By
Brian D. Pacampara
|
More Articles
August 31, 2011
|
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 coveted five-star ranking.
With that in mind, let's take a closer look at ArcelorMittal's business and see what CAPS investors are saying about the stock right now.
ArcelorMittal facts
| Headquarters (Founded) |
Luxembourg (1989) |
| Market Cap |
$33.1 billion |
| Industry |
Steel |
| Trailing-12-Month Revenue |
$87.75 billion |
| Management |
Chairman/CEO Lakshmi Mittal
CFO Aditya Mittal
|
| Return on Equity (Average, Past 3 Years) |
4% |
| Cash/Debt |
$3.1 billion / $28.2 billion |
| Dividend Yield |
3.6% |
| Competitors |
Nucor (NYSE: NUE )
United States Steel (NYSE: X )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 1,713 members who have rated ArcelorMittal believe the stock will outperform the S&P 500 going forward. These bulls include eksummers620 and ValueMan1988.
Earlier this month, eksummers620 tapped ArcelorMittal as a solid steal: "This is a seriously undervalued stock that looks to appreciate in the event that the global economy stabilizes."
In fact, ArcelorMittal currently sports a particularly paltry price-to-book of 0.5. That represents a clear discount to other steel plays like Nucor (1.5), U.S. Steel (1.0), and Gerdau (NYSE: GGB ) (1.0).
CAPS member ValueMan1988 elaborates on the bargain opportunity:
Largest steel producer in the world. Super cheap, In the 2008 crash it went down to 18.00-19.00 something per/share, so $19.60 should be a good entry right now.
When the economy picks back up, $80/share would not be unreasonable for this company. ...
Financials are sound. Things like P/book, P/S and so forth look ridiculously cheap. With a total Debt/Equity less than .4, the company is having an easy time paying off its debt.
As a long term investor, this is a great company to buy at a great time. "When there is blood in the streets, be greedy" -[Warren Buffett].
What do you think about ArcelorMittal, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track ArcelorMittal? Add it to your watchlist.
RSS Headlines
Fool UK