Cleveland-Cliffs Inc Receives Mixed Ratings from Analysts

Cleveland-Cliffs Inc (CLF) has a 43% rating under the Value Investor model. This mixed rating stems from its strong sales but fails across critical areas such as EPS growth and valuation metrics. Investors may want to weigh this analysis before considering stock performance.

Date: 13-03-2025

AI Rating: 5

Analysis of Cleveland-Cliffs Inc (CLF)

Cleveland-Cliffs Inc has received a rating of 43% based on a comprehensive evaluation using the Value Investor model inspired by Benjamin Graham. Notably, the company manages to pass certain criteria like sector stability, sales performance, and current ratio, which points to a respectable operational status.

However, several critical areas show significant weaknesses. The company's performance on Long-Term EPS Growth is rated as a failure, indicating challenges in consistently growing its earnings per share over time. This could lead to skepticism regarding its profit potential in the future. Additionally, the company has also failed in terms of its P/E Ratio and Price/Book Ratio. These metrics are crucial for valuation and indicate that investors might be paying too much relative to the company's earnings and book value.

Furthermore, the Long-Term Debt in Relation to Net Current Assets shows a failure as well, which raises concerns regarding the company's financial leverage and risk. This balance sheet challenge is something investors should seriously consider, as high debt levels relative to current assets can lead to financial strain.

Overall, while Cleveland-Cliffs Inc presents some positives through its sales and sector generalities, the company exhibits red flags that investors must be cautious of before making investment decisions. The low rating under the growth and valuation metrics implies potential risks in stock performance.

Stocks: CLF