Morningstar Rating

Stock Research and Analysis

by Andrew Lane

Bulls Say

Product, end-market, and geographic diversification dilute the impact of any isolated areas of market weakness.
ArcelorMittal enjoys a modest degree of bargaining power over suppliers because of the immense scale of its operations.
Management's deleveraging efforts will reduce the drag on earnings associated with interest expense in the coming years. Read more 

Bears Say

The global steel industry is highly fragmented. As the largest steelmaker in the world, ArcelorMittal only has about a 6% market share.
Approximately one third of the company's steelmaking facilities operate on the highest quartile of the industry cost curve, reducing the likelihood that ArcelorMittal will become a low-cost steelmaker.
The company maintains a sizable debt position, and its deleveraging efforts reduce the likelihood that management will pursue dividend increases or share repurchases. Read more 

Management

Over the past two decades, CEO and chairman Lakshmi Mittal turned Mittal Steel from a family-owned steel business into the largest steel producer in the world. The Mittal family owns approximately 40% of outstanding shares and Mittal's son, Aditya,   Read more 

Profile

ArcelorMittal is the largest player in the global steel industry. Formed in 2006 via the merger of Arcelor and Mittal Steel, the two largest steelmakers at the time, ArcelorMittal   Read more 

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