📊 CLF Key Takeaways
Is Cleveland-Cliffs Inc.. (CLF) a Good Investment?
Cleveland-Cliffs is in financial distress with operating losses, negative cash flow (-$325M OCF, -$477M FCF), and insufficient cash reserves ($45M) relative to $7.8B debt obligations. The company cannot cover interest expenses from operations (interest coverage: -1.5x) and faces declining revenues in a cyclical commodity sector.
Cleveland-Cliffs' fundamentals are currently very weak, with razor-thin gross margin, deeply negative operating and net margins, and large losses flowing through to negative operating cash flow and free cash flow. The balance sheet still has meaningful equity and an adequate current ratio, but very low cash, high leverage, and negative interest coverage materially weaken financial flexibility and make the growth profile poor-quality until profitability and cash generation recover.
Why Buy Cleveland-Cliffs Inc.. Stock? CLF Key Strengths
- Maintains working capital management with current ratio of 2.02x for near-term obligations
- Substantial asset base of $20.1B provides operational infrastructure and collateral value
- Continued capital investments of $152M suggest management believes in operational recovery
- Scale remains substantial with $18.61B of revenue
- Current ratio of 1.95x suggests near-term working-capital coverage is not immediately distressed
- The company still retains a sizable equity base of $6.12B
CLF Stock Risks: Cleveland-Cliffs Inc.. Investment Risks
- Severe cash flow deterioration: negative operating cash flow of -$325M with unsustainable -$477M free cash flow
- Critical liquidity crisis: only $45M cash against $7.8B long-term debt and negative interest coverage ratio of -1.5x, limiting debt service capacity
- Unprofitable core operations: -4.3% operating margin, -4.8% net margin, and -3% YoY revenue decline in cyclical commodity sector with thin 11.7% gross margins
- Operating performance is severely impaired, with -8.5% operating margin and -7.9% net margin
- Cash generation is weak, with negative operating cash flow and free cash flow of -$1.02B
- High leverage and negative interest coverage indicate elevated balance-sheet and refinancing risk
Key Metrics to Watch
- Operating cash flow trajectory and path to positive free cash flow
- Interest coverage ratio improvement and debt refinancing capability
- Commodity price recovery impact on gross margins and profitability
- Operating cash flow and free cash flow trend
- Gross margin and interest coverage improvement
Cleveland-Cliffs Inc.. (CLF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.02x current ratio provides a solid financial cushion.
CLF Profit Margin, ROE & Profitability Analysis
CLF vs Materials Sector: How Cleveland-Cliffs Inc.. Compares
How Cleveland-Cliffs Inc.. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cleveland-Cliffs Inc.. Stock Overvalued? CLF Valuation Analysis 2026
Based on fundamental analysis, Cleveland-Cliffs Inc.. shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cleveland-Cliffs Inc.. Balance Sheet: CLF Debt, Cash & Liquidity
CLF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cleveland-Cliffs Inc..'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $0.75 reflects profitable operations.
CLF Revenue Growth, EPS Growth & YoY Performance
CLF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.6B | -$237.0M | $-0.42 |
| Q3 2025 | $4.6B | -$244.0M | $-0.51 |
| Q2 2025 | $4.9B | N/A | N/A |
| Q1 2025 | $4.6B | N/A | N/A |
| Q3 2024 | $4.6B | -$242.0M | $0.52 |
| Q2 2024 | $5.1B | $2.0M | $0.00 |
| Q1 2024 | $5.2B | -$57.0M | $-0.11 |
| Q3 2023 | $5.6B | $152.0M | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cleveland-Cliffs Inc.. Dividends, Buybacks & Capital Allocation
CLF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cleveland-Cliffs Inc.. (CIK: 0000764065)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776978117.xml | View → |
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776978111.xml | View → |
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776978105.xml | View → |
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776978097.xml | View → |
| Apr 23, 2026 | 4 | xslF345X06/wk-form4_1776978090.xml | View → |
❓ Frequently Asked Questions about CLF
What is the AI rating for CLF?
Cleveland-Cliffs Inc.. (CLF) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLF's key strengths?
Claude: Maintains working capital management with current ratio of 2.02x for near-term obligations. Substantial asset base of $20.1B provides operational infrastructure and collateral value. ChatGPT: Scale remains substantial with $18.61B of revenue. Current ratio of 1.95x suggests near-term working-capital coverage is not immediately distressed.
What are the risks of investing in CLF?
Claude: Severe cash flow deterioration: negative operating cash flow of -$325M with unsustainable -$477M free cash flow. Critical liquidity crisis: only $45M cash against $7.8B long-term debt and negative interest coverage ratio of -1.5x, limiting debt service capacity. ChatGPT: Operating performance is severely impaired, with -8.5% operating margin and -7.9% net margin. Cash generation is weak, with negative operating cash flow and free cash flow of -$1.02B.
What is CLF's revenue and growth?
Cleveland-Cliffs Inc.. reported revenue of $4.9B.
Does CLF pay dividends?
Cleveland-Cliffs Inc.. pays dividends, with $41.0M distributed to shareholders in the trailing twelve months.
Where can I find CLF SEC filings?
Official SEC filings for Cleveland-Cliffs Inc.. (CIK: 0000764065) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CLF's EPS?
Cleveland-Cliffs Inc.. has a diluted EPS of $-0.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CLF a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Cleveland-Cliffs Inc.. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CLF stock overvalued or undervalued?
Valuation metrics for CLF: ROE of -4.1% (sector avg: 14%), net margin of -4.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CLF stock in 2026?
Our dual AI analysis gives Cleveland-Cliffs Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CLF's free cash flow?
Cleveland-Cliffs Inc..'s operating cash flow is $-325.0M, with capital expenditures of $152.0M. FCF margin is -9.7%.
How does CLF compare to other Materials stocks?
Vs Materials sector averages: Net margin -4.8% (avg: 10%), ROE -4.1% (avg: 14%), current ratio 2.02 (avg: 1.6).