8.77 0.00 (0.00%)
Pre-Market: 4:00AM EDT
|Bid||8.40 x 900|
|Ask||8.80 x 800|
|Day's Range||8.54 - 8.80|
|52 Week Range||5.60 - 9.15|
|PE Ratio (TTM)||8.49|
|Earnings Date||Jul 20, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||10.10|
In this part of the series, we’ll look at Cleveland-Cliffs’ (CLF) valuation and compare it to those of its US steel peers. We’ll also look at its forward EV-to-EBITDA (enterprise value-to-EBITDA) and PE multiples.
Cleveland-Cliffs Inc. is responding to a false report issued today by a company called Mesabi Metallics Company LLC that there is a “commitment” between Cliffs’ managed mine, Hibbing Taconite, and Mesabi Metallics to supply the Hibbing operation with crude ore.
Cleveland-Cliffs (CLF) has accumulated debt over a number of years. In this context, we’ll discuss Cleveland-Cliffs’ ability to generate FCF (free cash flow). Cliffs generated FCF of $182 million in 2017, which mostly went toward the enhancement of its core business, including its acquisition of the remaining minority interest in both the Tilden and Empire mines.
Cleveland-Cliffs (CLF) has come a long way with respect to its debt levels. Following the company’s change in management in 2014 and its focus on debt reduction as the utmost priority, investors’ concerns have been allayed somewhat. The company ended the first quarter with net debt of $1.3 billion, its lowest level in the last six years.
Analysts’ EBITDA estimates reflect their expectations for a company’s future profitability. Analysts usually derive these estimates from revenue projections, margin assumptions, or cost projections.
Wall Street analysts expect Cleveland-Cliffs (CLF) to generate revenue of $642 million in the second quarter, which implies a rise of 12.8% YoY (year-over-year). As we discussed earlier, US steel prices have been skyrocketing lately. This development should also support the realized prices of US steelmakers (SLX) AK Steel (AKS), U.S. Steel Corporation (X), and ArcelorMittal (MT).
Cleveland-Cliffs (CLF) stock has received five upgrades (including initiations) and just one downgrade in 2018 so far, according to MarketBeat.
WallStEquities.com evaluates BHP Billiton Ltd (NYSE: BHP), Cameco Corp. (NYSE: CCJ), Cleveland-Cliffs Inc. (NYSE: CLF), and Cloud Peak Energy Inc. (NYSE: CLD). Last Friday, Melbourne, Australia headquartered BHP Billiton Ltd's stock declined 1.07%, to close the day at $49.12.
Cleveland-Cliffs (CLF) achieved US volumes of ~1.6 million tons in the first quarter. Its volumes in the quarter reflected a YoY (year-over-year) fall of 48%. Its customers’ low pellet inventories and favorable shipping conditions helped it to deliver increased volumes at the end of March.
Cleveland-Cliffs (CLF) will release its second-quarter results before the market opens on July 20. Cleveland-Cliffs’ second-quarter results are important for investors for several reasons. Due to the impact of tariffs, there has been a significant upward revision in domestic steel prices since then.
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Forecast-topping Q1 results and buoyant outlook for its U.S. Iron Ore business have contributed to the rally in Cleveland-Cliffs' (CLF) stock.
Cleveland-Cliffs (CLF) is seeing solid earnings estimate revision activity and is a great company from a Zacks Industry Rank perspective.
Iron ore prices have been falling lately due to the general pressure on commodities following the escalation of trade war tensions. But, overall, prices have traded in a narrow range of $64–$68 per ton, as is evident in the graph below. While prices were supported in April and early May by China’s announcement of a cut in bank reserve requirements, rising inventory concerns eventually pushed them down.
US steel production is the key variable that drives US steelmakers’ (SLX) (XME) revenues. AK Steel and ArcelorMittal are Cleveland-Cliffs’ (CLF) customers. Investors track production data to get a sense of the direction of overall volumes.
In the first half of 2018, US steel stocks and Cleveland-Cliffs (CLF) saw a lot of volatility. Steel tariffs have changed the US steel industry’s dynamics completely. The spike in steel prices is expected to support steel companies’ earnings this year.
Investors need to pay close attention to Cleveland-Cliffs (CLF) stock based on the movements in the options market lately.
In this part of the series, we’ll look at Cleveland-Cliffs’s (CLF) valuation and compare it to its US steel peers. Among the US steel stocks, Nucor (NUE) is trading at the highest forward multiple of 6.5x. U.S. Steel (X) and ArcelorMittal (MT) have the lowest multiples of 4.2x and 4.5x, respectively.
Cleveland-Cliffs (CLF) stock has received four upgrades (including initiations) and just one downgrade in 2018 thus far, according to MarketBeat. Before we discuss the recent upgrades and the reasons for them, let’s take a look at the consensus analyst ratings for the stock and its peers.
As Cleveland-Cliffs’s (CLF) debt repayment concerns have been mostly taken care of, at least in the short-to-medium term, it has started refocusing on growth. Steel Dynamics (STLD) and Nucor (NUE) use EAFs to produce steel, while U.S. Steel (X) and ArcelorMittal (MT) mostly use iron ore for steel production.