Top Heavy Capital Structure Speculation – Security Analysis – Cleveland Cliffs Stock (CLF)

This week, I review a speculative approach that Benjamin Graham and David Dodd discuss in the Security Analysis. I apply this concept to Cleveland Cliffs (CLF), and perform a fundamental analysis on the company. I also review various key ratios, and compare CLF to S&P500. The main paragraph that we outlined in the my video is from Chapter 40 (Capitalization Structure). Here is the paragraph:

I apply this above mentioned concept to Cleveland Cliff since, among its peers, it is one of the most leveraged company with the lowest stock price. In the video, I fundamentally analyze Cleveland-Cliffs Inc., which operates as a flat-rolled steel producer in North America. It also manufactures iron ore pellets. The company is vertically integrated from mined raw materials and direct reduced iron to primary steelmaking and downstream finishing, stamping, tooling, and tubing. It serves a range of markets through offering of flat-rolled steel products and supplies steel to the automotive industry. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.

I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.

Timestamp
0:00​ Introduction / Speculative Approach
3:13 CLF Key Ratios Analysis
10:33 Conclusion

If you found my video above helpful and interesting, please do like, share, and subscribe to the YouTube channel

Audio / Podcast

References:

Cleveland Cliff’s Website: here

Morningstar Key Ratios Link: here.

Useful Resources here.

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Superior North LLC’s content is for educational purposes only. The calculators, videos, recommendations, and general investment ideas are not to be actioned with real money. Vyom Joshi is not a professional money manager or a financial advisor. Contact a professional and certified financial advisor before making any financial decisions. Please review the Disclaimer and Terms and Conditions.


 

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