Cleveland-Cliffs Inc. [CLF] is following upward trend in the market concluded with the last trading session. The shares of the Basic Materials sector company has a current value of $9.83 after CLF shares went up by 2.29% during the last trading session. One of the reasons why Basic Materials stocks may go bullish is increased momentum in the press.
Cleveland-Cliffs Inc. [NYSE:CLF]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Cleveland-Cliffs Inc. [CLF], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give CLF an Outperform rating. Its stock price has been found in the range of 7.40 to 13.10. This is compared to its latest closing price of $9.61.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Cleveland-Cliffs Inc. [CLF] is sitting at 2.10. This is compared to 1 month ago, when its average rating was 2.18.
For the quarter ending in Mar-19 Cleveland-Cliffs Inc. [CLF] generated $0.16 billion in sales. That’s 31.71% higher than the average estimate of $0.12 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Fri 19 Jul (In 35 Days).
Fundamental Analysis of Cleveland-Cliffs Inc. [CLF]
Now let’s turn to look at profitability: with a current Operating Margin for Cleveland-Cliffs Inc. [CLF] sitting at +14.24 and its Gross Margin at +20.35, this company’s Net Margin is now 51.50%. These measurements indicate that Cleveland-Cliffs Inc. [CLF] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 12.17, and its Return on Invested Capital has reached 45.40%. Its Return on Assets is 29.27.
Turning to investigate this organization’s capital structure, Cleveland-Cliffs Inc. [CLF] has generated a Total Debt to Total Equity ratio of 503.80. Similarly, its Total Debt to Total Capital is 83.44, while its Total Debt to Total Assets stands at 51.47. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 503.80, and its Long-Term Debt to Total Capital is 83.44. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 10.90 and its Total Debt to EBITDA Value is 5.92. The Enterprise Value to Sales for this firm is now 1.76, and its Total Debt to Enterprise Value stands at 0.60. Cleveland-Cliffs Inc. [CLF] has a Price to Book Ratio of 5.30, a Price to Cash Flow Ratio of 4.89 and P/E Ratio of 2.54. These metrics all suggest that Cleveland-Cliffs Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Cleveland-Cliffs Inc. [CLF] earns $652,700 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.12 and its Total Asset Turnover is 0.54. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.77 and its Current Ratio is 3.16. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Cleveland-Cliffs Inc. [CLF] has 290.52M shares outstanding, amounting to a total market cap of $2.86B. Its stock price has been found in the range of 7.40 to 13.10. At its current price, it has moved down by -24.96% from its 52-week high, and it has moved up 32.84% from its 52-week low.
This stock’s Beta value is currently 1.85, which indicates that it is 3.25% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.94. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Cleveland-Cliffs Inc. [CLF] a Reliable Buy?
Shares of Cleveland-Cliffs Inc. [CLF], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.