Cleveland-Cliffs Inc.
Find Ratings ReportsCLEVELAND-CLIFFS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. CLEVELAND-CLIFFS INC has weak liquidity. Currently, the Quick Ratio is 0.58 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.23% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 5112.0 | 5044.0 |
EBITDA ($mil) | 242.0 | 71.0 |
EBIT ($mil) | 6.0 | -176.0 |
Net Income ($mil) | -155.0 | -214.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 198.0 | 26.0 |
Total Assets ($mil) | 17537.0 | 18755.0 |
Total Debt ($mil) | 3590.0 | 4702.0 |
Equity ($mil) | 7887.0 | 7791.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 7.9 | 3.71 |
EBITDA Margin | 4.73 | 1.4 |
Operating Margin | 0.12 | -3.49 |
Sales Turnover | 1.25 | 1.23 |
Return on Assets | 2.27 | 7.11 |
Return on Equity | 5.05 | 17.1 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.89 | 2.09 |
Debt/Capital | 0.31 | 0.38 |
Interest Expense | 67.0 | 73.0 |
Interest Coverage | 0.09 | -2.41 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 504.89 | 513.34 |
Div / share | 0.0 | 0.0 |
EPS | -0.31 | -0.41 |
Book value / share | 15.62 | 15.18 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 9648380.0 | 9323691.0 |
HOLD. CLEVELAND-CLIFFS INC's P/E ratio indicates a significant premium compared to an average of 15.23 for the Primary Metal Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.26 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.56. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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CLF 25.53 | Peers 15.23 | CLF 4.38 | Peers 9.34 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. CLF is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CLF is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CLF 9.93 | Peers 11.93 | CLF 0.41 | Peers 0.43 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. CLF is trading at a significant premium to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CLF trades at a valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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CLF 1.26 | Peers 1.56 | CLF -69.33 | Peers 0.85 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CLF is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CLF is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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CLF 0.45 | Peers 0.92 | CLF -4.32 | Peers -2.96 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CLF is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CLF significantly trails its peers on the basis of sales growth. |
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