Cleveland-cliffs Inc Intrinsic Value – CLEVELAND-CLIFFS INC Reports Impressive Revenue and Net Income for Q2 of FY2023
July 29, 2023
☀️Earnings Overview
CLEVELAND-CLIFFS ($NYSE:CLF): For the second quarter of FY2023, Cleveland-Cliffs Inc recorded total revenue of USD 5984.0 million and net income of USD 347.0 million, ending on June 30 2023. This represented a 5.6% decrease in revenue and a staggering 41.8% drop in net income when compared to the same quarter of the previous year.
Market Price
The company’s stock opened the trading day at $16.1 and closed at $16.5, up 3.3% from the last closing price of $16.0. The company attributes its strong performance to a combination of factors, such as its efficient operations, strong demand for its products, and the new technologies that it has implemented throughout its production process. CLEVELAND-CLIFFS INC has also taken steps to ensure that it is environmentally conscious, which has helped to further boost its profits. Overall, CLEVELAND-CLIFFS INC had a successful quarter and investors are eager to see how the company will perform in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cleveland-cliffs Inc. More…
| Total Revenues | Net Income | Net Margin |
| 21.98k | 228 | 1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cleveland-cliffs Inc. More…
| Operations | Investing | Financing |
| 1.87k | -779 | -1.11k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cleveland-cliffs Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.3k | 10.26k | 14.65 |
Key Ratios Snapshot
Some of the financial key ratios for Cleveland-cliffs Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 105.3% | 65.4% | 3.1% |
| FCF Margin | ROE | ROA |
| 4.9% | 5.6% | 2.3% |
Analysis – Cleveland-cliffs Inc Intrinsic Value
At GoodWhale, we have conducted an analysis of how CLEVELAND-CLIFFS INC is faring in terms of wellbeing. We have used our proprietary Valuation Line to determine that the intrinsic value of CLEVELAND-CLIFFS INC’s share lies around $23.9. However, the stock is currently being traded at $16.5 – a difference of 30.9% which means that the share is currently undervalued. More…
Peers
Cleveland-Cliffs Inc is one of the largest steel producers in the United States. The company’s main competitors are Nucor Corp, Steel Dynamics Inc, and United States Steel Corp. All four companies are large steel producers with a significant presence in the United States market.
– Nucor Corp ($NYSE:NUE)
Nucor Corporation is an American steel producer. Nucor is the largest steel producer in the United States. The company is the largest producer of steel reinforcement bars and steel joists in North America, and is the largest “minimill” steelmaker (that is, it uses electric arc furnaces to melt scrap steel as opposed to blast furnaces to melt iron). Nucor is also North America’s largest recycler of ferrous metals.
– Steel Dynamics Inc ($NASDAQ:STLD)
With a market cap of over $17 billion, Steel Dynamics is one of the largest steel producers in the United States. The company has a long history dating back to 1993, and it is headquartered in Fort Wayne, Indiana. Steel Dynamics produces a variety of steel products including hot rolled, cold rolled, and galvanized steel, as well as a variety of steel products for the automotive, construction, and appliance industries. The company has a strong focus on quality and customer satisfaction, and it has been recognized as one of the world’s most ethical companies. Steel Dynamics has a return on equity of 50.1%, which is significantly higher than the average for the steel industry. The company’s strong financial performance is due in part to its efficient operations and its commitment to shareholder value.
– United States Steel Corp ($NYSE:X)
United States Steel Corporation is an American integrated steel producer with major production operations in the United States, Canada, and Central Europe. The company’s global presence also extends to Mexico and the Caribbean. U. S. Steel is the largest domestic steel producer and the largest of the so-called mini-mill operators.
Summary
CLEVELAND-CLIFFS INC reported total revenue of USD 5984.0 million and net income of USD 347.0 million for the second quarter of FY2023. This represented a decrease of 5.6% and 41.8% compared to the same quarter of the previous year. Despite the decrease in revenue and income, the company’s stock price moved up the same day, showing that investors are optimistic about the company’s outlook. Investors should consider the impact of the decreased revenue and income on the company’s future performance and potential growth.
Additionally, investors should monitor the company’s financials and industry trends in order to identify any potential risks that may affect the company’s stock price.
