COMMERCIAL METALS CO (CMC)
US2017231034 - Common Stock
Overall CMC gets a fundamental rating of 7 out of 10. We evaluated CMC against 157 industry peers in the Metals & Mining industry. CMC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CMC has a bad growth rate and is valued cheaply. These ratings could make CMC a good candidate for value investing.
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.
In the past 5 years CMC has always been profitable.
Each year in the past 5 years CMC had a positive operating cash flow.
1.2 Ratios
CMC's Return On Assets of 8.43% is amongst the best of the industry. CMC outperforms 84.71% of its industry peers.
CMC has a better Return On Equity (13.28%) than 82.17% of its industry peers.
The Return On Invested Capital of CMC (10.41%) is better than 85.99% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CMC is significantly above the industry average of 8.91%.
The last Return On Invested Capital (10.41%) for CMC is well below the 3 year average (16.68%), which needs to be investigated, but indicates that CMC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.43% | ||
| ROE | 13.28% | ||
| ROIC | 10.41% |
ROA(3y)13.79%
ROA(5y)10.7%
ROE(3y)25.3%
ROE(5y)20.58%
ROIC(3y)16.68%
ROIC(5y)14.23%
1.3 Margins
CMC's Profit Margin of 6.95% is fine compared to the rest of the industry. CMC outperforms 75.16% of its industry peers.
In the last couple of years the Profit Margin of CMC has grown nicely.
CMC's Operating Margin of 9.69% is fine compared to the rest of the industry. CMC outperforms 66.24% of its industry peers.
CMC's Operating Margin has improved in the last couple of years.
CMC has a Gross Margin (17.95%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CMC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 6.95% | ||
| GM | 17.95% |
OM growth 3Y15.32%
OM growth 5Y22.05%
PM growth 3Y24.17%
PM growth 5Y26.79%
GM growth 3Y6.08%
GM growth 5Y8.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CMC is creating 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.
The debt/assets ratio for CMC has been reduced compared to a year ago.
2.2 Solvency
CMC has an Altman-Z score of 4.63. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC has a Altman-Z score of 4.63. This is in the better half of the industry: CMC outperforms 71.97% of its industry peers.
The Debt to FCF ratio of CMC is 2.19, which is a good value as it means it would take CMC, 2.19 years of fcf income to pay off all of its debts.
CMC has a Debt to FCF ratio of 2.19. This is in the better half of the industry: CMC outperforms 77.07% of its industry peers.
CMC has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
CMC has a worse Debt to Equity ratio (0.27) than 61.15% of its industry peers.
Even though the debt/equity ratio score it not favorable for CMC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 4.63 |
ROIC/WACC1.29
WACC8.09%
2.3 Liquidity
A Current Ratio of 4.24 indicates that CMC has no problem at all paying its short term obligations.
The Current ratio of CMC (4.24) is better than 75.16% of its industry peers.
CMC has a Quick Ratio of 2.83. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC has a better Quick ratio (2.83) than 71.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.24 | ||
| Quick Ratio | 2.83 |
3. Growth
3.1 Past
CMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.95%.
The Earnings Per Share has been growing by 40.92% on average over the past years. This is a very strong growth
Looking at the last year, CMC shows a decrease in Revenue. The Revenue has decreased by -9.54% in the last year.
Measured over the past years, CMC shows a quite strong growth in Revenue. The Revenue has been growing by 13.64% on average per year.
EPS 1Y (TTM)-35.95%
EPS 3Y40.93%
EPS 5Y40.92%
EPS Q2Q%-49.5%
Revenue 1Y (TTM)-9.54%
Revenue growth 3Y17.13%
Revenue growth 5Y13.64%
Sales Q2Q%-11.36%
3.2 Future
The Earnings Per Share is expected to decrease by -12.78% on average over the next years. This is quite bad
CMC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.64% yearly.
EPS Next Y-36.41%
EPS Next 2Y-17.18%
EPS Next 3Y-12.78%
EPS Next 5YN/A
Revenue Next Year-9.14%
Revenue Next 2Y-3.73%
Revenue Next 3Y-0.64%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.56 indicates a reasonable valuation of CMC.
83.44% of the companies in the same industry are more expensive than CMC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.41, CMC is valued rather cheaply.
A Price/Forward Earnings ratio of 11.90 indicates a reasonable valuation of CMC.
Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than the industry average as 74.52% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CMC to the average of the S&P500 Index (20.59), we can say CMC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
74.52% of the companies in the same industry are more expensive than CMC, based on the Enterprise Value to EBITDA ratio.
84.08% of the companies in the same industry are more expensive than CMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.68 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
The excellent profitability rating of CMC may justify a higher PE ratio.
A cheap valuation may be justified as CMC's earnings are expected to decrease with -12.78% in the coming years.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-17.18%
EPS Next 3Y-12.78%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.66, CMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of CMC has a limited annual growth rate of 5.84%.
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)5.84%
Div Incr Years3
Div Non Decr Years12
5.3 Sustainability
13.57% of the earnings are spent on dividend by CMC. This is a low number and sustainable payout ratio.
DP13.57%
EPS Next 2Y-17.18%
EPS Next 3Y-12.78%
COMMERCIAL METALS CO
NYSE:CMC (7/26/2024, 7:22:39 PM)
After market: 60.35 0 (0%)60.35
+1.3 (+2.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 11.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.43% | ||
| ROE | 13.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.69% | ||
| PM (TTM) | 6.95% | ||
| GM | 17.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.24 | ||
| Quick Ratio | 2.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-35.95%
EPS 3Y40.93%
EPS 5Y
EPS Q2Q%
EPS Next Y-36.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.54%
Revenue growth 3Y17.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y