Orin
CLFNYSE·Steel

Cleveland-Cliffs Inc. CLF

Market cap $7.3BP/E no earnings to divide byGross margin -0.6%Reports Mon 19 Oct, before the open
$12.75
−0.12 (−0.93%)live 09:30 ET
52-wk $7.73 – $16.70
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Orin's take
0.60conviction · moderate
Refreshed 30 Aug · take v3. A new filing or a print queues the next refresh.

Cleveland-Cliffs posted a deeply unprofitable FY2025 with negative gross profit of -$763M, operating loss of -$1.356B, and FCF of -$1.023B, while total debt ballooned to $8.17B from $3.59B in FY2023 — yet recent news signals a Q2 2026 sequential inflection (EBITDA tripled, FCF turned positive) aided by escalating U.S.-Canada tariff tensions, a new $522.77M BlackRock position, and $500M in DOE support for the Middletown Works. The stock at $11.62 trades above both its 50-day ($10.94) and 200-day ($11.38) moving averages, but its EV/EBITDA of 22.93 sits roughly 140% above the peer median of 9.56, pricing in the leverage overhang.

The turnaround is credible but unproven on a sustained-profitability basis, and the CFO's June 2026 sale of 214,308 shares at $13.41 — above the current price — tempers confidence in the recovery's durability.

What could go wrong

  • Leverage overhang. Total debt reached $8.17B in FY2025 against stockholders' equity of $6.12B, up from $3.59B in debt in FY2023, making the balance sheet fragile if steel prices falter.
  • Margin collapse. Gross margin deteriorated from 22.2% in FY2021 to -4.1% in FY2025, and the company has not demonstrated a full year of gross profitability since FY2023.
  • Tariff reversal. Recent stock strength is partly tied to U.S.-Canada trade tensions; any de-escalation or tariff rollback could remove the pricing tailwind for domestic steel.
  • Insider selling. The EVP and CFO sold 214,308 shares at $13.41 in June 2026, a price above the current $11.62 close, signaling limited executive conviction in near-term upside.

What would change my mind

Sustained gross profitability. CLF reports two consecutive quarters of positive gross profit and operating cash flow, confirming the Q2 2026 sequential improvement is durable.bullish
Debt reduction. Total debt declines meaningfully from the $8.17B FY2025 level through deleveraging or refinancing, narrowing the EV/EBITDA gap versus peers.bullish
Tariff rollback. A U.S.-Canada trade resolution or tariff reduction removes the domestic steel pricing premium, pressuring CLF's revenue and margins.bearish
Q3 2026 guidance miss. CLF fails to deliver on the doubled Q3 guidance cited in recent coverage, or FCF reverts to negative territory, undermining the turnaround narrative.bearish

Where this comes from: FMP FY2025 annual · FMP FY2023 and FY2025 annual · derived_metrics FY2021 and FY2025 · peer_relative. Orin's read on CLF; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
State Street$312.2M0.0% of fund
Vanguard Capital Management$242.2M0.0% of fund
Vanguard Portfolio Management$236.5M0.0% of fund
D. E. Shaw &$144.5M0.1% of fund
Two Sigma Investments$142.7M0.1% of fund
Geode Capital Management$99.0M0.0% of fund

82 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 89 Form 4 filings, net −$45.4M. Of the 50 on hand, 1 was an open-market purchase and 4 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

· Basic Materials
MetricNowOwn medianSector
EV/EBITDA24.1×
P/S0.38×
P/B1.3×

What Wall Street published

44 firms · 2026-09-23
Consensus target

$12

$9$17 · −6% against today's price

How they rate it
  • 10 buy or overweight
  • 23 hold
  • 11 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 14.7× of 2 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
CLFCleveland-Cliffs Inc.$7B24.1×-0.6%-4.6%-15%
CMCCommercial Metals Company$7B12.1×8.7×18.6%6.7%14%
EMNEastman Chemical Company$8B17.3×9.6×19.9%5.0%7%

The median is of the 2 peers listed above and nothing else — check it against the column. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY16 9.6×FY23 26.2×

What its sector has traded at

Basic Materials
FY14 23.8×FY26 28.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $12.75
52-week range$8 – $17
Analyst targets$9 – $17

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.