Cliffs Natural Resources Inc

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CLF : NYSE : Basic Materials
$9.16 -0.07 | -0.76%
Today's Range: 9.09 - 9.56
Avg. Daily Volume: 1.43255E7
01/17/17 - 4:01 PM ET

Financial Analysis

CLIFFS NATURAL RESOURCES INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. CLIFFS NATURAL RESOURCES INC has weak liquidity. Currently, the Quick Ratio is 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 20.06% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)554.2594.1
EBITDA ($mil)82.069.1
EBIT ($mil)55.233.6
Net Income ($mil)-25.810.6

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)132.2270.2
Total Assets ($mil)1772.92271.5
Total Debt ($mil)2277.22796.7
Equity ($mil)-1544.3-1932.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin20.4115.4
EBITDA Margin14.7911.63
Operating Margin9.965.66
Sales Turnover1.041.13
Return on Assets1.95-86.91
Return on Equity0.00.0
Debt Q3 FY16 Q3 FY15
Current Ratio2.161.61
Interest Expense48.761.7
Interest Coverage1.130.54

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)230.6153.41
Div / share0.00.0
Book value / share-6.7-12.59
Institutional Own % n/a n/a
Avg Daily Volume1.4233145E71.0931731E7


HOLD. This stock's P/E ratio indicates a significant discount compared to an average of 470.61 for the Metals & Mining industry and a premium compared to the S&P 500 average of 25.49. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CLIFFS NATURAL RESOURCES INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CLF 28.88 Peers 470.61   CLF 10.06 Peers 11.61

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CLF is trading at a significant discount 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 discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CLF 21.18 Peers 27.19   CLF 1.08 Peers 1.00

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CLF is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CLF NM Peers 2.00   CLF -91.01 Peers -45.01

Neutral. 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's P/B is negative making this valuation measure meaningless.


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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CLF 1.19 Peers 3.14   CLF -28.54 Peers -10.68

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 industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CLF significantly trails its peers on the basis of sales growth



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