ClevelandCliffs, headquartered in Cleveland, Ohio, is a flat-rolled steel company employing 28,000, supplying iron ore pellets and various steel products to the North American steel industry. The firm serves markets including automotive, infrastructure, manufacturing, and steel producers.
Based on our analysis, ClevelandCliffs appears to be undervalued, earning a rating of 4 out of 5 stars from Cashu. Several key financial ratios illustrate this potential.
Firstly, the Price-to-Book (PB) ratio for ClevelandCliffs stands at 0.70, significantly lower than the sector average of 1.56. A PB ratio under 1 may indicate that the stock is trading for less than its book value, suggesting a potential opportunity for investors if the company's assets are accurately valued.
Secondly, the Net Profit Margin for ClevelandCliffs is reported at -3.93, vastly improved compared to the sector's average of -319.36. This metric reflects how much profit a company makes for every dollar of revenue. Despite being negative, ClevelandCliffs is managing its losses more effectively than its competitors, indicating better operational efficiency.
The Return on Equity (ROE) ratio for ClevelandCliffs is -11.31, which, while negative, is again an improvement over the sector average of -21.38. ROE measures the company's ability to generate profit from shareholders' equity. A less negative figure suggests that ClevelandCliffs is working towards better utilization of equity compared to its industry peers.
Finally, the Return on Assets (ROA) ratio stands at -3.60, compared to the sector's -18.30. This ratio indicates how effectively a company is using its assets to generate earnings. ClevelandCliffs' less severe negative performance shows a more efficient use of assets than the industry average.
These metrics indicate that ClevelandCliffs is positioned to recover and potentially outperform its peers, reflecting its undervalued status.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Materials
More Signals
Feature in Progress
This section is under development. Check back soon for updates!