Cleveland-Cliffs (CLF) AI Stock Analysis

• Market Cap: $5.21B
• Dividend Yield: N/A
• Average Volume (3M): 22.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: -12.14%
• EPS Growth: -4329.00%
• Country: US
• Employees: 30,000
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): -0.50
• Shares Outstanding: 494,695,280
• 10 Day Avg. Volume: 16,474,950
• 30 Day Avg. Volume: 22,979,409
• 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: 2.23
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: -11.93
• Enterprise Value/Ebitda: -14.16
• 1Y Price Target: $11.62
• Price Target Upside: 10.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 54 Neutral
• Price Target: $11.00 ▲(4.36% Upside)

Cleveland-Cliffs' overall stock score is primarily influenced by its challenging financial performance, which is offset by positive technical indicators and a strong earnings call. The company's strategic initiatives and liquidity position provide optimism, but financial difficulties and valuation concerns weigh heavily on the score.

Positive Factors

Cost Management

Cost-reduction measures were stronger than expected.

Trade Policy

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

Transformation

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.

Negative Factors

Auto Steel Demand

Auto steel demand will continue to remain weak into the end of 2025.

Debt Management

Free cash flow generation will be put toward paying down debt rather than being returned to shareholders.

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.

Cleveland-Cliffs Business Overview & Revenue Model

Company Description

Cleveland-Cliffs Inc. is a leading mining and natural resources company based in the United States, primarily engaged in the production of iron ore pellets and steelmaking materials. The company operates in the steel industry, providing essential raw materials for steel production. Cleveland-Cliffs has a diverse portfolio, which includes iron ore mining operations, as well as steel manufacturing through its various facilities, serving a wide range of customers in the automotive, construction, and manufacturing sectors.

How the Company Makes Money

Cleveland-Cliffs generates revenue primarily through the sale of iron ore pellets, which are essential for steel production. The company has a direct sales model, supplying its products to integrated steel mills and other steel producers. Key revenue streams include contracts for long-term supply agreements and spot market sales, allowing for flexibility in pricing based on market conditions. Additionally, Cleveland-Cliffs benefits from its strategic partnerships with major steel manufacturers, which provide a stable demand for its products. Factors such as global steel demand, pricing of iron ore, operational efficiency, and its ability to manage production costs significantly influence its earnings.

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: Positive
• Last Price: 10.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLF, the sentiment is Positive. The current price of 10.54 is above the 20-day moving average (MA) of 10.15, above the 50-day MA of 9.50, and above the 200-day MA of 9.48, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 61.17 is Neutral, neither overbought nor oversold. The STOCH value of 67.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLF.

Cleveland-Cliffs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUE	75 Outperform	$33.96B	27.00	6.28%	1.48%	-5.78%	-60.07%
RS	74 Outperform	$15.53B	21.49	9.93%	1.59%	-3.91%	-30.31%
STLD	74 Outperform	$19.39B	19.44	11.57%	1.46%	-5.51%	-45.07%
MT	69 Neutral	$27.60B	10.31	4.72%	1.45%	-4.51%	―
X	64 Neutral		―		―	-14.79%	-88.78%
Sector *	61 Neutral	$10.31B	6.16	0.76%	2.94%	3.30%	-36.34%
CLF	54 Neutral	$5.21B	―	-25.79%	―	-12.14%	-4329.00%

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.