|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||13.23 - 13.43|
|52-week range||7.47 - 13.57|
|PE ratio (TTM)||13.29|
|Forward dividend & yield||0.41 (3.15%)|
|1y target est||13.47|
Cleveland-Cliffs (CLF) had accumulated debt over a number of years. In this context, we’ll discuss Cleveland-Cliffs’ ability to generate FCF (free cash flow). In its 4Q16 earnings call, Cleveland-Cliffs’ management noted that it expects to generate FCF of $550 million in 2017.
Vale SA’s (VALE) forward EV-to-EBITDA (enterprise value to earnings before, interest, tax, depreciation, and amortization) multiple is trading at close to 7.2x, the highest among its seaborne iron ore peers. Rio Tinto (RIO) and BHP Billiton (BHP) are trading at similar forward multiples of 6.6x and 6.7x, respectively. As we’ve previously mentioned, Cleveland-Cliffs (CLF) is a US-focused player with small direct exposure to the seaborne iron ore market.
BHP Billiton's (BHP) aggregate iron-ore productivity flat year over year at the end of first-half fiscal 2018. The company kept a positive outlook and reaffirmed its iron-ore output guidance.
Earlier in this series, we analyzed iron ore miners’ ratings and estimates. In this article, we’ll discuss these miners’ technical indicators. The trailing-three-month returns of all of the miners we’ve discussed are positive.
In this article, we’ll discuss analysts’ projections for Cleveland-Cliffs (CLF). Currently, US steel imports and US steel prices are the major factors affecting Cliffs’ estimates. Analysts expect Cleveland-Cliffs to report revenue of $2.3 billion in 2017, which would imply a rise of 11.1% YoY (year-over-year).
Among the miners we’re discussing in this series, Vale SA (VALE) has the highest percentage of “buy” ratings at 65.2%. Many factors have contributed to the positive shift in the overall sentiment for Vale. The stock’s target price has risen 71% in the last year due to the positive turnaround of the company’s fundamentals. Vale’s peers (XME) Rio Tinto (RIO) (TRQ) and BHP Billiton (BHP) haven’t seen such growth in their target prices.
Rio Tinto (RIO) (TRQ) stock returned a positive 37.6% in 2017. As we noted earlier in this series, some of the positives have now become so obvious that analysts have downgraded Rio, saying that these positives have already been priced in to its stock. Let’s take a look at the company’s revenue and earnings estimates.
The majority of ratings for BHP Billiton (BHP) are “buys,” with 61% of analysts recommending as much on the stock. The consensus target price for BHP is $30.0, which implies a potential downside of -3.1% based on its current market price. BHP’s most recent rating change came from JPMorgan Chase (JPM), which upgraded the stock from an “underweight” to a “neutral” on December 14, 2017.
Increased mining yield, lower debt and improving iron-ore prices anticipated to boost Vale S.A.'s (VALE) near-term competency. However, headwinds might impede growth.
Teck Resources’ 2018 Outlook: Can the Uptrend Continue? Coking coal (BHP), which is used in steel production, has been the key earnings driver for Teck Resources (TECK) for the last few quarters. Chinese demand is the key driver of seaborne coking coal and iron ore prices (RIO) (VALE).
Currently, the last three-month stock returns for all major iron ore and US steel companies have been positive. U.S. Steel (X) has given the highest positive return of 37.4%. Steel Dynamics (STLD) follows with a return of 25.6%.
To understand the usage outlook for steel in China, we’ll analyze China’s property and auto sector sales in this article. China’s property sector is a steel-intensive market—consuming approximately 50% of overall steel in the country—followed by the automotive industry. The recent indicators from China are signaling a slowdown in the Chinese property market.
While analyzing iron ore demand, it is vital to track Chinese demand, since it consumes more than half of the seaborne-traded iron ore (COMT). In this article, we’ll discuss iron ore imports and Chinese steel production to assess its future outlook. China imported 94.5 million tons of iron ore in November 2017, which is an increase of 2.8% year-over-year (or YoY) and 18.9% sequentially.
The industrial metals and mining stocks ended 2017 on a strong note, and the reason may change the way investors look at the sector.
The China Association of Automobile Manufacturers originally forecast 5.0% growth in total vehicle sales for 2017.
Due to the government’s efforts to fight pollution in winter months, steel prices in China have hit a nine-year high in the first week of December 2017.
Overall, China’s steel production in 2017 was strong, which was mostly supported by higher steel prices and firm demand.