About ArcelorMittal
ArcelorMittal South Africa Ltd manufactures and sells long and flat steel products. The company operates through Steel Operations, Non-Steel Operations, and Other. It offers flat steel products, including hot rolled plates, and hot and cold rolled coils. The company also offers long steel products, commercial coke, and by-products.
The company was formerly known as Mittal Steel South Africa Limited and changed its name to ArcelorMittal South Africa Ltd in October 2006. The company was founded in 1928 and is headquartered in Vanderbijlpark, South Africa. ArcelorMittal South Africa Ltd is a subsidiary of Arcelormittal Holdings Ag.
MT operates in the Manufacturing | Steel Works | approximately 157,900 employees | led by CEO Hendrik J. Verster.
$18.9 billion 13.3x P/E 0.3x P/B 2.4x EV/EBITDA 2.2% ROE -8.5% rev. growth 2.2% yield
Our six-factor quantitative model, which ranks 7,333 publicly traded U.S. companies on quality, value, momentum, investment efficiency, financial stability, and short interest positioning, assigns ArcelorMittal a Strong Buy rating with a composite score of 76/100 — placing it at rank #5 in the entire universe.
What makes this rating noteworthy is not any single exceptional factor, but the breadth of strength across the profile. ArcelorMittal's dominant factor is value at 98/100, followed closely by momentum at 84/100. Even the weakest factor, investment efficiency at 51/100, sits comfortably above average.
At $18.9 billion, ArcelorMittal operates in the Manufacturing sector where it ranks 2nd out of 50 stocks — the 96th percentile among its peers. A dividend yield of 2.2% adds an income component to the total return thesis.
Quality Analysis
ArcelorMittal's quality score of 71/100 reflects solid profitability that ranks above the majority of stocks. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 2.2% exceeds the sector median of -2.0%. Gross margins of 9.3% suggest a commodity-like business with thin pricing power. Operating margins of 5.3% sit above the 3.0% sector average.
Net margins of 2.2% are positive but thin, leaving limited margin for error.
Valuation Assessment
A value score of 98/100 puts MT in the top 2 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 13.3x, an EV/EBITDA of 2.4x, a price-to-book of 0.3x, a price-to-sales of 0.3x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
ArcelorMittal's momentum score of 84/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 84 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of -8.5% is declining, which makes the momentum signal more precarious. A beta of 1.11 means ArcelorMittal moves roughly in line with the broader market.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support ArcelorMittal's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
ArcelorMittal earns a Strong Buy rating with a composite score of 76/100 and 5 out of 5 stars, ranking #5 out of 7,333 stocks. The quantitative profile is among the strongest in the market — not because of any single factor, but because of consistent strength across multiple dimensions.
Stocks with this multi-factor profile have historically delivered above-average risk-adjusted returns over three to twelve month horizons. Whether that pattern holds for MT specifically is, of course, uncertain — quantitative models identify probabilities, not certainties.
Explore the full MT analysis page for interactive factor breakdowns, DCF valuation, and risk analytics, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
