MT

ArcelorMittal - New York Shares - Level III

Industrial/Transportation


Presented:03/08/2024
Price:$26.09
Cap:$21.37B
Current Price:$23.78
Cap:$18.68B

Presented

Date03/08/2024
Price$26.09
Market Cap$21.37B
Ent Value$28.26B
P/E Ratio26.4x
Book Value$65.87
Div Yield1.69%
Shares O/S819.27M
Ave Daily Vol1,608,702
Short IntN/A

Current

Price$23.78
Market Cap$18.68B
ArcelorMittal SA is a holding company, which engages in steelmaking and mining activities. It operates through the following business segments: NAFTA; Brazil; Europe; Africa and Commonwealth of Independent States (ACIS), Mining, and Others. The NAFTA segment consists of flat products such as slabs, hot-rolled coil, cold-rolled coil, coated steel, and plate. The Brazil segment covers wire rod, bar and rebars, billets, blooms, and wire drawing. The Europe segment offers hot-rolled coil, cold-rolled coil, coated products, tinplate, plate, and slab. The ACIS segment produces a combination of flat, long, and tubular products. The Mining segment focuses on steel operations. The company was founded by Lakshmi Niwas Mittal in 1976 and is headquartered in Luxembourg.

Publicly traded companies mentioned herein: ArcelorMittal SA (MT)

Highlights

The presenter is long shares of ArcelorMittal SA (MT), the largest global steel maker outside of China that generates ~75% of its profits in North America, Brazil, and India. MT’s improved performance during unfavorable steel markets is promising, and its reported EBITDA will benefit from the inclusion of JV net income going forward. Additionally, management has guided to an incremental $1.8B of mid-cycle EBITDA from a slew of moderately sized capex projects that will be turned on by the end of 2026. At $26 per share, MT trades at just ~3.5x its 2023 EBITDA that was impacted by a weak steel environment, and the current valuation seems incrementally attractive compared to its BV of $66 per share. Based on continued EBITDA growth and share repurchases, he thinks the stock can double while also viewing MT as an attractive takeout / go private candidate.

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Idea Discussion

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