Cleveland-Cliffs Inc. (NYSE:CLF) has hit a new 52-week low, trading at $5.76 amid mounting macroeconomic pressures and internal challenges. The steelmaker’s stock has plunged by more than 66% over the past year, reflecting investor concerns about debt levels, earnings volatility, and broader market headwinds.
Despite the sharp decline, analysts suggest that the stock may be oversold, citing technical indicators such as the Relative Strength Index (RSI), which point to potential undervaluation. Cleveland-Cliffs maintains a solid current ratio of 2.13, signaling adequate liquidity for near-term obligations, but the company’s elevated debt burden continues to weigh on sentiment.
Recent credit developments have further complicated the picture. S&P Global Ratings downgraded the company’s credit outlook to Negative, citing subdued earnings and weaker cash flow projections. While Cleveland-Cliffs retained its BB- credit rating, concerns are rising around the financial impact of its acquisition of Stelco and ongoing underperformance in non-core operations.
For fiscal 2025, the company expects adjusted EBITDA in the range of $800 million to $1 billion—up from $415 million in 2024, but still falling short of previous years. Analysts remain cautious. Jefferies recently downgraded Cleveland-Cliffs from Buy to Hold, lowering its price target to $6. The move reflects uncertainties surrounding Nippon Steel’s investment in U.S. Steel, which could affect market dynamics.
GLJ Research took a more bearish stance, slashing its rating to Sell and setting a price target of $3.91. The firm cited increased debt load and erosion in market share as key risks.
At the company’s recent Annual Meeting, shareholders backed management, voting with over 90% approval on executive compensation proposals and re-electing the current board of directors. Deloitte & Touche LLP was also confirmed as the company’s independent auditor for the 2025 fiscal year.
With mounting financial pressures and investor wariness, Cleveland-Cliffs faces a critical period ahead. Its ability to manage debt, improve operational efficiency, and adapt to shifting market conditions will be key to determining whether it can stabilize and recover from its current lows.