Cleveland-Cliffs Inc (NYSE: CLF) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $10.16 billion, with a current price of $20.13. Over the past week, the stock has experienced an 11.52% gain, showcasing a significant uptick in investor confidence. However, looking at a broader timeframe, Cleveland-Cliffs has seen a 24.41% loss over the past three months. Despite this, the stock is currently considered modestly undervalued with a GF Value of $24.15, compared to a past GF Value of $30.36. This shift from a past valuation suggesting investors to think twice, to a current modest undervaluation, indicates a potential opportunity for value investors.
Understanding Cleveland-Cliffs Inc
Cleveland-Cliffs Inc, a titan in the steel industry, is a leading producer of flat-rolled steel and iron ore pellets in North America. The company's vertical integration strategy, from raw materials to finished products, allows it to serve a wide range of markets, with a strong foothold in the automotive sector. Operating primarily in the United States and Canada, Cleveland-Cliffs has established itself as a key supplier to the North American automotive industry. 
Profitability Insights
When it comes to profitability, Cleveland-Cliffs boasts a Profitability Rank of 8 out of 10, indicating a strong ability to generate profits relative to its peers. The company's operating margin stands at 2.73%, outperforming 40.4% of its industry counterparts. Additionally, its return on equity (ROE) of 4.45%, return on assets (ROA) of 1.82%, and return on invested capital (ROIC) of 2.78% all surpass the median values of their respective industry peers. These figures not only demonstrate Cleveland-Cliffs' efficiency in utilizing its resources but also its competitive edge in the steel industry. 
Growth Trajectory
Cleveland-Cliffs' growth metrics are equally impressive, with a Growth Rank of 9 out of 10. The company has achieved a staggering 84.30% 3-Year Revenue Growth Rate per Share, outpacing 98.3% of its industry peers. Its 5-Year Revenue Growth Rate per Share is also robust at 53.70%, better than 98.55% of competitors. Furthermore, the 3-Year EPS without NRI Growth Rate is 33.40%, which is superior to 56.16% of industry peers. These growth rates underscore Cleveland-Cliffs' strong market position and its ability to expand its financials at an impressive pace. 
Notable Shareholders
Among the notable investors in Cleveland-Cliffs, Ken Fisher (Trades, Portfolio) leads the pack with 7,743,452 shares, representing a 1.53% stake in the company. Jeremy Grantham (Trades, Portfolio) holds 2,052,127 shares, accounting for 0.41%, while Joel Greenblatt (Trades, Portfolio) owns 714,361 shares, equating to a 0.14% share percentage. The presence of these prominent investors signals a vote of confidence in the company's future prospects.
Competitive Landscape
In comparison to its competitors, Cleveland-Cliffs holds its ground with a market cap close to that of United States Steel Corp (X, Financial) at $10.75 billion, and ahead of Ternium SA (TX, Financial) and Commercial Metals Co (CMC, Financial), which have market caps of $7.68 billion and $6.16 billion, respectively. This positioning reflects Cleveland-Cliffs' significant role in the steel industry and its ability to maintain a competitive edge.
Conclusion
In summary, Cleveland-Cliffs Inc's recent stock performance, with an 11.52% gain over the past week and a 24.41% loss over the past three months, paints a picture of a company that has faced challenges yet remains resilient. Its current modest undervaluation, according to GF Value, suggests potential for growth. The company's strong profitability and impressive growth rates, coupled with its strategic market position and the backing of influential investors, position Cleveland-Cliffs as a compelling option for value investors. As the steel industry continues to evolve, Cleveland-Cliffs' integrated business model and financial metrics indicate a robust outlook for the future.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
