NYSE:CLF

Stock Analysis Report

Executive Summary

Cleveland-Cliffs Inc. operates as an iron ore mining company in the United States, Canada, and internationally.

Snowflake

Fundamentals

Solid track record and good value.

Risks

  • Cleveland-Cliffs has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Cleveland-Cliffs's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.3%

NYSE:CLF

-0.1%

US Metals and Mining

-1.6%

US Market


1 Year Return

-19.3%

NYSE:CLF

-17.0%

US Metals and Mining

-3.0%

US Market

CLF underperformed the Metals and Mining industry which returned -17% over the past year.

CLF underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

CLFIndustryMarket
7 Day-2.3%-0.1%-1.6%
30 Day-26.9%-10.0%-5.7%
90 Day-14.4%2.4%0.2%
1 Year-18.0%-19.3%-14.6%-17.0%-0.8%-3.0%
3 Year40.4%38.1%2.9%-2.3%38.1%29.1%
5 Year-45.5%-47.1%-19.1%-25.1%50.8%34.1%

Price Volatility Vs. Market

How volatile is Cleveland-Cliffs's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cleveland-Cliffs undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cleveland-Cliffs's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cleveland-Cliffs's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Cleveland-Cliffs is good value based on earnings compared to the US Metals and Mining industry average.

Cleveland-Cliffs is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cleveland-Cliffs earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Cleveland-Cliffs is overvalued based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

How is Cleveland-Cliffs expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

-20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cleveland-Cliffs's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Cleveland-Cliffs's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Cleveland-Cliffs's revenue growth is positive but not above the United States of America market average.

Cleveland-Cliffs's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Cleveland-Cliffs's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cleveland-Cliffs is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Cleveland-Cliffs performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cleveland-Cliffs's year on year earnings growth rate has been positive over the past 5 years.

Cleveland-Cliffs's 1-year earnings growth exceeds its 5-year average (68.5% vs 3.2%)

Cleveland-Cliffs's earnings growth has exceeded the US Metals and Mining industry average in the past year (68.5% vs 27.1%).


Return on Equity

Whilst Cleveland-Cliffs made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Cleveland-Cliffs used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Cleveland-Cliffs has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cleveland-Cliffs's financial position?


Financial Position Analysis

Cleveland-Cliffs is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cleveland-Cliffs's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cleveland-Cliffs's level of debt (731.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (50.7% vs 731.3% today).

Debt is well covered by operating cash flow (33.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is Cleveland-Cliffs's current dividend yield, its reliability and sustainability?

2.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cleveland-Cliffs's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Cleveland-Cliffs's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (20.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6.6x coverage).


Next Steps

Management

What is the CEO of Cleveland-Cliffs's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

C. Goncalves (61yo)

5.0yrs

Tenure

US$15,443,927

Compensation

Mr. C. Lourenco Goncalves has been the Chairman, Chief Executive Officer and President at Cleveland-Cliffs Inc. since August 7, 2014. Mr. Goncalves is responsible for overseeing and facilitating communicat ...


CEO Compensation Analysis

C.'s remuneration is higher than average for companies of similar size in United States of America.

C.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.0yrs

Average Tenure

54yo

Average Age

The average tenure for the Cleveland-Cliffs management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.0yrs

Average Tenure

61.5yo

Average Age

The tenure for the Cleveland-Cliffs board of directors is about average.


Insider Trading

More shares have been bought than sold by Cleveland-Cliffs individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$57,89022 Aug 19
John Baldwin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,000
Max PriceUS$8.27
BuyUS$100,99922 Aug 19
Keith Koci
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares12,500
Max PriceUS$8.08
BuyUS$26,52008 Aug 19
Robert Fisher
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$8.84
BuyUS$52,20008 Aug 19
John Baldwin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,000
Max PriceUS$8.70
BuyUS$251,68207 Aug 19
Keith Koci
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares30,000
Max PriceUS$8.39
BuyUS$93,59710 Jun 19
C. Goncalves
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares10,000
Max PriceUS$9.36
BuyUS$26,74503 Jun 19
Robert Fisher
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$8.92
BuyUS$48,25023 May 19
Keith Koci
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$9.65
BuyUS$48,50013 May 19
Eric Rychel
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$9.70
BuyUS$73,20002 May 19
Michael Siegal
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,500
Max PriceUS$9.76
SellUS$127,76208 Mar 19
Susan Green
EntityIndividual
Role
Member of the Board of Directors
Director
Shares12,700
Max PriceUS$10.06
BuyUS$103,68028 Feb 19
Keith Koci
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares9,000
Max PriceUS$11.52
BuyUS$35,93619 Feb 19
Keith Koci
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,200
Max PriceUS$11.23

Ownership Breakdown


Management Team

  • R. Cebula (48yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 2.5yrs
  • C. Goncalves (61yo)

    Chairman

    • Tenure: 5.0yrs
    • Compensation: US$15.44m
  • Cliff Smith (59yo)

    Executive VP & COO

    • Tenure: 0.6yrs
    • Compensation: US$2.39m
  • Keith Koci (54yo)

    Executive VP & CFO

    • Tenure: 0.5yrs
  • Terry Mee (49yo)

    Executive Vice President of Global Commercial

    • Tenure: 8.6yrs
  • Terry Fedor (54yo)

    Executive Vice President of Operations

    • Tenure: 5.6yrs
    • Compensation: US$2.41m
  • Pat Persico

    Director of Corporate Communications

    • Tenure: 7.3yrs
  • James Graham (53yo)

    Executive VP

    • Tenure: 6.4yrs
  • Maurice Harapiak (57yo)

    Executive VP of HR & Chief Administration Officer

    • Tenure: 1.6yrs
    • Compensation: US$2.41m
  • Paul Finan

    Director of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Joseph Rutkowski (64yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$226.00k
  • John Baldwin (62yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$244.00k
  • Michael Siegal (67yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$220.00k
  • Gabriel Stoliar (65yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$220.00k
  • M. Harlan (59yo)

    Independent Director

    • Tenure: 0.6yrs
  • C. Goncalves (61yo)

    Chairman

    • Tenure: 5.0yrs
    • Compensation: US$15.44m
  • Susan Green (60yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$220.00k
  • Douglas Taylor (55yo)

    Lead Director

    • Tenure: 5.0yrs
    • Compensation: US$281.50k
  • Robert Fisher (64yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$227.50k
  • Eric Rychel (46yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$220.00k

Company Information

Cleveland-Cliffs Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cleveland-Cliffs Inc.
  • Ticker: CLF
  • Exchange: NYSE
  • Founded: 1847
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$2.152b
  • Shares outstanding: 270.05m
  • Website: https://www.clevelandcliffs.com

Number of Employees


Location

  • Cleveland-Cliffs Inc.
  • 200 Public Square
  • Suite 3300
  • Cleveland
  • Ohio
  • 44114
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVADB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
CLFNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
CLF *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
0I0HLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968

Biography

Cleveland-Cliffs Inc. operates as an iron ore mining company in the United States, Canada, and internationally. The company operates four iron ore mines, including the Tilden mine in Michigan; and the Nort ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:18
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.