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Why ArcelorMittal (AMS:MT) Is An Attractive Investment To Consider

I’ve been keeping an eye on ArcelorMittal (AMS:MT) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MT has a lot to offer. Basically, it is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on ArcelorMittal here.

Flawless balance sheet with proven track record

Over the past year, MT has grown its earnings by 56%, with its most recent figure exceeding its annual average over the past five years. Not only did MT outperformed its past performance, its growth also surpassed the Metals and Mining industry expansion, which generated a 20% earnings growth. This is an notable feat for the company. MT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that MT manages its cash and cost levels well, which is an important determinant of the company’s health. MT appears to have made good use of debt, producing operating cash levels of 0.37x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

ENXTAM:MT Income Statement Export October 15th 18
ENXTAM:MT Income Statement Export October 15th 18

Next Steps:

For ArcelorMittal, I’ve compiled three pertinent factors you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for MT’s future growth? Take a look at our free research report of analyst consensus for MT’s outlook.

  2. Valuation: What is MT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MT is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.