Cleveland-Cliffs Inc. (CLF) vs Grupo Simec, S.A. de C.V. (SIM)

Cleveland-Cliffs Inc. and Grupo Simec, S.A. de C.V. are both Steel companies. Cleveland-Cliffs Inc. is the larger, with a market value of $7.2B against $5.0B — 1.5× the size. Cleveland-Cliffs Inc. has negative trailing earnings, so its P/E is not meaningful; Grupo Simec, S.A. de C.V. trades at 24.0×. Grupo Simec, S.A. de C.V. grew revenue faster over the last twelve months: 7.58% against 4.00%. Grupo Simec, S.A. de C.V. has the higher net margin (11.2% vs −4.56%) and the higher return on invested capital (9.61% vs −3.70%). Across the 20 metrics below, Grupo Simec, S.A. de C.V. leads on 13 and Cleveland-Cliffs Inc. on 7.

Valuation

Metric CLF SIM Steel median
P/E n/m 24.04 21.10
P/S 0.36 2.78 0.70
P/B 1.20 1.39 1.39
Price to free cash flow n/m n/m 23.71
EV/EBITDA 52.19 9.19 10.71
EV/Sales 0.77 1.88 0.85
Earnings yield (13.30%) 4.16% 4.56%
Free cash flow yield (12.32%) (1.22%) 0.00%

Profitability

Metric CLF SIM Steel median
Gross margin (1.05%) 25.34% 13.91%
Operating margin (4.15%) 16.91% 4.77%
Net margin (4.56%) 11.21% 3.40%
Free cash flow margin (4.46%) (3.37%) 0.00%
Return on equity (14.77%) 6.01% 2.21%
Return on assets (4.32%) 5.03% 1.83%
Return on invested capital (3.70%) 9.61% 2.52%

Growth

Metric CLF SIM Steel median
Revenue growth (TTM) 4.00% 7.58% 11.33%
EPS growth (last fiscal year) (85.35%) (87.37%) —
Revenue growth, 5-year CAGR 28.30% (1.23%) 6.73%
Net income growth, 5-year CAGR 0.00% (9.86%) 0.00%

Health

Metric CLF SIM Steel median
Debt to equity 1.32 0.00 0.22
Current ratio 1.89 5.78 2.58
Net debt to EBITDA (20.92) (4.54) 0.10

Dividend

Metric CLF SIM Steel median
Dividend yield — — 2.48%
Payout ratio 0.00 0.00 0.04

Size

Metric CLF SIM Steel median
Market cap 7.21b 4.96b 1.46b

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