Unveiling 9 Analyst Insights On Cleveland-Cliffs

Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on Cleveland-Cliffs CLF in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $19.5, a high estimate of $27.20, and a low estimate of $10.13. This current average has decreased by 6.52% from the previous average price target of $20.86.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Cleveland-Cliffs is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Cleveland-Cliffs. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Cleveland-Cliffs compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Cleveland-Cliffs's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Cleveland-Cliffs's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Cleveland-Cliffs analyst ratings.

Delving into Cleveland-Cliffs's Background

Cleveland-Cliffs Inc is a flat-rolled steel producer and manufacturer of iron ore pellets in North America. It is organized into four operating segments based on differentiated products, Steelmaking, Tubular, Tooling and Stamping and European Operations, but operates through one reportable segment -Steelmaking. It is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. It serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Geographically, it operates in the United States, Canada and other countries. The majority of revenue is from the United States. It is a supplier of steel to the automotive industry in North America.

Cleveland-Cliffs's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Cleveland-Cliffs faced challenges, resulting in a decline of approximately -1.81% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Net Margin: Cleveland-Cliffs's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -1.29%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Cleveland-Cliffs's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.89%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Cleveland-Cliffs's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.39%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Cleveland-Cliffs's debt-to-equity ratio stands notably higher than the industry average, reaching 0.51. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Core of Analyst Ratings: What Every Investor Should Know

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.