|Bid||0.00 x 40000|
|Ask||8.68 x 1800|
|Day's Range||8.49 - 9.08|
|52 Week Range||5.56 - 9.15|
|PE Ratio (TTM)||8.33|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Currently, ten analysts covering Cleveland-Cliffs (CLF) stock are divided equally among “buy” and “hold” recommendations. CLF’s target price of $9.40 implies an upside of 10.2% compared to its current market price. Among its steel peers (SLX), ArcelorMittal (MT) has the highest “buy” ratings at 86%, followed by 73% for Steel Dynamics (STLD), 63% for U.S. Steel Corporation (X), and 63% for Nucor (NUE). AK Steel (AKS) has the lowest “buy” ratings at 33%.
Cleveland-Cliffs (CLF) stock has been on a roller coaster ride for most of 2018. While CLF stock has seen a lot of volatility in 2018, it’s making a strong upward move in the second quarter on strong fundamentals.
Rising inflation has extended into the lowly iron ore market, lifting American producer Cleveland-Cliffs Inc. ( CLF) to the highest high since January 2018. More importantly, the uptick may complete a bottoming pattern and breakout that generates the first rally into the mid-teens since 2014. The stock hasn't touched the 50-month exponential moving average (EMA) since 2012, when a downturn broke that support level, ahead of a brutal decline that ended at a 29-year low in 2016.
In this article, we’ll do a comparative analysis of steel companies’ 1Q18 free cash flows. You can define free cash flow as operating cash flow minus capital expenditure (or capex). It’s a measure of a business’s cash flow generation capacity.
Previously in this series, we compared steel companies’ 1Q18 shipments and ASPs (average selling price). In this article, we’ll take a look at their 1Q18 EBITDAs (earnings before interest, tax, depreciation, and amortization).
US steel companies, including U.S. Steel Corporation (X), Nucor (NUE), and Steel Dynamics (STLD), reported sequential as well as yearly rises in their 1Q18 ASPs (average selling price).
In this part, we’ll discuss some of the key takeaways from ArcelorMittal’s 1Q18 financial results. The company reported revenues of $19.2 billion in 1Q18—compared to $17.7 billion in 4Q17 and $16.0 billion in 1Q17. ArcelorMittal’s 1Q18 revenues were the highest since 3Q14. The company recorded multiyear highs on several other metrics during the quarter.
U.S. Steel Corporation: Has the Storm Settled Down? Like other steel producers, 2018 has been dismal for U.S. Steel Corporation (X). In our coverage of steel stocks, AK Steel (AKS) has lost 23.7%—the most during this period.
During the 1Q18 earnings call, U.S. Steel Corporation (X) said that it expects to post an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $1.7 billion–$1.8 billion in 2018. On the lower end, the guidance is $200 million higher compared to the guidance U.S. Steel Corporation provided during the 4Q17 earnings call.
As we discussed in the previous part, U.S. Steel Corporation (X) fell sharply after its 1Q18 earnings release. In this part, we’ll discuss how analysts see the stock after its 1Q18 earnings release.
In this series, we’ve looked at fundamental factors such as supply and demand in the US steel market and the seaborne iron ore market. In this part, we’ll see how the markets are valuing Cleveland-Cliffs (CLF) stock compared to its peers and the historical multiple.
China’s property market data pointed to a cooling down, but the latest data might signal that this cooling phase could be over. According to the latest data, Chinese new home prices appear to be stabilizing. The country’s home prices were in a broad downtrend after Chinese authorities deliberately tried to normalize the property markets in late 2016 after the market heated up.
Iron ore price volatility has refused to die down. After remaining firm in the first two months of 2018, iron ore prices tumbled in March. While prices stayed strong in April, the last week of the month saw pressure returning on the steelmaking commodity. Its losses have increased to 4% since April 19 to close the month at $65.70 per ton.
In the US steel sector, demand for steel drives revenues for US steelmakers (SLX) (XME). As a result, investors interested in Cleveland-Cliffs (CLF) track US steel demand. In this part of our series, we’ll see how investors can track the demand for US steel by monitoring demand indicators.
US steel production is the key variable that drives revenues for US steelmakers (SLX) (XME). Steelmakers AK Steel (AKS) and ArcelorMittal (MT) are Cleveland-Cliffs’s (CLF) customers. CLF investors track this data to get a sense of the direction that overall volumes are taking.
The US iron ore segment contributes most of Cleveland-Cliffs’s (CLF) revenues and earnings. Steel imports into the United States directly impact the company’s customers, including AK Steel (AKS) and ArcelorMittal (MT). According to data released by the United States Census Bureau, imports for March 2–18 were 3.3 million tons, which is a huge surge of 34.2% compared to February.
The 1Q18 earnings season for US steelmakers has come to an end. Cleveland-Cliffs (CLF) released its 1Q18 earnings on April 20 before the market opened. While its earnings were a miss on consensus expectations, its revenues beat market expectations.
Do Indicators Point to Strengthening Steel Market Conditions? In this part, we’ll discuss the recent trend in US steel production. According to the American Iron and Steel Institute, the US steel industry’s capacity utilization rate was 76.3% for the week ending April 21.
The energy industry is among the leading steel end consumers. The sector accounted for ~10% of the US steel demand in 2014. As crude oil prices fell, so did the energy sector’s steel appetite. U.S. Steel Corporation (X) was impacted by the energy sector’s lower steel appetite. The company had higher exposure to the energy industry. Among other steel companies, AK Steel (AKS) has lower exposure to the energy sector. AK Steel gets most of its revenues from the automotive sector. ArcelorMittal (MT) is the largest global supplier to automotive companies.
We’re in the middle of the 1Q18 earnings season. Nucor (NUE), Cleveland-Cliffs (CLF), U.S. Steel Corporation (X), and AK Steel (AKS) have already released their 1Q18 earnings.
To start with, Trump exempted Canada and Mexico from the stringent tariffs amid ongoing NAFTA (North American Free Trade Agreement) talks. Subsequently, the European Union, Brazil, South Korea, Argentina, and Australia were also temporarily exempted from the tariffs.
When it comes to estimating demand for a commodity, considering a country that single-handedly consumes more than 70% of the commodity is imperative. We’re talking, of course, about seaborne-traded iron ore and China. It’s vital to track Chinese iron ore imports to gauge the direction of future prices.
Iron ore port inventories in China reflect the balance between demand and supply. Usually, if iron ore isn’t used up by steel mills, it piles up at ports. Because this indicator helps provide a sense of the direction of iron ore prices, it’s important to track.