Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Credit

<ul><li>Cleveland-Cliffs is a major steel producer and is benefitting from the strong macro for the metal.<li></li>Despite this unfavourable backdrop of declining HRC prices and weak service centre demand, the company still managed to generate a good level of profitability.<li></li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Cleveland-Cliffs is a major steel producer and is benefitting from the strong macro for the metal.Despite this unfavourable backdrop of declining HRC prices and weak service centre demand, the company still managed to generate a good level of profitability.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Cleveland-Cliffs Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>This is our first report on major steel producer, Cleveland-Cliffs.<li></li>The slight drawback was the management seeing relatively weak service centre demand in the past few months due to generally high inventory levels.<li></li>Despite this unfavourable backdrop of declining HRC prices and weak service centre demand, the company still managed to produce an earnings beat.</li></ul>

This is our first report on major steel producer, Cleveland-Cliffs.The slight drawback was the management seeing relatively weak service centre demand in the past few months due to generally high inventory levels.Despite this unfavourable backdrop of declining HRC prices and weak service centre demand, the company still managed to produce an earnings beat.

Cleveland-Cliffs Inc.: Initiation of Coverage – Business Overhaul

Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Cleveland-Cliffs has been one of the greatest transformation stories, returning 150% since my first bullish thesis in 2019.</li>
<li>Strategic capital allocation and long-term perspective of the management created solid competitive advantages that are almost impossible to replicate.</li>
<li>In spite of the extremely bullish investor sentiment, I took the hard decision to sell my stake in the company.</li>
</ul>


Cleveland-Cliffs has been one of the greatest transformation stories, returning 150% since my first bullish thesis in 2019.
Strategic capital allocation and long-term perspective of the management created solid competitive advantages that are almost impossible to replicate.
In spite of the extremely bullish investor sentiment, I took the hard decision to sell my stake in the company.


Independent Research, Turtles all the way down

Turtles all the way down

Independent Research

Writing short articles about mis-priced boring stocks around the world.

<p>Whenever I get a bit too interested in macro economics I see it as a signal that I need reduce my commodity exposure. I wrote short write-ups on CLF (steel), PXD (mostly oil) and TOU (mostly gas) in the past month or so. And was long all three. I still like them, but not enough to hold on to them.</p>

Whenever I get a bit too interested in macro economics I see it as a signal that I need reduce my commodity exposure. I wrote short write-ups on CLF (steel), PXD (mostly oil) and TOU (mostly gas) in the past month or so. And was long all three. I still like them, but not enough to hold on to them.

Cleveland-Cliffs, Pioneer Natural Resources, Tourmaline Oil: Too Much Commodity Exposure

<ul>
<li>Trading at 10-12x FCF, debt free and ~10% ROIC at 2019 steel prices</li>
<li>2019 steel prices were reflective of past decade average</li>
<li>Likely trading at 20-25% FCF yield going forward</li>
<li>Company will have low cost advantage</li>
<li>Everything set up perfectly for higher steel prices in medium term</li>
</ul>


Trading at 10-12x FCF, debt free and ~10% ROIC at 2019 steel prices
2019 steel prices were reflective of past decade average
Likely trading at 20-25% FCF yield going forward
Company will have low cost advantage
Everything set up perfectly for higher steel prices in medium term


United States

United States Steel Corporation operates as an integrated steel producer. The Company manufactures flat-rolled and tubular products with production operations in North America and Europe. United States Steel serves the automotive, appliance, container, industrial machinery, construction, and oil and gas industries.

Alcoa Corporation manufactures metal products. The Company produces and sells bauxite, alumina, and aluminum products. Alcoa serves aluminum industry worldwide.

Royal Gold, Inc. acquires and manages precious metals royalties.  The Company seeks to acquire existing royalties or to finance projects that are in production or near production in exchange for royalty interests.  Royal Gold Inc.'s gold-focused portfolio contains royalties ranging from those in production and development to those in the evaluation and exploration stages.

Carpenter Technology Corporation manufactures, fabricates, and distributes stainless steels, titanium, and specialty metal alloys.  Carpenter processes basic metal alloying elements into finished products such as billets, bars, rods, and various special shapes. The Company also manufactures engineered products such as ceramics and metal injected molded designs.

Allegheny Technologies, Inc., produces specialty materials.  The Company's products include include titanium and titanium alloys, nickel-based alloys and superalloys, zirconium, hafnium and niobium, stainless and specialty steel alloys, grain-oriented electrical steel, tungsten-based materials and cutting tools, carbon alloy impression die forgings, and large grey and ductile iron.

Commercial Metals Company and its subsidiaries manufacture, recycle, and market steel and metal products and related materials.  The Company markets and trades primary and secondary metals, steel, ores, concentrates, industrial minerals, ferroalloys, chemicals, and other materials used in a variety of industries.

Ternium S.A. manufactures and processes various steel products in Mexico, Argentina, Bolivia, Chile, Paraguay, Uruguay, Colombia, the United States, Central America, and internationally. The company operates in two segments, Steel and Mining. The Steel segment offers steel products, such as slabs, billets and round bars, hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plates, hot dipped galvanized and electrogalvanized sheets, pre-painted sheets, steel pipes and tubular products, beams, roll formed products, and other products. The Mining segment sells iron ore concentrates and pellets. The company serves various companies and small businesses operating in construction, automotive, home appliances, capital goods, container, food, and energy industries. Ternium S.A. was founded in 1961 and is headquartered in Buenos Aires, Argentina. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

Hecla Mining Company explores, develops, and mines precious metals, gold and silver.  The Company has operations in the United States and Mexico.

Warrior Met Coal, Inc. provides coal mining services. The Company produces and exports metallurgical coal for the steel industry. Warrior Met Coal serves customers in the United States, Europe, Asia, and South America.

Constellium SE provides development and manufacturing of aluminium products. The Company offers cansheet, closures, plates, sheets and extrusions, body sheet, structural components, crash management systems, plates, and other related products. Constellium serves packaging, automotive, aerospace, transportation, defense, construction, and electronics markets worldwide.

BlueScope Steel Limited supplies steel products and solutions. The Company manufactures steel slabs, plates, hot and cold rolled coils, and coated and painted strip products for building and construction, automotive, whitegoods, and manufacturing applications. BlueScope Steel serves customers in Asia, Australia, New Zealand, and the United States.

Kobe Steel, Ltd. is a steelmaker, as well as a supplier of aluminum and copper products.  The products include steel plates and steel rods.  The Company also operates other businesses such as welding consumables, urban infrastructure, plant engineering, and industrial & construction machinery.  Kobe Steel has operating offices in the US, Europe, and Asia.

JFE Holdings, Inc. is a holding company which was established through the merger of NKK Corp and Kawasaki Steel Corp.  The Company manages and conducts its subsidiaries' business, which is steel production and integrated engineering services.

OZ Minerals Ltd. is an Australian based mining company with a focus on copper. The Company owns and operates the Prominent Hill copper-gold mine and the Carrapateena copper-gold project located in South Australia and has a number of equity interests in listed resource companies.

NMDC Limited explores for minerals. The Company is exploring for iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands.

Yunnan Aluminium Co., Ltd. primarily manufactures and markets aluminum products. The Company's products include aluminum ingots, aluminum rolls, and aluminum alloys.

Jinduicheng Molybdenum Co.,Ltd. is involved in molybdenum mining, dressing, smelting, processing, research and trade in Asia.

Jinduicheng Molybdenum Co, Ltd. (601958 CH)

Huaibei Mining Holdings Co.,Ltd. operates coal businesses. The Company mines, processes, and distributes coal, cokes, coal chemical products, and other products. Huaibei Mining Holdings also produces methanol, crude benzene, ammonium sulfate, and other products.

Shandong Nanshan Aluminum Co., Ltd. designs, manufactures, and markets aluminum products and worsted woolen products. The Company's major aluminum offerings are electrolytic aluminum and section aluminum. Its woolen products include soybean fiber fabrics, silk fabrics, wool/flax fabrics and cashmere. Shandong also generates and supplies electricity.

Zhaojin Mining Industry Company Ltd. explores, mines, and produces gold.  The Company holds interest in properties in eastern China.

Cleveland-Cliffs Inc. is an American iron ore mining company. The Company supplies iron ore pellets, lumps and fines to blast furnaces in the global steel industry. Cliffs is in the process of expanding its customer base to Electric Arc Furnaces.

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Cleveland-Cliffs Inc (CLF US)

Cleveland-Cliffs Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Cleveland-Cliffs is a major steel producer and is benefitting from the strong macro for the metal. Despite this unfavourable backdrop of declining...

Baptista Research

Cleveland-Cliffs Inc.: Initiation of Coverage – Business Overhaul

This is our first report on major steel producer, Cleveland-Cliffs. The slight drawback was the management seeing relatively weak service centre...

Baptista Research

Cleveland-Cliffs: Proceed With Caution

Cleveland-Cliffs has been one of the greatest transformation stories, returning 150% since my first bullish thesis in 2019. Strategic capital...

Vladimir Dimitrov, CFA

Cleveland-Cliffs, Pioneer Natural Resources, Tourmaline Oil: Too Much Commodity Exposure

Whenever I get a bit too interested in macro economics I see it as a signal that I need reduce my commodity exposure. I wrote short write-ups on...

Turtles all the way down

Cleveland-Cliffs

Trading at 10-12x FCF, debt free and ~10% ROIC at 2019 steel prices. 2019 steel prices were reflective of past decade average. Likely trading at...

Turtles all the way down

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)