|Bid||8.30 x 1000|
|Ask||8.75 x 1000|
|Day's Range||8.39 - 8.65|
|52 Week Range||5.56 - 12.37|
|PE Ratio (TTM)||17.27|
|Earnings Date||Jan 25, 2018|
|Forward Dividend & Yield||0.00 (0.00%)|
|1y Target Est||7.31|
Vale SA’s (VALE) forward EV-to-EBITDA (enterprise value to earnings before, interest, tax, depreciation, and amortization) multiple is trading at close to 7.2x, the highest among its seaborne iron ore peers. Rio Tinto (RIO) and BHP Billiton (BHP) are trading at similar forward multiples of 6.6x and 6.7x, respectively. As we’ve previously mentioned, Cleveland-Cliffs (CLF) is a US-focused player with small direct exposure to the seaborne iron ore market.
Earlier in this series, we analyzed iron ore miners’ ratings and estimates. In this article, we’ll discuss these miners’ technical indicators. The trailing-three-month returns of all of the miners we’ve discussed are positive.
Wall Street analysts are estimating that Cleveland-Cliffs (CLF) will generate revenues of $2.3 billion in 2017 and $607.5 million in 4Q17. While the revenues for the full year reflect growth of 11% year-over-year (or YoY) on overall higher volumes and higher received prices, the revenues for the fourth quarter imply a drop of 19.4% YoY. The volumes for the Asia-Pacific division, on the other hand, are expected to be flat YoY at 11.5 million tons.
In this article, we’ll discuss analysts’ projections for Cleveland-Cliffs (CLF). Currently, US steel imports and US steel prices are the major factors affecting Cliffs’ estimates. Analysts expect Cleveland-Cliffs to report revenue of $2.3 billion in 2017, which would imply a rise of 11.1% YoY (year-over-year).
The majority of ratings for BHP Billiton (BHP) are “buys,” with 61% of analysts recommending as much on the stock. The consensus target price for BHP is $30.0, which implies a potential downside of -3.1% based on its current market price. BHP’s most recent rating change came from JPMorgan Chase (JPM), which upgraded the stock from an “underweight” to a “neutral” on December 14, 2017.
Steel prices are the key driver of steel companies’ profitability. For instance, steel prices tend to be strong in the first half of the year on strong domestic demand and inventory restocking. For instance, in 2015, steel prices were weak throughout the year.
NEW YORK, NY / ACCESSWIRE / January 12, 2017 / U.S. markets rallied sharply Thursday as investor focus has now shifted to the upcoming earnings season. The Dow Jones Industrial Average jumped 0.81 percent ...
US Steel Industry’s 2018 Outlook: Can the Momentum Continue? As we noted previously, the outlook for US steel demand (X) (AKS) seems fairly bullish this year. Since China is the world’s largest steel consumer (CLF), the country’s steel demand tends to impact global steel markets.
Currently, the last three-month stock returns for all major iron ore and US steel companies have been positive. U.S. Steel (X) has given the highest positive return of 37.4%. Steel Dynamics (STLD) follows with a return of 25.6%.
In this part, we’ll discuss how markets are valuing Cleveland-Cliffs’ (CLF) stock versus its peers as we head into 2018. For this purpose, we’ll use the EV-to-forward EBITDA multiple. Among the US steel and iron ore peers, Nucor (NUE) is trading at the highest forward multiple of 7.7x.
To understand the usage outlook for steel in China, we’ll analyze China’s property and auto sector sales in this article. China’s property sector is a steel-intensive market—consuming approximately 50% of overall steel in the country—followed by the automotive industry. The recent indicators from China are signaling a slowdown in the Chinese property market.