NYSE:CLF

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Exceptional growth potential and undervalued.


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

Stable Share Price: CLF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

CLF

3.8%

US Metals and Mining

4.3%

US Market


1 Year Return

-47.3%

CLF

5.4%

US Metals and Mining

7.4%

US Market

Return vs Industry: CLF underperformed the US Metals and Mining industry which returned 1.6% over the past year.

Return vs Market: CLF underperformed the US Market which returned 5% over the past year.


Shareholder returns

CLFIndustryMarket
7 Day3.3%3.8%4.3%
30 Day-13.9%3.1%0.5%
90 Day36.1%31.3%23.0%
1 Year-45.2%-47.3%8.0%5.4%9.7%7.4%
3 Year-16.4%-20.9%10.9%3.8%38.3%29.2%
5 Year67.4%58.5%43.4%31.3%66.0%47.6%

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 compared to its fair value and its price relative to the market?

26.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLF ($5.58) is trading below our estimate of fair value ($7.63)

Significantly Below Fair Value: CLF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLF is good value based on its PE Ratio (5.9x) compared to the Metals and Mining industry average (8.6x).

PE vs Market: CLF is good value based on its PE Ratio (5.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: CLF is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: CLF is overvalued based on its PB Ratio (2.5x) compared to the US Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Cleveland-Cliffs forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

77.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLF's forecast earnings growth (77.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CLF's earnings (77.3% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CLF's revenue (35.7% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: CLF's revenue (35.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLF's Return on Equity is forecast to be high in 3 years time (40%)


Next Steps

Past Performance

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

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLF has a large one-off loss of $86.9M impacting its March 31 2020 financial results.

Growing Profit Margin: CLF's current net profit margins (12%) are lower than last year (44.6%).


Past Earnings Growth Analysis

Earnings Trend: CLF's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: CLF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CLF had negative earnings growth (-74.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (-11.3%).


Return on Equity

High ROE: Whilst CLF's Return on Equity (21.72%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Cleveland-Cliffs's financial position?


Financial Position Analysis

Short Term Liabilities: CLF's short term assets ($3.1B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: CLF's short term assets ($3.1B) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: CLF's debt to equity ratio (353.9%) is considered high.

Reducing Debt: CLF had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: CLF's debt is not well covered by operating cash flow (11.8%).

Interest Coverage: CLF's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.15%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CLF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CLF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CLF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CLF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CLF is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CLF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

C. Goncalves (62yo)

5.92yrs

Tenure

US$16,066,089

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

Compensation vs Market: C.'s total compensation ($USD16.07M) is above average for companies of similar size in the US market ($USD4.71M).

Compensation vs Earnings: C.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
C. Goncalves
Chairman5.92yrsUS$16.07m0.78% $17.4m
Keith Koci
Executive VP & CFO1.42yrsUS$2.05m0.025% $546.9k
Clifford Smith
Executive VP & COO1.5yrsUS$3.71m0.068% $1.5m
Maurice Harapiak
Executive VP of HR & Chief Administration Officer2.5yrsUS$2.64m0.057% $1.3m
Terry Fedor
Executive VP & COO of Steel Millss6.5yrsUS$2.75m0.061% $1.4m
Kimberly Floriani
VP, Corporate Controller & Chief Accounting Officer0.25yrno data0.0045% $100.8k
Paul Finan
Director of Investor Relationsno datano datano data
James Graham
Executive VP7.33yrsno data0.051% $1.1m
Patricia Persico
Director of Corporate Communications8.17yrsno datano data
R. Cebula
Senior VP & Chief Administration Officer of Steel Mills3.42yrsno data0.026% $581.6k

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: CLF's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. Goncalves
Chairman5.92yrsUS$16.07m0.78% $17.4m
Ralph Michael
Director0.33yrno data0.033% $728.7k
John Baldwin
Independent Director5.83yrsUS$244.00k0.034% $746.2k
Gabriel Stoliar
Independent Director6yrsUS$220.00k0.054% $1.2m
M. Harlan
Independent Director1.5yrsUS$234.23k0.015% $342.5k
Susan Green
Independent Director13.5yrsUS$220.00k0.026% $572.3k
Douglas Taylor
Lead Independent Director5.92yrsUS$283.00k0.048% $1.1m
Robert Fisher
Independent Director6yrsUS$220.00k0.041% $919.5k
Eric Rychel
Independent Director3.75yrsUS$220.00k0.0072% $160.8k
Janet Miller
Independent Director1.5yrsUS$234.23k0.015% $337.6k

5.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CLF's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 40.9%.


Top Shareholders

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$2.224b
  • Shares outstanding: 398.61m
  • Website: https://www.clevelandcliffs.com

Number of Employees


Location

  • Cleveland-Cliffs Inc.
  • 200 Public Square
  • Suite 3300
  • Cleveland
  • Ohio
  • 44114-2315
  • 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 independent iron ore mining company in the United States, Canada, and internationally. It operates in two segments, Mining and Pelletizing, and Metallics. The company operates three iron ore mines, including the Tilden mine in Michigan; and the Northshore and United Taconite mines in Minnesota, as well as holds 23% stake in the Hibbing mine in Minnesota. It produces various grades of iron ore pellets, including standard, fluxed, and DR-grade for blast furnace steel producers; and flat-rolled carbon, stainless, and electrical steel products primarily for the automotive, infrastructure, and manufacturing markets. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 23:54
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.