Cleveland-Cliffs (CLF) AI Stock Analysis

• Market Cap: $4.77B
• Dividend Yield: N/A
• Average Volume (3M): 28.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -12.14%
• EPS Growth: -4329.00%
• Country: US
• Employees: 30,000
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Steel
• EPS (TTM): -0.50
• Shares Outstanding: 494,695,280
• 10 Day Avg. Volume: 28,537,091
• 30 Day Avg. Volume: 28,897,543
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.44
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: -11.93
• Enterprise Value/Ebitda: -14.16
• 1Y Price Target: $10.91
• Price Target Upside: 13.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 57 Neutral
• Price Target: $10.50 ▲(8.81% Upside)

Cleveland-Cliffs' overall score is heavily influenced by its financial struggles, with negative profitability and cash flow issues being significant detractors. However, the positive earnings call with improvements in EBITDA and strategic investments provides a promising outlook, offering some balance to the financial challenges.

Positive Factors

Acquisitions

Cleveland-Cliffs has transformed itself from an iron ore miner to the largest integrated steelmaker in North America through the acquisition of two of its largest customers, AK Steel and ArcelorMittal USA.

Cost Management

Cost-reduction measures were stronger than expected, contributing positively to the company's financial performance.

Trade Policy

Potential changes in Canadian steel trade policy could boost earnings for Cleveland-Cliffs.

Negative Factors

Debt and Leverage

An increase in leverage following the completion of the Stelco acquisition justifies a below historical average multiple, despite being partially offset by the company's cost cutting.

Free Cash Flow

Free cash flow is still below the breakeven point despite improvements, indicating ongoing financial challenges.

Pricing and Demand Risks

A major hit to pricing and/or demand from major tariff exceptions and/or geopolitical uncertainty would inhibit CLF’s future cash generation.

Cleveland-Cliffs Business Overview & Revenue Model

Company Description

Cleveland-Cliffs Inc. is a leading vertically integrated steel producer in North America, primarily engaged in the production of flat-rolled steel products. The company operates through its Steel and Manufacturing segments, offering a comprehensive range of steel products and services to automotive, infrastructure, and manufacturing industries. With operations in mining, pelletizing, and steelmaking, Cleveland-Cliffs is well-positioned to serve its diverse customer base with high-quality, sustainable steel solutions.

How the Company Makes Money

Cleveland-Cliffs makes money by producing and selling steel products, primarily flat-rolled steel, which is used extensively in the automotive, infrastructure, and manufacturing sectors. The company operates through a vertically integrated business model, from mining iron ore to producing and distributing steel products. Key revenue streams include the sale of steel coils, sheets, and plates. Additionally, Cleveland-Cliffs generates income from its mining operations, supplying iron ore pellets to its own steel plants and external customers. The company's significant partnerships with automotive manufacturers and other industrial clients also play a crucial role in its earnings, ensuring steady demand for its steel products.

Cleveland-Cliffs Financial Statement Overview

Summary

Cleveland-Cliffs is facing significant financial challenges with negative gross profit, net income, and cash flow issues. The balance sheet is stressed with moderate debt, decreasing equity, and high leverage, which is risky given the declining profitability and operational inefficiencies.

Income Statement

Cleveland-Cliffs has faced significant challenges in recent years. The TTM shows negative gross profit and net income, indicating profitability issues. Revenue has decreased from the prior year, and margins such as EBIT and EBITDA have turned negative. The steel industry is cyclically affected, but the current trajectory reflects operational inefficiencies and market pressures.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which is concerning given the financial performance. Equity has decreased over the periods, impacting the equity ratio negatively. The company's high leverage poses risks, especially with declining profitability, though the debt levels are not excessively high for the industry.

Cash Flow

Cash flow metrics reveal deterioration, with negative free cash flow in the TTM period. Operating cash flow to net income ratio is negative, highlighting substantial operational cash outflows. The company's ability to generate cash from operations has been severely impacted, suggesting liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.18B	22.00B	22.99B	20.44B	5.35B
Gross Profit	70.00M	1.39B	2.52B	4.53B	252.00M
EBITDA	378.00M	1.86B	3.11B	5.04B	353.00M
Net Income	-754.00M	399.00M	1.33B	2.99B	-122.00M
Balance Sheet
Total Assets	20.95B	17.54B	18.75B	18.98B	16.77B
Cash, Cash Equivalents and Short-Term Investments	54.00M	198.00M	26.00M	48.00M	112.00M
Total Debt	7.07B	3.14B	4.25B	5.24B	5.99B
Total Liabilities	14.05B	9.41B	10.71B	13.20B	14.43B
Stockholders Equity	6.66B	7.89B	7.79B	5.49B	2.76B
Cash Flow
Free Cash Flow	-590.00M	1.62B	1.48B	2.08B	-786.00M
Operating Cash Flow	105.00M	2.27B	2.42B	2.79B	-261.00M
Investing Cash Flow	-3.21B	-591.00M	-936.00M	-1.38B	-2.04B
Financing Cash Flow	2.97B	-1.50B	-1.51B	-1.47B	2.06B

Cleveland-Cliffs Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLF, the sentiment is Neutral. The current price of 9.65 is below the 20-day moving average (MA) of 10.16, above the 50-day MA of 8.48, and below the 200-day MA of 9.73, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 5.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLF.

Cleveland-Cliffs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RS	71 Outperform	$15.14B	21.01	9.93%	1.60%	-3.91%	-30.31%
STLD	70 Outperform	$18.34B	18.01	11.57%	1.57%	-5.51%	-45.07%
NUE	69 Neutral	$32.18B	25.17	6.29%	1.58%	-5.78%	-59.98%
X	64 Neutral	$12.42B	186.15	0.86%	0.36%	-14.79%	-88.78%
MT	59 Neutral	$25.52B	9.44	4.72%	1.56%	-4.36%	―
CLF	57 Neutral	$4.77B	―	-25.79%	―	-12.14%	-4329.00%
Sector *	44 Neutral	AU$1.46B	-5.90	-41.17%	4.22%	-3.35%	-41.14%

Cleveland-Cliffs Corporate Events

Cleveland-Cliffs Shareholders Approve Directors and Compensation

On May 15, 2025, Cleveland-Cliffs Inc. held its Annual Meeting of Shareholders, where all nominated directors were elected for a term expiring in 2026. The shareholders also approved the executive officers’ compensation with over 90% affirmative votes and ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025, reflecting strong shareholder support for the company’s governance and financial oversight.

The most recent analyst rating on (CLF) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Cleveland-Cliffs stock, see the CLF Stock Forecast page.