Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

ArcelorMittal S.A. (MT.AS)

Company Dividend Discount ModelIndustry: SteelSector: Basic Materials

Valuation Snapshot

Stable Growth$26.06 - $38.58$32.05
Multi-Stage$65.54 - $72.34$68.87
Blended Fair Value$50.46
Current Price$31.67
Upside59.33%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.12%-1.52%0.510.480.430.400.230.260.280.180.080.54
YoY Growth--6.50%11.14%6.41%72.38%-10.84%-7.73%56.03%131.15%-85.34%-9.17%
Dividend Yield--1.77%1.73%1.42%1.24%0.81%2.74%1.32%0.57%0.31%3.95%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,585.00
(-) Cash Dividends Paid (M)449.00
(=) Cash Retained (M)2,136.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)517.00323.13193.88
Cash Retained (M)2,136.002,136.002,136.00
(-) Cash Required (M)-517.00-323.13-193.88
(=) Excess Retained (M)1,619.001,812.881,942.13
(/) Shares Outstanding (M)775.75775.75775.75
(=) Excess Retained per Share2.092.342.50
LTM Dividend per Share0.580.580.58
(+) Excess Retained per Share2.092.342.50
(=) Adjusted Dividend2.672.923.08
WACC / Discount Rate6.35%6.35%6.35%
Growth Rate-3.52%-2.52%-1.52%
Fair Value$26.06$32.05$38.58
Upside / Downside-17.71%1.19%21.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,585.002,519.892,456.412,394.542,334.222,275.422,343.68
Payout Ratio17.37%31.90%46.42%60.95%75.47%90.00%92.50%
Projected Dividends (M)449.00803.731,140.311,459.421,761.732,047.882,167.91

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.35%6.35%6.35%
Growth Rate-3.52%-2.52%-1.52%
Year 1 PV (M)747.99755.74763.49
Year 2 PV (M)987.621,008.201,028.99
Year 3 PV (M)1,176.341,213.291,251.02
Year 4 PV (M)1,321.521,377.171,434.56
Year 5 PV (M)1,429.631,505.281,584.08
PV of Terminal Value (M)45,176.3847,566.6250,056.98
Equity Value (M)50,839.4853,426.3056,119.12
Shares Outstanding (M)775.75775.75775.75
Fair Value$65.54$68.87$72.34
Upside / Downside106.93%117.46%128.42%

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