Evaluating Cleveland-Cliffs: Insights From 8 Financial Analysts

During the last three months, 8 analysts shared their evaluations of Cleveland-Cliffs CLF, revealing diverse outlooks from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $21.71, with a high estimate of $27.20 and a low estimate of $16.50. A 2.43% drop is evident in the current average compared to the previous average price target of $22.25.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Cleveland-Cliffs. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cleveland-Cliffs. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cleveland-Cliffs compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Cleveland-Cliffs's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Cleveland-Cliffs's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Cleveland-Cliffs analyst ratings.

Get to Know Cleveland-Cliffs Better

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: Financial Performance Dissected

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Challenges: Cleveland-Cliffs's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -1.81%. This indicates a decrease in top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Cleveland-Cliffs's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -1.29%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Cleveland-Cliffs's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.89%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Cleveland-Cliffs's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.39%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.51, Cleveland-Cliffs faces challenges in effectively managing its debt levels, indicating potential financial strain.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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