the company better control over its raw material supply and costs. It also sells some of these materials to other companies.
What management is betting on now
The company's main focus is on becoming more resilient and sustainable. A huge priority is decarbonization, which means finding ways to make steel with much lower carbon emissions, a significant challenge for the industry. They are investing in new technologies like electric arc furnaces and exploring the use of green hydrogen to achieve their goal of being carbon neutral by 2050. Another key strategy is to grow in markets with strong demand, like India, and to focus on producing more advanced, high-value steels that are more profitable than basic commodity (standard, interchangeable) steel.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $22.48 vs current price $71.30
Wall Street consensus is the average analyst price target: $77.89 (246.4% higher than our fair-value estimate).
Our most-likely fair value is $22.48 a share — about 68.5% away from today's price of $71.30, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $9.6B. Interest coverage 2.5x.
Net debt
$9.57B
Interest coverage
2.53x
ArcelorMittal S.A.'s profit covers its interest bill about 2.5 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
MT
BASELINE
ArcelorMittal S.A.
Total debt $14.42B Interest coverage 2.53x This is the baseline the peer rows are being compared against.
Total debt $7.10B Interest coverage 15.64x +518% vs MT Carries about 6.2x more debt cushion than MT.
Total debt $4.39B Interest coverage 22.83x +802% vs MT Carries about 9.0x more debt cushion than MT.
Total debt $7.72B Interest coverage -2.45x -100% vs MT This peer has almost no interest-payment cushion compared with MT.
Total debt $23.48B Interest coverage 1.71x -32% vs MT Carries about 1.5x less debt cushion than MT.
What you should know
The case for and against MT
3 Rewards
3 Risks
Rewards
-
Returns 3.3% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 0.8% with 29-year payout history.
Risks
-
Net debt grew 241.2% over 3 years.
-
Stock trades 126.3% above its 5-year average P/E.
-
Operating margin compressed from 12.8% to 6.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.21x
Forward P/E
9.63x
P/B
1.96x
P/S
0.85x
EV/EBITDA
21.85x
PEG ratio
0.42x
Profitability
How much profit each dollar creates
Gross margin
9.0%
Operating margin
6.3%
Net margin
2.9%
ROE
3.3%
ROA
1.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.25x
Current ratio
1.43x
Quick ratio
0.42x
Total debt
$14.42B
Total cash
$4.85B
Growth
How the business has been compounding
Revenue TTM
$62.85B
Revenue 5Y CAGR
-8.4%
EPS TTM
2.36
EPS 5Y CAGR
-26.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.81B
Free CF TTM
$471.00M
FCF margin
0.7%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
24.2%
Last ex-div date
2026-11-13