|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||7.31 - 8.03|
|52 Week Range||5.56 - 9.15|
|PE Ratio (TTM)||6.15|
|Earnings Date||Apr 25, 2018 - Apr 30, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||8.00|
Cleveland-Cliffs' (CLF) revenues and margins are relatively lower than historical levels due to adoption of new revenue recognition standard.
Cleveland-Cliffs' (CLF) Q1 adjusted loss of 8 cents per share were narrower than the Zacks Consensus Estimate of a loss of 21 cents.
April 18, 2018, belonged to commodity stocks (COMT), some of which saw their highest one-day gains in months. Among the iron ore and diversified companies, Glencore (GLNCY) surged 7.7%, and Anglo American (AAUKY) saw price gains of 6.2%. BHP Billiton (BHP), Rio Tinto (RIO), Vale SA (VALE), and Cleveland-Cliffs (CLF) rose 3.3%, 4.0%, 4.2%, and 4.4%, respectively.
President Trump finalized the Section 232 tariffs in March and imposed a 25% tariff on steel and a 10% tariff on aluminum imports. Initially, President Trump indicated that there would be no country exemptions from the tariffs. US steel producers like U.S. Steel Corporation (X), AK Steel (AKS), and Nucor (NUE) rallied smartly as investors expected the Section 232 tariffs to lead to a sustainable fall in US steel imports.
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? Let’s use EV-to-forward EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) to value Cleveland-Cliffs (CLF) in relation to its peers and its historical multiples. Among Cliffs’ US steel peers, U.S. Steel Corporation (X) is trading at the lowest forward multiple of 4.5x, while Nucor (NUE) is trading at the highest multiple of 6.9x.
With the Section 232 tariffs, the US Commerce Department intends to improve the domestic steel industry’s capacity utilization rate. The US steel industry has operated at a capacity use ratio below 80% since November 2014. Low capacity use could be due to higher imports. US steel producers, including AK Steel (AKS), had to shut down some of their plants and curtail production in response to high import penetration levels. However, we’ve seen some respite from steel imports in February. Imports could fall further after the Section 232 tariffs. ...
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? 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).
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? Although investors are still concerned about Cleveland-Cliffs’ (CLF) debt, it’s 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.
Analysts’ EBITDA (earnings before interest, tax, depreciation, and amortization) estimates reflect expectations of a company’s future profitability. Analysts usually derive these estimates from revenue projections, margin assumptions, or cost projections.
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? Wall Street analysts expect Cleveland-Cliffs (CLF) to generate revenue of $200 million in 1Q18, which implies a fall of 57% YoY (year-over-year). This expectation resulted from the company’s guidance of only 1.0 million tons of sales volumes from its US division in 1Q18 compared to 3.1 million tons in 1Q17.
Of the ten analysts covering Cleveland-Cliffs (CLF) stock, 30% rate it as a “buy,” 60% rate it as a “hold,” and the remaining 10% rate it as a “sell.”
Cleveland-Cliffs (CLF) announced on April 6, 2018, that it expects to close its Australian operations by June 30, 2018. The main factors driving this decision were as follows: the increasingly discounted prices for lower-content iron ore the quality of the remaining iron ore reserves at its Asia-Pacific operations the lack of a legitimate offer from a qualified buyer
While Cleveland-Cliffs’ (CLF) Asia-Pacific Iron Ore (or APIO) segment doesn’t contribute much to its revenue and earnings, it still accounts for many of its stock price movements via changes in seaborne iron ore prices.
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? Realized prices also help assess the market sentiment, as they’re derived from existing market prices. Cleveland-Cliffs’ (CLF) realized prices came in at an average of $83.4 per ton in 4Q17, a rise of 13% YoY (year-over-year).
Chinese steel exports are important for steel investors. Last month, President Trump slapped a global steel tariff of 25% on all steel imports entering the United States. Although the tariffs were subsequently watered down to exempt some countries that collectively account for almost two-thirds of US steel imports, China is still covered under the tariffs.
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? Cleveland-Cliffs (CLF) achieved US volumes of ~5.4 million tons in 4Q17. Its volumes in the latest quarter reflect a YoY (year-over-year) fall of 22%. An above-average pace of shipping during the first nine months of 2017 and a previously highlighted reduction of pellet nominations by a customer reduced its volumes in 4Q17.
Can 1Q18 Pave the Way for Cleveland-Cliffs Stock to Re-Rate? Cleveland-Cliffs (CLF) will release its 1Q18 results before the US market opens on April 20, 2018. Cleveland-Cliffs’ 1Q18 results are important for investors for several reasons.
Investors in Cleveland-Cliffs (CLF) need to pay close attention to the stock based on moves in the options market lately.
Despite efforts to defuse trade tensions between the world’s two largest economies, we haven’t seen much of an improvement in the friction between the US and China (FXI). Notably, the trade war escalated recently after President Trump talked about a tariff on $100 billion worth of Chinese goods. China, which previously vowed a retaliation on $50 billion worth of US goods, exported only $130 billion worth of goods last year to the US.
During Vale Day on December 6, 2017, Vale (VALE) CFO (chief financial officer) Luciano Siani Pires said that the company deserves a valuation re-rating due to its improved predictability, transparency, and better governance practices. Currently, Vale has a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 5.7x, 10.0% lower than its five-year average.
Vale (VALE) believes that China’s fight against pollution has led to a huge variance between low-grade and high-grade material. It also expects the spreads between the 62% iron ore index and lower-grade ores to remain wide.