Cleveland Cliffs dips -1.09

In this story I am going to address all ongoing Cleveland Cliffs shareholders. I will look into why despite ongoing dip, the longer-term fundamental drivers of the firm are still sound. In spite of rather conflicting fundamental drivers, Cleveland Cliffs exhibited solid returns over the last few months and may actually be approaching a breakup point. What is Cleveland Cliffs Target Price Odds to finish over Current Price? Pertaining to normal probability distribution, the odds of Cleveland Cliffs to move above current price in 30 days from now is about 9.14%. The Cleveland Cliffs probability density function shows the probability of Cleveland Cliffs Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, the stock has beta coefficient of 1.3105 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, Cleveland Cliffs will likely underperform. Additionally, the company has an alpha of 0.0718 implying that it can potentially generate 0.0718% excess return over S&P 500 after adjusting for the inherited market risk (beta).
Published over a year ago
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Reviewed by Gabriel Shpitalnik

Cleveland Cliffs has 2.09B in debt with debt to equity (D/E) ratio of 797.4 . This implies that the stock may be unable to create cash to meet all of its financial commitments. This firm has Current Ratio of 2.8 demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about $0.05 per share. Earning per share calculations of the firm is based on official Zacks consensus of 4 analysts regarding Cleveland Cliffs future annual earnings. Given the historical accuracy of 76.74%, the future earnings per share of the company is estimated to be 1.775 with lowest and highest values of 1.62 and 2.0 respectively. Please note that this consensus of annual earnings estimates for the entity is an estimate of EPS before non-recurring items and including employee stock options expenses.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Cleveland Cliffs income statement, its balance sheet, and the statement of cash flows. Potential Cleveland Cliffs investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Cleveland Cliffs investors may use each financial statement separately, they are all related. The changes in Cleveland Cliffs's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cleveland Cliffs's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Cleveland Cliffs fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Cleveland Cliffs performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Cleveland Cliffs shares is the value that is considered the true value of the share. If the intrinsic value of Cleveland is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Cleveland Cliffs. Please read more on our fundamental analysis page.

How effective is Cleveland Cliffs in utilizing its assets?

Cleveland Cliffs reports assets on its Balance Sheet. It represents the amount of Cleveland resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Cleveland Cliffs aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Metals & Mining space. To get a better handle on how balance sheet or income statements item affect Cleveland volatility, please check the breakdown of all its fundamentals.

Are Cleveland Cliffs Earnings Expected to grow?

The future earnings power of Cleveland Cliffs involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Cleveland Cliffs factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Cleveland Cliffs stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Cleveland expected earnings.

Cleveland Cliffs Gross Profit

Cleveland Cliffs Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cleveland Cliffs previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cleveland Cliffs Gross Profit growth over the last 10 years. Please check Cleveland Cliffs' gross profit and other fundamental indicators for more details.

An Additional Perspective On Cleveland-Cliffs

The company has beta of 2.71. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Cleveland Cliffs will likely underperform. The latest bullish price patterns experienced by current Cleveland Cliffs shareholders could raise concerns from investors as the firm closed today at a share price of 10.79 on 7827852.000 in volume. The company executives have been very successful with rebalancing the firm components at opportune times to take advantage of market volatility in June. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.2711. The current volatility is consistent with the ongoing market swings in June 2019 as well as with Cleveland Cliffs unsystematic, company specific events. Cleveland Cliffs defends 51.54% profit margin. Cleveland Cliffs is selling for under 10.87. That is 1.09 percent down. Today lowest is 10.79. Cleveland Cliffs Return on Investment is increasing over the last 5 years. The ongoing value of Cleveland Cliffs Return on Investment is 16.79. Also, Cleveland Cliffs Return on Average Equity is rather stable at the moment.
 2008 2009 2018 (projected)
Cleveland Cliffs Interest Expense 118,900,000  6,500,000  7,475,000 
Cleveland Cliffs Gross Profit 809,600,000  116,700,000  134,205,000 
All in all, we believe that at this point Cleveland Cliffs is slightly risky with below average probability of financial unrest within the next 2 years. Our present buy-hold-sell recommendation on the firm is Strong Hold.

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Editorial Staff

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