Cleveland-Cliffs stock down 50% due to steel price drop and weak demand

From Nasdaq: 2024-12-22 21:49:22

Cleveland-Cliffs (NYSE: CLF) stock has dropped 50% this year, sharper than peers like VALE, ArcelorMittal, United States Steel, and Nucor Corp. Steel prices in the U.S. are down due to weak demand, impacting CLF more due to its automotive sector exposure. Revenue has declined, but potential upside exists in stock valuation.

CLF stock returns have been volatile, with a 4% revenue drop in 2023. PS multiple has decreased, but historical comparison shows potential upside. CLF underperformed in 2022 but expects a rebound in 2025, acquiring Stelco Holdings for expansion. The company aims for increased EBITDA and improved margins.

Third-quarter 2024 saw CLF’s net loss of $0.52 per diluted share, with lower revenues and discrete charges. Expectations for 2025 include EBITDA growth, steel demand rebound, and margin improvements post Stelco acquisition. Historical returns show CLF underperforming, but potential for recovery exists.



Read more at Nasdaq: Why is Cleveland-Cliffs Stock Down 50% This Year?