| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | — | 17.3x | Bottom tier | |
Growth | 52 | 7.8% | 7.1% | Around median | |
Quality | 17 | -0.2% | 4.5% | Bottom tier | |
Safety | 42 | 10.2x | 2.6x | Around median | |
Capital Return | 27 | 0.00% | 0.06% | Bottom tier | |
Momentum | 75 | -10.5% | -1.6% | Top tier | |
Sentiment | 92 | 6 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Cleveland-Cliffs operates as a vertically integrated company in the North American steel industry, combining mining, pellet production, iron and steelmaking, and downstream manufacturing. Its business is driven by supplying steel to the U.S. automotive sector, which represents approximately half of its flat-rolled carbon steel business, alongside plate products for shipbuilding, grain-oriented electrical steel for power grids, stainless steel, and hot-rolled coils in Canada through Stelco.
In Q2 FY2026, revenue was $5.2 billion and gross profit was $132 million, equivalent to a gross margin of approximately 2.5%, while the company recorded a net loss of $145 million and a loss per share of $0.25. These results improved compared with Q1 FY2026, when revenue was $4.9 billion, gross loss was $82 million, and net loss was $237 million. The company also generated adjusted earnings before interest, taxes, depreciation, and amortization of $286 million, its best result in two years and three times the prior quarter’s level, according to management.
Despite the sequential improvement, the annual picture remains weak; Cleveland-Cliffs recorded FY2025 revenue of $18.6 billion, a gross loss of $860 million, and a net loss of $1.5 billion. The latest trailing twelve-month data show revenue of $19.2 billion, compared with a gross loss of $202 million and a net loss of $879 million, meaning the operating recovery has not yet translated into sustainable net profitability.
The analyst consensus on CLF stock is Neutral, with an average target of $11.43 and a range of $9 to $15.6; the highest target is below the 52-week range high of $16.7, while the lowest target is above the range low of $7.73. A positive price-to-earnings ratio is not available because of the losses, so the valuation depends heavily on achieving the guided earnings surge in Q3 FY2026 and sustaining improvements in prices and costs, weighed against a record of $879 million in losses over the latest twelve months.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Management expects adjusted earnings before interest, taxes, depreciation, and amortization of approximately $575 million, compared with $286 million in Q2 FY2026. It is targeting shipments of more than 4.3 million tons, with the average selling price rising by $55 per ton and unit cost declining by $10 per ton. These expectations are based on a strong order book, an extended backlog, and the end of maintenance outages and weather-related effects.
The automotive sector represents approximately half of Cleveland-Cliffs’ flat-rolled carbon steel business. In Q2 FY2026, shipments to automotive customers reached their highest level in two years, and management estimated that approximately 150 thousand tons of the following quarter’s 300 thousand-ton shipment increase would come from this sector. During FY2026, the company also received supplier awards from General Motors and Toyota, and automotive steel coating volumes returned to levels comparable to 2023.
Automated analysis for informational purposes only — not investment advice.
Management expects repricing a large portion of fixed-price contracts to add approximately $500 million to earnings before interest, taxes, depreciation, and amortization on an annual basis. Negotiations for non-automotive contracts began in the second half of FY2026 and were expected to be completed by November or early December 2026. Management said that the pricing backdrop had shifted from approximately $800 during the previous year’s negotiations to around $1,150 at the time of the July 23, 2026 call, but realizing the benefit remains contingent on negotiation outcomes and actual prices.
Cleveland-Cliffs announced a total investment of $1 billion in Middletown Works on August 21, 2026. The U.S. Department of Energy will provide a $500 million grant, equal to half of the total cost, reducing the direct funding required from the company. The project aims to increase facility efficiency, improve the blast furnace before its relining due by 2030, and use furnace gas to generate electricity on-site.
Management has made debt reduction its top capital allocation priority until it reaches a leverage target below 2.5 times. The company expects to collect most of the $400 million in real estate sale proceeds during the second half of FY2026, alongside cash flows generated by improved earnings. There are no debt maturities until 2029, but achieving the leverage target during the twelve months following the July 23, 2026 call depends on delivering the earnings outlook and converting it into cash flows.