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Cleveland-area public companies see stock prices fall after strong 2021

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Sure, 2021 was a great year for Northeast Ohio public companies — but 2022 isn’t 2021.

The combined value, or market capitalization, of the companies on the full digital version of our Northeast Ohio Public Companies list fell by about 0.3% during the 12 months ending May 3.

That’s a tiny drop, but it would be much bigger if it only included 2022.

Stock indexes including the S&P 500 and the Russell 3000 ended 2021 in record territory and then immediately started heading south, as did many Northeast Ohio stocks.

And they’ve continued in that direction in recent weeks, driven by worries about inflation, oil prices, potential interest rate hikes and lackluster retail sales. Companies on our list — which is built with data from S&P Global Market Intelligence — are ranked by the total value of all their stock, aka their market capitalization, on May 3. (The date is slightly different for a handful of small firms on the full digital list.) Between that date and about 4:30 p.m. last Thursday, May 19, they had lost another 4.6% of their combined value, judging by Google Finance data from 59 of the 63 companies on the full digital list. All but two companies in the top 25 saw a decline since May 3.

But let’s put things in perspective: The S&P 500 and the Russell 3000 as of May 19 were still higher than they were through most of 2020. And earnings for local public companies were strong in 2021. Combined net income for companies on the list increased 60.3%, and combined revenue grew 23.2% over 2020, excluding a few smaller firms for whom we don’t have two years of consistent data.

The Sherwin-Williams Co. took the No. 1 spot back from Progressive Corp. on last year’s list and held onto that spot despite a 4.1% drop in market cap over the 12-month period (which includes a few extra days as last year’s list was based on April 30 data). Progressive, on the other hand, gained 9% and is one of the two companies in the top 25 that didn’t lose market value between May 3 and May 19 (the other is RPM International Inc., No. 12 on the list).

The biggest gainer in the top 20 was Cleveland-Cliffs Inc. at No. 10, which saw its market cap on the list rise 52% (not counting a subsequent 16.7% drop through May 19), thanks in part to strong first-quarter results. The steelmaker also has touted the fact that it isn’t reliant on materials from Ukraine or Russia.

Another steelmaker, TimkenSteel Corp., saw its value rise 66.3% during that same period. That moved TimkenSteel from No. 34 on last year’s list to No. 27 this year.

It would have been at 26 if not for Arhaus Inc. making its debut on the list. The home furnishings retailer went public on the Nasdaq on Nov. 4, 2021.

The full digital list includes a few other newcomers, including two special purpose acquisition companies: Pine Technology Acquisition Corp. of Aurora (No. 35) and Gardiner Healthcare Acquisitions Corp. of Shaker Heights (No. 45). But they may not remain local companies for long, as so-called SPACs are formed for the purpose of merging with other companies, thereby helping the acquired company get listed on a stock exchange. For instance, another local SPAC, Zanite Acquisition Corp., fell off the list when it acquired an electric aircraft company called Eve UAM LLC on May 9. Zanite then changed its name to Eve Holding Inc. It’s now based in Florida.

The Excel version of the list includes up to 10 years of annual market cap, net income and revenue data for many of the 63 companies on the full list. It’s available exclusively to Crain’s Data Members. To learn more, visit CrainsCleveland.com/Data.



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