The excitement of investing in companies whose fortunes can be reversed is a major draw for some speculators. So even a company with no revenue, no profit, and a record of shortfalls can still find investors. Unfortunately, these risky investments often have little chance of paying off, and many investors pay a price to learn a lesson. A well-funded company may lose money for years, but ultimately needs to make a profit.
By contrast, many investors prefer to focus on companies that: ArcelorMittal (AMS:MT) and there is profit as well as revenue. Profit isn’t the only metric to consider when making an investment, but it’s worth recognizing companies that can consistently generate profits.
See the latest analysis for ArcelorMittal
How fast is ArcelorMittal’s earnings per share growing?
Over the past three years, ArcelorMittal’s earnings per share have increased. It’s a bit disingenuous to try to infer long-term estimates using these numbers. ArcelorMittal’s EPS surged from US$10.44 to US$16.04 in just one year. We bring smiles to our shareholders. That’s a respectable 54% increase.
One way to reassess a company’s growth is to look at how its revenue and earnings before interest (EBIT) margins are changing. In terms of earnings, ArcelorMittal has seen a decline over the last 12 months, with a 20% increase in earnings over the past year, taking him to US$84 billion, and the EBIT margin figures are less impressive. Hmm. Therefore, there is potential for further growth in the future, especially if his EBIT margin remains stable.
The chart below shows how the company’s bottom and top lines have progressed over time. Click on the graph to see exact numbers.
We live in the moment, but the future is arguably the most important part of the investment decision process. Why not check out this interactive chart showing ArcelorMittal’s future EPS projections?
Are ArcelorMittal insiders aligned with all shareholders?
It is inconceivable that a €21 billion company like ArcelorMittal is largely owned by insiders. But we are comforted by the fact that they have invested in the company. Specifically, it owns shares worth US$11 million. This large investment should help drive long-term value in your business. Despite being only 0.05% of the company, the value of that investment is enough to show that insiders are well on board with the venture.
Is ArcelorMittal worth your attention?
If you think the stock price depends on earnings per share, you need to dig deeper into ArcelorMittal’s strong EPS growth. This EPS growth of his is something the company should be proud of, so it’s no surprise that the insider holds a sizeable stake. Growth and insider confidence are well taken into account, so it’s worth further investigation to determine the true value of the stock.For a good example, we found 1 warning sign for ArcelorMittal you should know.
ArcelorMittal certainly looks good, but it might appeal to more investors if insiders were buying the stock.Click here if you want to see insider buying freedom Our list of growing companies being acquired by insiders might be just what you’re looking for.
Please note that insider trading discussed in this article refers to reportable trading in the relevant jurisdiction.
Do you have feedback on this article? What interests you? contact directly with us. Or send an email to our editorial team (at) Simplywallst.com.
This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
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