CLEVELAND-CLIFFS INC. ● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.72 for the 2021 fiscal year.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Weaknesses
● The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
● The company is not the most generous with respect to shareholders' compensation.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
● The company's earnings releases usually do not meet expectations.
