Cleveland-Cliffs Inc. (CLF)

Introduction

Cleveland-Cliffs Inc. (ticker: CLF) is a publicly traded, vertically integrated steel producer listed on the New York Stock Exchange (NYS). Headquartered in Cleveland, Ohio, the company supplies value-added sheet products, particularly to the automotive sector, and controls its entire value chain from iron-ore mining through primary steelmaking and downstream finishing.

Corporate Profile and Structure

• Founded: 1847
• Headquarters: Cleveland, Ohio
• Employees: Approximately 30,000 across the U.S. and Canada
• Operations:
  • Four iron-ore mines in Minnesota; two in Michigan
  • Hot-briquetted iron facility in Toledo, Ohio
  • Three coke-making plants (Indiana, Pennsylvania, Ohio)
  • Multiple fully integrated steel mills and finishing facilities in eight U.S. states
• Sustainability Initiatives:
  • 25% reduction in carbon emissions (since baseline year)
  • Water conservation programs
  • CO₂e emissions reported for December 31, 2020, at 32,200 Kt

Recent Developments and News

• May 8, 2025: Filed first-quarter Form 10-Q for the period ended March 31, 2025.
• May 21, 2025: Submitted an 8-K under Item 5.07, which pertains to financial statement disclosure.
• May 30, 2025: Filed Specialized Disclosure (Form SD) on conflict minerals compliance for the calendar year 2024.
• 2025 Souper Bowl Drive: Employees collected 415,000 lbs of non-perishable food, representing a 25% increase over 2024; The Cleveland-Cliffs Foundation granted $250,000 to local food banks.
• Government Engagements (2025):
  • Hosted Acting Secretary of Labor Julie Su and Mine Safety officials at the Tilden Mine in Michigan to discuss “Made in America” policies.
  • Welcomed U.S. Trade Representative Katherine Tai and trade officials at the Coatesville, Pennsylvania mill following the imposition of new tariffs on imports from China.
  • Met with U.S. Secretary of Transportation Pete Buttigieg and state officials at the Steelton, Pennsylvania mill to discuss infrastructure-related steel supplies.
• Transformers Plant in Weirton, WV: Announced plans to repurpose the Half Moon Warehouse into a three-phase electrical distribution transformer facility, creating re-employment opportunities for 600 United Steelworkers (USW)-represented workers and sourcing Grain Oriented Electrical Steel (GOES) from the Butler Works mill.

Financial and Strategic Analysis

Stock and Market Metrics (as of June 2, 2025)

Metric	Value
Stock Price	$7.37
Daily Change	+26.44%
Volume	4,252,605
Market Capitalization (intraday)	$2.88 billion
Beta (5-year monthly)	1.85
Price/Sales (TTM)	0.15
Price/Book (MRQ)	0.46
1-year Target Estimate	$9.09

Key Financial Ratios

Ratio	Value
Profit Margin (TTM)	–6.35%
Return on Assets (TTM)	–3.04%
Return on Equity (TTM)	–16.34%
Total Cash (MRQ)	$57 million
Total Debt/Equity (MRQ)	117.6%
Levered Free Cash Flow (TTM)	–$1.06 billion

Strategic Initiatives

• Trade Policy and “Buy American” Program: Supports U.S. steel tariffs and has established an automotive incentive program for employees.
• Vertical Integration: Owns iron-ore mines, pellet plants, scrap processing facilities, primary steelmaking, and tubular operations.
• Acquisitions: Acquired AK Steel Holding in 2020 for approximately $1.1 billion and ArcelorMittal USA for around $1.4 billion, positioning itself as North America’s largest flat-rolled steel producer.
• Regulatory Compliance: Conducts ongoing conflict minerals due diligence (Form SD) and paid a settlement of $3 million related to Clean Water Act violations in February 2022.

Market Position and Industry Context

• Flat-Rolled Steel Leader: Cleveland-Cliffs is recognized as the largest flat-rolled steel producer in North America and the third-largest steelmaker in the U.S. (as of 2022).
• Automotive Focus: Serves as a primary supplier of value-added sheet products for light-vehicle manufacturing.
• Competitive Landscape: Competes with U.S. Steel, Nucor, and Steel Dynamics, with the industry influenced by tariff policy, global overcapacity, and raw material costs.
• Sustainability Drive: The company's commitment to waste reduction, water conservation, and carbon-emission reductions aligns with original equipment manufacturer (OEM) and regulatory demands.

tl;dr

• May 8, 2025: Q1 2025 10-Q filed; May 30, 2025: Conflict minerals SD filed.
• Stock Price: $7.37 (+26.44% intraday); Market Cap: $2.88 billion; P/S: 0.15; P/B: 0.46.
• 2025 Souper Bowl Drive: Raised 415,000 lbs of food; $250,000 in foundation grants.
• Weirton, WV Transformer Plant: Announced to rehire 600 workers and source GOES.
• Focus Areas: U.S. steel tariffs, “Buy American” incentives, and sustainability goals.
• 1-Year Price Target: $9.09.