Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, iron ore miner Cliffs Natural Resources (NYSE: CLF) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Cliffs' business and see what CAPS investors are saying about the stock right now.

Cliffs facts

Headquarters (Founded)

Cleveland (1847)

Market Cap

$12.82 billion


Industrial metals and minerals

Trailing-12-Month Revenue

$4.68 billion


Chairman/CEO Joseph Carrabba

CFO Laurie Brlas

Return on Equity (Average, Past 3 Years)



$1.57 billion / $1.92 billion

Dividend Yield



BHP Billiton (NYSE: BHP)

Peabody Energy (NYSE: BTU)

Teck Resources (NYSE: TCK)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 1,285 members who have rated Cliffs believe the stock will outperform the S&P 500 going forward. These bulls include All-Star griderX, who is ranked in the top 1% of our community, and stocky5.

Just last week, griderX listed several of Cliffs' positives:

1. Free Cash Flow Yield of around 8%
2. Net Margins of 20 % and increasing
3. Price to Sales of around 2.4
4. Solid Mangement ... they took on some cheap debt and bought out [Consolidated Thompson Iron Mines] (Gateway to Asia Steel Market)

Currently, Cliffs even sports a cheapish forward P/E of 6.9. That represents a discount to listed rivals BHP (11.3), Peabody (11.8), and Teck (8.2).

CAPS member stocky5 elaborates on the bargain opportunity:

The 2011 outlook for iron ore production is positive. Analysts have been raising their target price for [Cliffs] recently, and the company has been consistently beating quarterly earnings estimates. There is also room for P/E multiple expansion at current price levels, in addition to favorable earnings surprises. Currently undervalued.

What do you think about Cliffs, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.