|Bid||0.00 x 800|
|Ask||0.00 x 1100|
|Day's Range||42.92 - 43.35|
|52 Week Range||39.22 - 51.92|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.56%|
Veronique de Rugy, Mercatus Center, and Beth Baltzan, American Phoenix, discuss trade and the impact tariffs are likely to have on the US & Chinese economies.
Cleveland-Cliffs’s (CLF) CFO Tim Flanagan mentioned during the Q2 2018 earnings call that the company is expected to generate $400 million of free cash flow (or FCF) in the second half of 2018. As a result, the favorable working capital release will lead the company to generate ~$400 million of FCF in the second half of the year after all expenditures, including capital expenditure on its HBI (hot-briquetted iron) plant. CLF recorded $2 million in income tax benefits in Q2 2018 related to the reversal for uncertain tax positions.
After a 25 percent tariff imposed on steel imports by U.S. President Donald Trump and his administration in March, the VanEck Vectors Steel ETF (SLX) has dropped 8 percent after reaching a high of $51.37 in February. After the March tariff on steel imports, the Trump administration expanded them on June 1 by removing temporary country exemptions for members of the European Union, Canada and Mexico. Based on data released by the American Institute for International Steel, steel imports to the United States surged 12.1 percent in April to 3.76 million net tons. Through the first four months of 2018, steel imports were up 1.2 percent year-over-year to 12.45 million net tons--a byproduct of the March tariffs, according to the American Institute for International Steel.
US steel stocks (SLX) and Cleveland-Cliffs (CLF) have been on a roller coaster ride that refuses to calm down, underpinned by Trump’s policy flip-flops, especially on trade tariffs. CLF saw a lot of ups and downs, first due to recommendations of the US Department of Commerce, then the imposition of steel tariffs, and finally the exemption of some countries from tariffs, which toned down the overall impact.
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.
Less than two months after President Donald Trump imposed steep aluminum and steel tariffs, he said Monday that the tariffs will be delayed by at least 30 days for key U.S. allies, including Canada, Mexico and the European Union. Hours before prior exemptions were set to expire, the White House announced that it would be extending its negotiations with Mexico, Canada and the EU for an additional 30 days as details of agreements that would restrain imports and protect national security are ironed out.
As we’ve seen previously in this series, Cleveland-Cliffs (CLF) has outperformed its own expectations in terms of sales volumes and realized prices for the US iron ore (or USIO) division in 1Q18. Cliffs has also reiterated its strong outlook for pricing going forward, notwithstanding the impact of Section 232 as demand outlook remains strong. The combination of higher-than-expected sales and realized prices should lead analysts to revise their revenue estimate higher.
Cleveland-Cliffs (CLF) reported first-quarter revenues of $239 million, a decline of 48% year-over-year (or YoY). This decline was largely expected due to the change in the sales recognition method by the company as well as lower carryover tons from the previous quarter. The analysts were, however, expecting lower revenues of just $181.4 million. Higher-than-expected realized prices and the earlier-than-expected start to the shipping season led to the better-than-expected top-line expectations.
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.
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.
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.
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).
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.
In FOMC meeting minutes, a staff review of the economic situation is presented to the FOMC members. In the March meeting minutes, the FOMC staff review of the economy was stronger than the review presented at the January meeting. The short-term real GDP growth expectation was revised lower due to softness in recent economic data. The medium and long-term projections for economic growth were revised higher due to the expected positive impact of the recent federal budget and tax cuts. US unemployment is expected to remain below the longer-run natural rate. ...
The VanEck Vectors Steel ETF (NYSEArca: SLX) rallied earlier this year after the White House unveiled tariffs aimed at helping U.S. steelmakers, but the steel ETF has since given back all those gains after ...
Could Toned-Down Tariffs Help Cleveland Cliffs in 2018? Steel prices are the major driver of steelmakers’ earnings and revenues. According to Platts, in 2017, US steel prices rose 17.5% on average compared to 2016.
Could Toned-Down Tariffs Help Cleveland Cliffs in 2018? The US iron ore segment contributes the majority of Cleveland-Cliffs’s (CLF) revenues and earnings. Cliffs investors track imports data, which directly impact Cliffs’s customers (SLX) such as AK Steel (AKS) and ArcelorMittal (MT).
The SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and other gold-backed exchange traded products rallied last week as investors sought safe-haven assets amid fears of trade wars ...
Shares of the VanEck Vectors Steel ETF (NYSEArca: SLX) tumbled Thursday after the White House unveiled a diluted version of its original tariff plan, which previously sparked domestic steelmakers higher. ...