COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - NYSE:CMC - US2017231034 - Common Stock
58.98 USD
-0.55 (-0.92%)
58.98 USD
0 (0%)
CMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. Both the profitability and the financial health of CMC get a neutral evaluation. Nothing too spectacular is happening here. CMC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year CMC was profitable.
In the past year CMC had a positive cash flow from operations.
Each year in the past 5 years CMC has been profitable.
In the past 5 years CMC always reported a positive cash flow from operatings.
1.2 Ratios
CMC has a Return On Assets (1.18%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.02%, CMC is in line with its industry, outperforming 59.09% of the companies in the same industry.
CMC's Return On Invested Capital of 6.82% is fine compared to the rest of the industry. CMC outperforms 68.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMC is below the industry average of 12.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 2.02% | ||
| ROIC | 6.82% |
ROA(3y)7.08%
ROA(5y)9.93%
ROE(3y)11.39%
ROE(5y)17.84%
ROIC(3y)10.48%
ROIC(5y)13.05%
1.3 Margins
The Profit Margin of CMC (1.09%) is comparable to the rest of the industry.
CMC's Profit Margin has declined in the last couple of years.
CMC has a Operating Margin of 6.67%. This is in the better half of the industry: CMC outperforms 60.39% of its industry peers.
In the last couple of years the Operating Margin of CMC has declined.
Looking at the Gross Margin, with a value of 15.65%, CMC is in line with its industry, outperforming 51.95% of the companies in the same industry.
CMC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.67% | ||
| PM (TTM) | 1.09% | ||
| GM | 15.65% |
OM growth 3Y-23.36%
OM growth 5Y-5.09%
PM growth 3Y-57%
PM growth 5Y-26.62%
GM growth 3Y-9.09%
GM growth 5Y-1.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CMC is still creating some value.
Compared to 1 year ago, CMC has less shares outstanding
The number of shares outstanding for CMC has been reduced compared to 5 years ago.
Compared to 1 year ago, CMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.90 indicates that CMC is not in any danger for bankruptcy at the moment.
CMC's Altman-Z score of 3.90 is in line compared to the rest of the industry. CMC outperforms 57.79% of its industry peers.
CMC has a debt to FCF ratio of 4.34. This is a neutral value as CMC would need 4.34 years to pay back of all of its debts.
CMC has a better Debt to FCF ratio (4.34) than 74.03% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that CMC is not too dependend on debt financing.
CMC has a worse Debt to Equity ratio (0.31) than 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.74
WACC9.24%
2.3 Liquidity
A Current Ratio of 2.78 indicates that CMC has no problem at all paying its short term obligations.
The Current ratio of CMC (2.78) is comparable to the rest of the industry.
CMC has a Quick Ratio of 2.03. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CMC (2.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
CMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.89%.
CMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.60% yearly.
The Revenue has decreased by -1.61% in the past year.
Measured over the past years, CMC shows a small growth in Revenue. The Revenue has been growing by 7.33% on average per year.
EPS 1Y (TTM)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
3.2 Future
CMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.41% yearly.
Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 5.86% on average per year.
EPS Next Y86.26%
EPS Next 2Y34.24%
EPS Next 3Y19.41%
EPS Next 5YN/A
Revenue Next Year10.98%
Revenue Next 2Y8.39%
Revenue Next 3Y5.86%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.72 indicates a rather expensive valuation of CMC.
81.82% of the companies in the same industry are more expensive than CMC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CMC to the average of the S&P500 Index (25.89), we can say CMC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.05, the valuation of CMC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CMC is valued cheaply inside the industry as 81.17% of the companies are valued more expensively.
CMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than the industry average as 79.22% of the companies are valued more expensively.
CMC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CMC is cheaper than 85.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.96 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CMC's earnings are expected to grow with 19.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)5.21
EPS Next 2Y34.24%
EPS Next 3Y19.41%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.21%.
CMC's Dividend Yield is a higher than the industry average which is at 2.63.
Compared to an average S&P500 Dividend Yield of 2.44, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
On average, the dividend of CMC grows each year by 8.46%, which is quite nice.
CMC has been paying a dividend for at least 10 years, so it has a reliable track record.
CMC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.46%
Div Incr Years4
Div Non Decr Years13
5.3 Sustainability
96.19% of the earnings are spent on dividend by CMC. This is not a sustainable payout ratio.
CMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP96.19%
EPS Next 2Y34.24%
EPS Next 3Y19.41%
58.98
-0.55 (-0.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-0.3%
Ins Owners0.58%
Ins Owner Change8.39%
Market Cap6.55B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target66.51 (12.77%)
Short Float %3.25%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP96.19%
Div Incr Years4
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.28%
Min EPS beat(2)-14.1%
Max EPS beat(2)-0.47%
EPS beat(4)0
Avg EPS beat(4)-7.11%
Min EPS beat(4)-14.1%
Max EPS beat(4)-0.47%
EPS beat(8)3
Avg EPS beat(8)-0.01%
EPS beat(12)6
Avg EPS beat(12)1.88%
EPS beat(16)10
Avg EPS beat(16)6.69%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)0.61%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)0.98%
Revenue beat(16)11
Avg Revenue beat(16)0.86%
PT rev (1m)6.67%
PT rev (3m)17.78%
EPS NQ rev (1m)18.66%
EPS NQ rev (3m)56.35%
EPS NY rev (1m)22.35%
EPS NY rev (3m)28.47%
Revenue NQ rev (1m)-2.43%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)2.55%
Revenue NY rev (3m)2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 10.05 | ||
| P/S | 0.84 | ||
| P/FCF | 20.96 | ||
| P/OCF | 9.15 | ||
| P/B | 1.56 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)3.15
EY5.34%
EPS(NY)5.87
Fwd EY9.95%
FCF(TTM)2.81
FCFY4.77%
OCF(TTM)6.44
OCFY10.93%
SpS70.28
BVpS37.79
TBVpS32.4
PEG (NY)0.22
PEG (5Y)5.21
Graham Number51.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 2.02% | ||
| ROCE | 8.79% | ||
| ROIC | 6.82% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 9.44% | ||
| OM | 6.67% | ||
| PM (TTM) | 1.09% | ||
| GM | 15.65% | ||
| FCFM | 4% |
ROA(3y)7.08%
ROA(5y)9.93%
ROE(3y)11.39%
ROE(5y)17.84%
ROIC(3y)10.48%
ROIC(5y)13.05%
ROICexc(3y)12.06%
ROICexc(5y)15.07%
ROICexgc(3y)13.75%
ROICexgc(5y)16.82%
ROCE(3y)13.52%
ROCE(5y)16.85%
ROICexgc growth 3Y-30.12%
ROICexgc growth 5Y-6.95%
ROICexc growth 3Y-30.19%
ROICexc growth 5Y-8.85%
OM growth 3Y-23.36%
OM growth 5Y-5.09%
PM growth 3Y-57%
PM growth 5Y-26.62%
GM growth 3Y-9.09%
GM growth 5Y-1.94%
F-Score4
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 140.91% | ||
| Cap/Sales | 5.17% | ||
| Interest Coverage | 10.18 | ||
| Cash Conversion | 88.74% | ||
| Profit Quality | 368.82% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 3.9 |
F-Score4
WACC9.24%
ROIC/WACC0.74
Cap/Depr(3y)177.95%
Cap/Depr(5y)180.18%
Cap/Sales(3y)5.38%
Cap/Sales(5y)4.79%
Profit Quality(3y)191.04%
Profit Quality(5y)120.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
EPS Next Y86.26%
EPS Next 2Y34.24%
EPS Next 3Y19.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
Revenue Next Year10.98%
Revenue Next 2Y8.39%
Revenue Next 3Y5.86%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year98.29%
EBIT Next 3Y34.67%
EBIT Next 5Y29.96%
FCF growth 1Y-45.74%
FCF growth 3Y7.65%
FCF growth 5Y-12.35%
OCF growth 1Y-20.52%
OCF growth 3Y0.7%
OCF growth 5Y-2%
COMMERCIAL METALS CO / CMC FAQ
What is the fundamental rating for CMC stock?
ChartMill assigns a fundamental rating of 5 / 10 to CMC.
What is the valuation status of COMMERCIAL METALS CO (CMC) stock?
ChartMill assigns a valuation rating of 7 / 10 to COMMERCIAL METALS CO (CMC). This can be considered as Undervalued.
What is the profitability of CMC stock?
COMMERCIAL METALS CO (CMC) has a profitability rating of 4 / 10.
How financially healthy is COMMERCIAL METALS CO?
The financial health rating of COMMERCIAL METALS CO (CMC) is 6 / 10.
Can you provide the expected EPS growth for CMC stock?
The Earnings per Share (EPS) of COMMERCIAL METALS CO (CMC) is expected to grow by 86.26% in the next year.