Cleveland-Cliffs (CLF) AI Stock Analysis

• Market Cap: $5.88B
• Dividend Yield: N/A
• Average Volume (3M): 17.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -12.14%
• EPS Growth: -4329.00%
• Country: US
• Employees: 30,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.50
• Shares Outstanding: 494,695,280
• 10 Day Avg. Volume: 17,285,858
• 30 Day Avg. Volume: 17,191,273
• PEG Ratio: 0.02
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -7.65
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: -11.93
• Enterprise Value/Ebitda: -14.16
• 1Y Price Target: $11.94
• Price Target Upside: 0.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 52 Neutral
• Price Target: $11.50 ▼(-3.28% Downside)

Cleveland-Cliffs' overall stock score is primarily impacted by its weak financial performance, with significant challenges in profitability and cash flow. However, the stock's positive technical momentum and strategic financial moves, such as the issuance of senior notes, provide some optimism. The valuation remains unattractive due to negative earnings, but the company's efforts to improve operational efficiency and liquidity are noteworthy.

Positive Factors

Cost Reduction Achievements

Achieving cost reductions enhances profitability and competitiveness, providing a buffer against market volatility and improving margins.

Strong Liquidity Position

A strong liquidity position ensures operational flexibility and the ability to invest in growth opportunities without immediate financial pressure.

Strategic Investments in Stainless Steel

Investments in production capabilities can enhance product quality and efficiency, supporting long-term growth and market competitiveness.

Negative Factors

Negative Profitability

Sustained negative profitability can hinder reinvestment in the business and affect long-term viability, requiring strategic adjustments.

Rising Debt Levels

Increased leverage can limit financial flexibility and pose risks if market conditions worsen, impacting future growth potential.

Cash Flow Challenges

Negative cash flow indicates operational inefficiencies and liquidity challenges, potentially affecting the company's ability to fund operations.

Cleveland-Cliffs Business Overview & Revenue Model

Company Description

Cleveland-Cliffs Inc. operates as a flat-rolled steel producer in North America. The company offers carbon steel products, such as hot-rolled, cold-rolled, electrogalvanized, hot-dip galvanized, hot-dip galvannealed, aluminized, enameling, and advanced high-strength steel products; stainless steel products; plates; and grain oriented and non-oriented electrical steel products. It also provides tubular components, including carbon steel, stainless steel, and electric resistance welded tubing. In addition, the company offers tinplate products, such as electrolytic tin coated and chrome coated sheet, and tin mill products; tooling and sampling; raw materials; ingots, rolled blooms, and cast blooms; and hot-briquetted iron products. Further, it owns five iron ore mines in Minnesota and Michigan. The company serves automotive, infrastructure and manufacturing, distributors and converters, and steel producers. Cleveland-Cliffs Inc. was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. The company was founded in 1847 and is headquartered in Cleveland, Ohio.

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 substantial financial difficulties, with negative profitability and cash flow challenges. The income statement shows negative gross profit and net income, while the balance sheet indicates a moderate debt-to-equity ratio, raising concerns about leverage. Cash flow metrics reveal negative free cash flow, highlighting liquidity issues.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.46B	19.18B	22.00B	22.99B	20.44B	5.35B
Gross Profit	-977.00M	70.00M	1.39B	2.52B	4.53B	252.00M
EBITDA	-823.00M	378.00M	1.86B	3.11B	5.04B	353.00M
Net Income	-1.67B	-754.00M	399.00M	1.33B	2.99B	-122.00M
Balance Sheet
Total Assets	20.47B	20.95B	17.54B	18.75B	18.98B	16.77B
Cash, Cash Equivalents and Short-Term Investments	61.00M	54.00M	198.00M	26.00M	48.00M	112.00M
Total Debt	7.73B	7.07B	3.14B	4.25B	5.24B	5.99B
Total Liabilities	14.43B	14.05B	9.41B	10.71B	13.20B	14.43B
Stockholders Equity	6.04B	6.66B	7.89B	7.79B	5.49B	2.76B
Cash Flow
Free Cash Flow	-1.48B	-590.00M	1.62B	1.48B	2.08B	-786.00M
Operating Cash Flow	-862.00M	105.00M	2.27B	2.42B	2.79B	-261.00M
Investing Cash Flow	-3.14B	-3.21B	-591.00M	-936.00M	-1.38B	-2.04B
Financing Cash Flow	3.96B	2.97B	-1.50B	-1.51B	-1.47B	2.06B

Cleveland-Cliffs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 11.89 is above the 20-day moving average (MA) of 10.89, above the 50-day MA of 10.40, and above the 200-day MA of 9.43, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 83.85 is Negative, 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	32.50B	25.56	9.99%	1.55%	-5.78%	-60.07%
STLD	74 Outperform	19.37B	19.20	11.74%	1.46%	-5.51%	-45.07%
CMC	72 Outperform	6.54B	188.37	0.90%	1.23%	-5.64%	-93.26%
GGB	71 Outperform	6.10B	11.09	5.95%	3.44%	-6.55%	-37.93%
MT	63 Neutral	28.60B	10.65	4.59%	1.38%	-4.51%	0.00%
CLF	52 Neutral	$5.88B	―	-25.79%	―	-12.14%	-4329.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Cleveland-Cliffs Corporate Events

Cleveland-Cliffs Issues $850M Senior Notes in Private Deal

On September 8, 2025, Cleveland-Cliffs Inc. issued $850 million in 7.625% Senior Guaranteed Notes due 2034 in a private transaction, exempt from registration under the Securities Act of 1933. The proceeds from these Notes will be used to redeem existing senior notes due in 2027 and repay borrowings under its credit facility, potentially strengthening the company’s financial position and impacting its debt structure.

Cleveland-Cliffs Launches $850M Senior Notes Offering

On September 3, 2025, Cleveland-Cliffs Inc. announced the launch and pricing of a private offering of $850 million in Senior Guaranteed Notes due 2034, with an interest rate of 7.625%. The company also issued notices to redeem its outstanding 2027 Notes, totaling $685 million, with the redemptions contingent on the successful closing of the new Notes offering. This strategic financial maneuver aims to manage the company’s debt profile and potentially improve its financial flexibility, impacting its operations and positioning within the competitive steel industry.