CLEVELAND-CLIFFS INC (CLF)

US1858991011 - Common Stock

22.74  +0.61 (+2.76%)

After market: 22.7799 +0.04 (+0.18%)

Fundamental Rating

4

Taking everything into account, CLF scores 4 out of 10 in our fundamental rating. CLF was compared to 156 industry peers in the Metals & Mining industry. Both the profitability and the financial health of CLF get a neutral evaluation. Nothing too spectacular is happening here. CLF has a correct valuation and a medium growth rate.



4

1. Profitability

1.1 Basic Checks

In the past year CLF was profitable.
In the past year CLF had a positive cash flow from operations.
CLF had positive earnings in 4 of the past 5 years.
CLF had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 2.28%, CLF is doing good in the industry, outperforming 66.03% of the companies in the same industry.
CLF has a better Return On Equity (5.06%) than 65.38% of its industry peers.
CLF's Return On Invested Capital of 4.25% is in line compared to the rest of the industry. CLF outperforms 59.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLF is above the industry average of 9.21%.
The 3 year average ROIC (11.26%) for CLF is well above the current ROIC(4.25%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 2.28%
ROE 5.06%
ROIC 4.25%
ROA(3y)8.38%
ROA(5y)6.55%
ROE(3y)25.54%
ROE(5y)30.81%
ROIC(3y)11.26%
ROIC(5y)9.09%

1.3 Margins

CLF's Profit Margin of 1.81% is in line compared to the rest of the industry. CLF outperforms 59.62% of its industry peers.
In the last couple of years the Profit Margin of CLF has declined.
With a Operating Margin value of 3.57%, CLF perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
CLF's Operating Margin has declined in the last couple of years.
CLF has a Gross Margin of 6.32%. This is in the lower half of the industry: CLF underperforms 64.10% of its industry peers.
CLF's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.57%
PM (TTM) 1.81%
GM 6.32%
OM growth 3Y3.41%
OM growth 5Y-34.19%
PM growth 3YN/A
PM growth 5Y-48.14%
GM growth 3Y-10.8%
GM growth 5Y-28.89%

5

2. Health

2.1 Basic Checks

CLF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CLF has less shares outstanding
Compared to 5 years ago, CLF has more shares outstanding
Compared to 1 year ago, CLF has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.44 indicates that CLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.44, CLF is in line with its industry, outperforming 51.92% of the companies in the same industry.
CLF has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as CLF would need 2.07 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.07, CLF belongs to the best of the industry, outperforming 80.13% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that CLF is not too dependend on debt financing.
CLF's Debt to Equity ratio of 0.42 is on the low side compared to the rest of the industry. CLF is outperformed by 73.08% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLF, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 2.07
Altman-Z 2.44
ROIC/WACC0.53
WACC8%

2.3 Liquidity

CLF has a Current Ratio of 1.89. This is a normal value and indicates that CLF is financially healthy and should not expect problems in meeting its short term obligations.
CLF's Current ratio of 1.89 is on the low side compared to the rest of the industry. CLF is outperformed by 62.82% of its industry peers.
CLF has a Quick Ratio of 1.89. This is a bad value and indicates that CLF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.62, CLF is doing worse than 89.74% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.89
Quick Ratio 0.62

4

3. Growth

3.1 Past

CLF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.96%.
The earnings per share for CLF have been decreasing by -19.03% on average. This is quite bad
Looking at the last year, CLF shows a decrease in Revenue. The Revenue has decreased by -4.32% in the last year.
Measured over the past years, CLF shows a very strong growth in Revenue. The Revenue has been growing by 56.65% on average per year.
EPS 1Y (TTM)-58.96%
EPS 3YN/A
EPS 5Y-19.03%
EPS growth Q2Q87.8%
Revenue 1Y (TTM)-4.32%
Revenue growth 3Y60.16%
Revenue growth 5Y56.65%
Revenue growth Q2Q1.35%

3.2 Future

CLF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.63% yearly.
The Revenue is expected to decrease by -1.15% on average over the next years.
EPS Next Y66.38%
EPS Next 2Y44.55%
EPS Next 3Y32.63%
EPS Next 5YN/A
Revenue Next Year-1.77%
Revenue Next 2Y-2.06%
Revenue Next 3Y-1.15%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 22.08, CLF is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CLF indicates a somewhat cheap valuation: CLF is cheaper than 69.87% of the companies listed in the same industry.
CLF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.27, CLF is valued correctly.
CLF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CLF is cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, CLF is valued a bit cheaper.
Industry RankSector Rank
PE 22.08
Fwd PE 13.27

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CLF is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CLF is valued cheaply inside the industry as 93.59% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.99
EV/EBITDA 8.06

4.3 Compensation for Growth

CLF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CLF's earnings are expected to grow with 32.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y44.55%
EPS Next 3Y32.63%

0

5. Dividend

5.1 Amount

No dividends for CLF!.
Industry RankSector Rank
Dividend Yield N/A

CLEVELAND-CLIFFS INC

NYSE:CLF (3/28/2024, 8:04:00 PM)

After market: 22.7799 +0.04 (+0.18%)

22.74

+0.61 (+2.76%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.33B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 22.08
Fwd PE 13.27
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.33
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.28%
ROE 5.06%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.57%
PM (TTM) 1.81%
GM 6.32%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.25
Health
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.89
Quick Ratio 0.62
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-58.96%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y66.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.32%
Revenue growth 3Y60.16%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y