Cleveland Stock Story

CLF -  USA Stock  

USD 20.37  0.25  1.24%

While some of us are excited about basic materials space, we will evaluate how sound are Cleveland Cliffs and Commercial Metals fundamentals. We are going to discuss some of the competitive aspects of both Cleveland and Commercial.
Published over a month ago
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Are retail investors purchasing Cleveland Cliffs (NYSE:CLF) or Commercial Metals?
By analyzing existing essential indicators between Cleveland Cliffs and Commercial, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Commercial with a short position in Cleveland Cliffs. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cleveland Cliffs has an asset utilization ratio of 608.76 percent. This indicates that the company is making $6.09 for each dollar of assets. An increasing asset utilization means that Cleveland-Cliffs is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Cleveland or AK Steel is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Cleveland Cliffs dividends

A dividend is the distribution of a portion of Cleveland Cliffs earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cleveland Cliffs dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cleveland one year expected dividend income is about $0.04 per share.
Cleveland Cliffs Dividend Yield is projected to slightly decrease based on the last few years of reporting. The past year's Dividend Yield was at 0.008.
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact34.6 M37.6 M
Payment of Dividends and Other Cash Distributions-41 M-44.2 M
Dividend Yield 0.008  0.008211 
Dividends per Basic Common Share 0.12  0.12 
Investing in stocks that pay dividends, such as stock of Cleveland-Cliffs, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Cleveland Cliffs must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cleveland Cliffs. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Cleveland Cliffs's Liquidity

Cleveland Cliffs financial leverage refers to using borrowed capital as a funding source to finance Cleveland-Cliffs ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cleveland Cliffs financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cleveland Cliffs's total debt and its cash.

Correlation Between Cleveland and AK Steel Holding

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Cleveland Cliffs together with similar or unrelated positions with a negative correlation. For example, you can also add AK Steel to your portfolio. If AK Steel is not perfectly correlated to Cleveland Cliffs it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Cleveland Cliffs for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between CLF and AKS for more information.

Note

Are you currently holding both Cleveland Cliffs and AK Steel in your portfolio?
Please note if you are using this as a pair-trade strategy between Cleveland Cliffs and AK Steel, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

An Additional Perspective On Cleveland-Cliffs

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Cleveland Cliffs revenue. Based on the latest financial disclosure, Cleveland-Cliffs reported 13 B of revenue. This is 65.42% higher than that of the Basic Materials sector and 4.01% higher than that of the Steel industry. The revenue for all United States stocks is 37.79% lower than that of the entity. As for Commercial Metals we see revenue of 6.11 B, which is 51.11% lower than that of the Steel

Cleveland13 Billion
Sector7.86 Billion
Commercial6.11 Billion
13 B
Cleveland
7.9 B
Sector
6.1 B
Commercial

Will Cleveland Cliffs latest surge continue?

Mean deviation is down to 2.33. It may indicate a possible volatility dip. Cleveland-Cliffs shows above-average downside volatility for the selected time horizon. We advise investors to inspect Cleveland-Cliffs further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Cleveland Cliffs future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cleveland Cliffs' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cleveland Cliffs' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Cleveland Cliffs

Although other companies under the steel industry are still a bit expensive, Cleveland Cliffs may offer a potential longer-term growth to shareholders. To sum up, as of the 22nd of October 2021, our analysis shows that Cleveland Cliffs responds to the market. The firm is undervalued and projects low probability of financial unrest for the next 2 years. Our latest 90 days buy-or-sell advice on the firm is Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cleveland-Cliffs. Please refer to our Terms of Use for any information regarding our disclosure principles.

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