Cleveland-Cliffs CLF
United StatesBasic Materials · SteelUSD
12.60 USD (+4.5%)
10 analysts
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Cleveland-Cliffs is an integrated US steel producer that mines iron ore and manufactures flat-rolled steel and steel products for the automotive, construction, energy, and appliance sectors.
Key points
from its scores- ✕Unfavourable risk and backdrop0.3
- ✕Little competitive advantage0.5
- ✕Poor share-price trend0.7
AI analysis
bottom line, main risk, context and newsExtreme leverage (14.86x EBITDA) and value destruction (ROE -13.86%) make Cleveland-Cliffs a high-risk investment, especially in a rising rate environment. There are no visible catalysts to justify taking this risk.
Cleveland-Cliffs presents a severely deteriorated financial profile: net debt of 14.86x EBITDA, operating margin of 0.34%, ROE of -13.86%, and no dividend. Valuation looks cheap (forward P/E 14.06, P/S 0.36), but it is a value trap: the business is destroying profitability and extreme leverage makes it highly vulnerable to rising interest rates. Revenue growth of 5.90% does not offset the lack of profitability and high balance sheet risk.
The main risk is extreme financial leverage (net debt 14.86x EBITDA) combined with an operating margin of only 0.34%, leaving the company with no room to maneuver in the face of tighter credit conditions or a decline in steel demand.
Context and risks
Cleveland-Cliffs is an integrated steel producer with net debt of 14.86x EBITDA, extreme leverage that acutely exposes it to rising interest rates and any stress in credit markets. Additionally, its operating margin is only 0.34%, leaving no cushion in an environment of volatile energy or raw material costs, and its return on equity is negative, a sign of a business destroying value in the current cycle.
Is Cleveland-Cliffs stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 187% above the Basic Materials median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 28.6 | 10.0 | +187% |
| Price / book | 1.2 | 2.3 | −46% |
| Price / sales | 0.4 | 2.2 | −84% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.5 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 12.60 USD, +4.5% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 0.5 (sector 5.1), Growth 5.4 (sector 6.8).
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- Forward P/E
- 14.1
- EV / EBITDA
- 28.6
- Price / book
- 1.2
- Price / sales
- 0.4
- PEG
- 0.43
- Market cap
- 6.9B USD
- Enterprise value
- 14.7B USD
Profitability
- ROE
- −13.9%
- ROA
- −1.7%
- ROIC (approx.)
- 0.5%
- Gross margin
- −1.1%
- Operating margin
- 0.3%
- Net margin
- −4.6%
- Free cash flow
- 6.1M USD
- FCF yield
- 0.1%
- Cash conversion
- 1%
Solvency
- Total debt
- 7.7B USD
- Net debt
- 7.7B USD
- Cash
- 70.0M USD
- EBITDA
- 515.0M USD
- Net debt / EBITDA
- 14.86
- Debt / equity
- 132.74
- Current ratio
- 1.89
- Quick ratio
- 0.59
Growth
- Revenue growth
- +5.9%
- EPS (TTM)
- −1.61 USD
- EPS (forward)
- 0.86 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 2.09
- Analyst consensus
- Hold (10)
- Target price
- 12.60 USD
- 52-week range
- 7.73 – 16.70
Recent news
All CLF news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about Cleveland-Cliffs
Is Cleveland-Cliffs stock cheap or expensive?
On EV / EBITDA, it trades 187% above the Basic Materials median. Valuation score: 3.5 out of 10 (median for Basic Materials: 5.8). Average analyst target: 12.60 USD, +4.5% versus the price. This is not investment advice.
What score does Cleveland-Cliffs get on MeridIAn Screener?
It scores 1.9 out of 10, rank 2,122 of 2,130 (better than 0% of the companies analysed). Its strongest category is Growth (5.4) and its weakest, Risk & Context (0.3). Analysis of 08/10/2026.
How much is Cleveland-Cliffs worth on the stock market?
Its market capitalisation is 6.9B USD and its enterprise value, debt included, is 14.7B USD.
How much debt does Cleveland-Cliffs have?
Its net debt (debt minus cash) is 7.7B USD. That is 14.86 times its EBITDA; the Basic Materials median is 1.41.
Does Cleveland-Cliffs pay a dividend?
It pays no dividend, or almost none.
How has Cleveland-Cliffs stock performed over the last year?
It has fallen 8.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 7.73 and 16.70 USD. Past performance does not guarantee future results.
What do analysts think of Cleveland-Cliffs?
10 analysts cover it; their average recommendation is “Hold” and their average target is 12.60 USD (+4.5% versus the price). It is an estimate, not market data.