Cliffs Natural Resources Inc

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CLF : NYSE : Basic Materials
$6.75 up 0.11 | 1.7%
Today's Range: 6.725 - 7.11
Avg. Daily Volume: 1.52966E7
06/27/17 - 1:56 PM ET

Financial Analysis


CLIFFS NATURAL RESOURCES INC's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. CLIFFS NATURAL RESOURCES INC has average liquidity. Currently, the Quick Ratio is 1.31 which shows that technically this company has the 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 greatly increased by 55.35% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)461.6308.2
EBITDA ($mil)93.240.6
EBIT ($mil)70.05.4
Net Income ($mil)-28.1108.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)295.359.9
Total Assets ($mil)1925.71886.3
Total Debt ($mil)1697.02589.8
Equity ($mil)-830.1-1859.4


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin25.7622.32
EBITDA Margin20.1913.17
Operating Margin15.161.75
Sales Turnover1.181.0
Return on Assets1.976.28
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio2.631.8
Debt/Capital1.963.55
Interest Expense42.856.8
Interest Coverage1.640.1


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)296.4181.91
Div / share0.00.0
EPS-0.110.61
Book value / share-2.8-10.22
Institutional Own % n/a n/a
Avg Daily Volume1.5124515E71.931524E7

Valuation


SELL. This stock's P/E ratio indicates a discount compared to an average of 31.47 for the Metals & Mining industry and a discount compared to the S&P 500 average of 25.75. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CLF 23.11 Peers 31.47   CLF 3.27 Peers 10.56

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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CLF 9.75 Peers 19.33   CLF 22.44 Peers 1.05

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CLF NM Peers 1.63   CLF -3.58 Peers 236.04

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CLF 0.81 Peers 2.69   CLF 20.85 Peers 7.20

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CLF has a sales growth rate that significantly exceeds its peers.

 

 

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