Cleveland-Cliffs Inc. (CLF) vs Ternium S.A. (TX)

Cleveland-Cliffs Inc. and Ternium S.A. are both Steel companies. Ternium S.A. is the larger, with a market value of $10.9B against $7.2B — 1.5× the size. Cleveland-Cliffs Inc. has negative trailing earnings, so its P/E is not meaningful; Ternium S.A. trades at 15.6×. Cleveland-Cliffs Inc. grew revenue faster over the last twelve months: 4.00% against −1.43%. Ternium S.A. has the higher net margin (4.37% vs −4.56%) and the higher return on invested capital (4.39% vs −3.70%). Across the 20 metrics below, Ternium S.A. leads on 15 and Cleveland-Cliffs Inc. on 5.

Valuation

Metric CLF TX Steel median
P/E n/m 15.58 21.10
P/S 0.36 0.68 0.70
P/B 1.20 0.65 1.39
Price to free cash flow n/m n/m 23.71
EV/EBITDA 52.19 5.64 10.71
EV/Sales 0.77 0.70 0.85
Earnings yield (13.30%) 6.42% 4.56%
Free cash flow yield (12.32%) (4.32%) 0.00%

Profitability

Metric CLF TX Steel median
Gross margin (1.05%) 17.75% 13.91%
Operating margin (4.15%) 7.45% 4.77%
Net margin (4.56%) 4.37% 3.40%
Free cash flow margin (4.46%) (2.94%) 0.00%
Return on equity (14.77%) 4.20% 2.21%
Return on assets (4.32%) 2.89% 1.83%
Return on invested capital (3.70%) 4.39% 2.52%

Growth

Metric CLF TX Steel median
Revenue growth (TTM) 4.00% (1.43%) 11.33%
EPS growth (last fiscal year) (85.35%) 903.70% —
Revenue growth, 5-year CAGR 28.30% 12.31% 6.73%
Net income growth, 5-year CAGR 0.00% (11.39%) 0.00%

Health

Metric CLF TX Steel median
Debt to equity 1.32 0.18 0.22
Current ratio 1.89 2.58 2.58
Net debt to EBITDA (20.92) (0.41) 0.10

Dividend

Metric CLF TX Steel median
Dividend yield — 7.42% 2.48%
Payout ratio 0.00 0.44 0.04

Size

Metric CLF TX Steel median
Market cap 7.21b 10.90b 1.46b

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