Why ArcelorMittal Looks Solid

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, steel giant ArcelorMittal (NYSE: MT  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at ArcelorMittal and see what CAPS investors are saying about the stock right now.

ArcelorMittal facts

Headquarters (Founded)

Luxembourg (1989)

Market Cap

$27.1 billion

Industry

Steel

Trailing-12-Month Revenue

$87.4 billion

Management

Chairman/CEO Lakshmi Mittal
CFO Aditya Mittal

Return on Capital (Average, Past 3 Years)

3.3%

Cash/Debt

$3.0 billion / $26.6 billion

Dividend Yield

3.6%

Competitors

POSCO (NYSE: PKX  )
Nucor
(NYSE: NUE  )
United States Steel
(NYSE: X  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 2,119 members who have rated ArcelorMittal believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, All-Star athenamike, tapped ArcelorMittal as a solid bargain opportunity:

Largest integrated steel manufacturer in the world can probably weather the storm in steel prices and grow again when the global economy recovers. High debt level, over-capacity from Asia, and economic problems in Europe are all risks, but this has been over-discounted in the price. Broad geographic and product diversification, higher grade steel, and [vertical] integration provide some protection on the downside.

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