Morningstar Rating

Stock Research and Analysis

by Andrew Lane

Bulls Say

Product, end market, and geographic diversification dilute the companywide impact of any isolated areas of market weakness.
ArcelorMittal retains significant bargaining power over suppliers because of the immense scale of its operations.
Management's progress deleveraging the balance sheet means the drag on earnings associated with interest expense will be materially reduced in the coming years. Read more 

Bears Say

The global steel industry is highly fragmented. Even as the largest steelmaker in the world, ArcelorMittal only has about a 6% market share.
Approximately one third of the company's steelmaking facilities exist on the highest quartile of the industry cost curve, reducing the likelihood that ArcelorMittal will ever be a low-cost steel producer.
The company maintains a sizable debt burden, 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. With his appointment of his son, Aditya Mittal, to the CFO post, the Mittal family owns approximately   Read more 

Profile

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

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