ArcelorMittal Stock Buy Hold or Sell Recommendation

MT Stock  USD 30.43  0.66  2.12%   
Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding ArcelorMittal SA ADR is 'Strong Buy'. Macroaxis provides ArcelorMittal buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MT positions. The advice algorithm takes into account all of ArcelorMittal's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from ArcelorMittal's buy-and-hold perspective. Additionally, see ArcelorMittal Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as ArcelorMittal and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards ArcelorMittal SA ADR.

Execute ArcelorMittal Buy or Sell Advice

The ArcelorMittal recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on ArcelorMittal SA ADR. Macroaxis does not own or have any residual interests in ArcelorMittal SA ADR or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute ArcelorMittal's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell ArcelorMittalBuy ArcelorMittal
Strong Buy

Volatility

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Hype Condition

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Current Valuation

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Odds of Distress

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Economic Sensitivity

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Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon ArcelorMittal SA ADR has a Risk Adjusted Performance of 0.2259, Jensen Alpha of 0.2971, Total Risk Alpha of 0.2147, Sortino Ratio of 0.1953 and Treynor Ratio of 0.3126
Our advice module can be used to complement ArcelorMittal investment recommendation provided by average analyst sentiment. It analyzes the company's potential to grow using fundamental, technical, data market data available at the time. To make sure ArcelorMittal is not overpriced, please confirm all ArcelorMittal SA ADR fundamentals, including its book value per share, current asset, and the relationship between the net income and number of employees . Given that ArcelorMittal SA ADR has a price to book of 0.42 X, we suggest you to validate ArcelorMittal SA ADR market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

ArcelorMittal thematic classifications

ESG Investing
Companies that promote environmental, social, and governance factors during their day-to-day operations
Power Stocks
High potential, large capitalization stocks theme
Manufacturing
Manufacturing of goods across different domains

ArcelorMittal Returns Distribution Density

The distribution of ArcelorMittal's historical returns is an attempt to chart the uncertainty of ArcelorMittal's future price movements. The chart of the probability distribution of ArcelorMittal stock daily returns describes the distribution of returns around its average expected value. We use ArcelorMittal SA ADR price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of ArcelorMittal returns is essential to provide solid investment advice for ArcelorMittal.
Mean Return0.49Value At Risk-2.59
Potential Upside3.57Standard Deviation2.47
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of ArcelorMittal historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

ArcelorMittal Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as ArcelorMittal is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading ArcelorMittal SA ADR backward and forwards among themselves. ArcelorMittal's institutional investor refers to the entity that pools money to purchase ArcelorMittal's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zweigdimenna Associates LlcCommon Shares757.6 K6.3 M
Zurcher Kantonalbank Zurich CantonalbankDebt986 K999 K
Zions Bancorporation NaCommon Shares49110 K
Zions Bancorporation NaCommon Shares42610 K
Zions Bancorporation NaCommon Shares41613 K
Zions Bancorporation NaCommon Shares35711 K
Zions Bancorporation NaCommon Shares36511 K
Zions Bancorporation NaCommon Shares36511 K
Note, although ArcelorMittal's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

ArcelorMittal Cash Flow Accounts

201820192020202120222023 (projected)
Capital Expenditure(3.31 B)(3.77 B)(2.58 B)(3.02 B)(3.48 B)(3.75 B)
Depreciation Amortization and Accretion2.8 B3.07 B2.96 B2.52 B2.27 B2.65 B
Net Cash Flow or Change in Cash and Cash Equivalents(252 M)2.71 B573 M(1.33 B)(1.53 B)(1.57 B)
Net Cash Flow Business Acquisitions and Disposals(755 M)(370 M)237 M2.91 B3.35 B3.61 B
Issuance Repayment of Debt Securities(290 M)936 M(1.42 B)(5.16 B)(4.64 B)(4.76 B)
Payment of Dividends and Other Cash Distributions(220 M)(332 M)(181 M)(572 M)(657.8 M)(709.73 M)
Net Cash Flow from Financing(689 M)514 M(1.5 B)(10.9 B)(9.81 B)(10.07 B)
Net Cash Flow from Investing(3.76 B)(3.82 B)(2.01 B)(340 M)(391 M)(421.87 M)
Net Cash Flow from Operations4.2 B6.02 B4.08 B9.9 B11.39 B12.29 B
Effect of Exchange Rate Changes on Cash(140 M)(22 M)163 M(55 M)(63.25 M)(68.24 M)

ArcelorMittal Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to ArcelorMittal or Metals & Mining sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ArcelorMittal's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ArcelorMittal stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.30
β
Beta against NYSE Composite1.54
σ
Overall volatility
2.15
Ir
Information ratio 0.15

ArcelorMittal Volatility Alert

ArcelorMittal SA ADR has relatively low volatility with skewness of 1.28 and kurtosis of 3.49. However, we advise all investors to independently investigate ArcelorMittal SA ADR to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ArcelorMittal's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ArcelorMittal's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

ArcelorMittal Implied Volatility

ArcelorMittal's implied volatility exposes the market's sentiment of ArcelorMittal SA ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if ArcelorMittal's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that ArcelorMittal stock will not fluctuate a lot when ArcelorMittal's options are near their expiration.

ArcelorMittal Fundamentals Vs Peers

Comparing ArcelorMittal's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze ArcelorMittal's direct or indirect competition across all of the common fundamentals between ArcelorMittal and the related equities. This way, we can detect undervalued stocks with similar characteristics as ArcelorMittal or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of ArcelorMittal's fundamental indicators could also be used in its relative valuation, which is a method of valuing ArcelorMittal by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare ArcelorMittal to competition
FundamentalsArcelorMittalPeer Average
Return On Equity0.26 %(0.31) %
Return On Asset0.10 %(0.14) %
Profit Margin0.16 %(1.27) %
Operating Margin0.18 %(5.51) %
Current Valuation25.46 B16.62 B
Shares Outstanding816 M571.82 M
Shares Owned by Institutions6.45 %39.21 %
Number of Shares Shorted3.6 M4.71 M
Price to Earning1.87 X28.72 X
Price to Book0.42 X9.51 X
Price to Sales0.25 X11.42 X
Revenue76.57 B9.43 B
Gross Profit19.14 B27.38 B
EBITDA20.46 B3.9 B
Net Income15.56 B570.98 M
Cash and Equivalents1.54 B2.7 B
Cash per Share6.21 X5.01 X
Total Debt6.49 B5.32 B
Debt to Equity0.17 %48.70 %
Current Ratio1.62 X2.16 X
Book Value Per Share63.19 X1.93 K
Cash Flow from Operations9.9 B971.22 M
Short Ratio1.62 X4.00 X
Earnings Per Share13.96 X3.12 X
Price to Earnings To Growth0.65 X4.89 X
Target Price35.01
Number of Employees158 K18.84 K
Beta1.98-0.15
Market Capitalization25.04 B19.03 B
Total Asset90.51 B29.47 B
Retained Earnings22.13 B9.33 B
Working Capital4.29 B1.48 B
Current Asset22.33 B9.34 B

About ArcelorMittal Buy or Sell Advice

When is the right time to buy or sell ArcelorMittal SA ADR? Buying financial instruments such as ArcelorMittal Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2020 2021 2022 2023 (projected)
Current Assets27.97 B34.94 B31.45 B28.98 B
Total Assets82.05 B90.51 B81.46 B82.54 B

Use Investing Ideas to Build Portfolios

In addition to having ArcelorMittal in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Recycling Thematic Idea Now

Recycling
Recycling Theme
West management companies as well as entities specializing in pollution control and recycling. The Recycling theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Recycling Theme or any other thematic opportunities.
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Additionally, see ArcelorMittal Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is ArcelorMittal's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ArcelorMittal. If investors know ArcelorMittal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ArcelorMittal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.73) 
Market Capitalization
25 B
Quarterly Revenue Growth
(0.06) 
Return On Assets
0.1037
Return On Equity
0.2608
The market value of ArcelorMittal SA ADR is measured differently than its book value, which is the value of ArcelorMittal that is recorded on the company's balance sheet. Investors also form their own opinion of ArcelorMittal's value that differs from its market value or its book value, called intrinsic value, which is ArcelorMittal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ArcelorMittal's market value can be influenced by many factors that don't directly affect ArcelorMittal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ArcelorMittal's value and its price as these two are different measures arrived at by different means. Investors typically determine ArcelorMittal value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ArcelorMittal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.