With Cleveland-Cliffs’ results just around the corner, it is to be seen how the management has progressed with their execution in terms of profitability and their attempts towards free cash-flow-driven reduction in debt. The last quarter had been a mixed one for the company as it surpassed Wall Street expectations in terms of revenues given that the selling prices and volumes were both up. However, higher costs and inflation led to a drop in margins and it had missed out on earnings. The gross inventory values in terms of the working capital increased in the last quarter because of higher costs, and the overall steel inventory volumes decreased. Some inflationary pressures like alloys, scrap, electricity, and natural gas spiked during the last quarter. It is worth highlighting that nearly one-fourth of its sales have been going into manufacturing and infrastructure. The steel selling prices have been dropping which is why it is to be seen how the company can cope with the same. We provide the stock of Cleveland-Cliffs with a ‘Hold’ rating with a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
Want unlimited access to our reports? Purchase our $99 annual subscription!