COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
NYSE:CMC - New York Stock Exchange, Inc. - US2017231034 - Common Stock - Currency: USD
CMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 valuation in line with the averages, but it does not seem to be growing.
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.
CMC had positive earnings in each of the past 5 years.
CMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.53%, CMC perfoms like the industry average, outperforming 57.96% of the companies in the same industry.
With a Return On Equity value of 0.90%, CMC perfoms like the industry average, outperforming 58.60% of the companies in the same industry.
CMC has a better Return On Invested Capital (6.08%) than 68.15% of its industry peers.
CMC had an Average Return On Invested Capital over the past 3 years of 15.00%. This is above the industry average of 12.07%.
The last Return On Invested Capital (6.08%) for CMC is well below the 3 year average (15.00%), which needs to be investigated, but indicates that CMC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 0.9% | ||
| ROIC | 6.08% |
ROA(3y)13.2%
ROA(5y)11.07%
ROE(3y)23.07%
ROE(5y)20.4%
ROIC(3y)15%
ROIC(5y)13.7%
1.3 Margins
The Profit Margin of CMC (0.48%) is comparable to the rest of the industry.
CMC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.02%, CMC is in line with its industry, outperforming 58.60% of the companies in the same industry.
CMC's Operating Margin has improved in the last couple of years.
The Gross Margin of CMC (14.98%) is comparable to the rest of the industry.
CMC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.02% | ||
| PM (TTM) | 0.48% | ||
| GM | 14.98% |
OM growth 3Y-1.14%
OM growth 5Y5.51%
PM growth 3Y-0.05%
PM growth 5Y12.5%
GM growth 3Y1.42%
GM growth 5Y4.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMC is creating some value.
CMC has less shares outstanding than it did 1 year ago.
CMC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CMC is higher compared to a year ago.
2.2 Solvency
CMC has an Altman-Z score of 3.77. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC has a better Altman-Z score (3.77) than 66.24% of its industry peers.
The Debt to FCF ratio of CMC is 3.57, which is a good value as it means it would take CMC, 3.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.57, CMC is in the better half of the industry, outperforming 76.43% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that CMC is not too dependend on debt financing.
CMC's Debt to Equity ratio of 0.32 is on the low side compared to the rest of the industry. CMC is outperformed by 62.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.67
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.86 indicates that CMC has no problem at all paying its short term obligations.
CMC's Current ratio of 2.86 is in line compared to the rest of the industry. CMC outperforms 59.87% of its industry peers.
A Quick Ratio of 2.00 indicates that CMC has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.00, CMC is doing good in the industry, outperforming 60.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
CMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.66%.
Measured over the past years, CMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.44% on average per year.
The Revenue has decreased by -5.64% in the past year.
The Revenue has been growing slightly by 6.34% on average over the past years.
EPS 1Y (TTM)-48.66%
EPS 3Y7.76%
EPS 5Y16.44%
EPS Q2Q%-27.45%
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.6%
Revenue growth 5Y6.34%
Sales Q2Q%-2.81%
3.2 Future
CMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.46% yearly.
Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 3.90% on average per year.
EPS Next Y-27.84%
EPS Next 2Y1.54%
EPS Next 3Y0.46%
EPS Next 5YN/A
Revenue Next Year-1.97%
Revenue Next 2Y2.98%
Revenue Next 3Y3.9%
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 19.34 indicates a rather expensive valuation of CMC.
CMC's Price/Earnings ratio is a bit cheaper when compared to the industry. CMC is cheaper than 77.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. CMC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.35, the valuation of CMC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CMC indicates a somewhat cheap valuation: CMC is cheaper than 74.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 11.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than the industry average as 77.07% 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 86.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.42 | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
CMC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y1.54%
EPS Next 3Y0.46%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, CMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of CMC is nicely growing with an annual growth rate of 7.29%!
CMC has paid a dividend for at least 10 years, which is a reliable track record.
CMC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.29%
Div Incr Years4
Div Non Decr Years13
5.3 Sustainability
222.70% of the earnings are spent on dividend by CMC. This is not a sustainable payout ratio.
The dividend of CMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP222.7%
EPS Next 2Y1.54%
EPS Next 3Y0.46%
NYSE:CMC (8/6/2025, 10:42:03 AM)
51.83
-0.13 (-0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners93.94%
Inst Owner Change-0.5%
Ins Owners0.57%
Ins Owner Change0.01%
Market Cap5.80B
Analysts72.94
Price Target56.47 (8.95%)
Short Float %3.24%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.68
Dividend Growth(5Y)7.29%
DP222.7%
Div Incr Years4
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.54%
Min EPS beat(2)-14.1%
Max EPS beat(2)-10.99%
EPS beat(4)1
Avg EPS beat(4)-6.91%
Min EPS beat(4)-14.1%
Max EPS beat(4)0.3%
EPS beat(8)3
Avg EPS beat(8)-0.74%
EPS beat(12)7
Avg EPS beat(12)2.67%
EPS beat(16)10
Avg EPS beat(16)6.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-0.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)0.61%
Revenue beat(8)5
Avg Revenue beat(8)0.72%
Revenue beat(12)8
Avg Revenue beat(12)0.94%
Revenue beat(16)10
Avg Revenue beat(16)0.75%
PT rev (1m)6.16%
PT rev (3m)5.58%
EPS NQ rev (1m)5.27%
EPS NQ rev (3m)23.35%
EPS NY rev (1m)8.07%
EPS NY rev (3m)7.48%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 11.35 | ||
| P/S | 0.76 | ||
| P/FCF | 15.42 | ||
| P/OCF | 7.72 | ||
| P/B | 1.42 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)2.68
EY5.17%
EPS(NY)4.57
Fwd EY8.81%
FCF(TTM)3.36
FCFY6.49%
OCF(TTM)6.72
OCFY12.96%
SpS68.62
BVpS36.61
TBVpS31.22
PEG (NY)N/A
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 0.9% | ||
| ROCE | 7.94% | ||
| ROIC | 6.08% | ||
| ROICexc | 7.18% | ||
| ROICexgc | 8.18% | ||
| OM | 6.02% | ||
| PM (TTM) | 0.48% | ||
| GM | 14.98% | ||
| FCFM | 4.9% |
ROA(3y)13.2%
ROA(5y)11.07%
ROE(3y)23.07%
ROE(5y)20.4%
ROIC(3y)15%
ROIC(5y)13.7%
ROICexc(3y)17.18%
ROICexc(5y)15.83%
ROICexgc(3y)19.56%
ROICexgc(5y)17.4%
ROCE(3y)19.6%
ROCE(5y)17.94%
ROICexcg growth 3Y-7.72%
ROICexcg growth 5Y2.01%
ROICexc growth 3Y-10.89%
ROICexc growth 5Y-0.05%
OM growth 3Y-1.14%
OM growth 5Y5.51%
PM growth 3Y-0.05%
PM growth 5Y12.5%
GM growth 3Y1.42%
GM growth 5Y4.5%
F-Score4
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 131.44% | ||
| Cap/Sales | 4.89% | ||
| Interest Coverage | 9.05 | ||
| Cash Conversion | 100.54% | ||
| Profit Quality | 1022.25% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 3.77 |
F-Score4
WACC9.08%
ROIC/WACC0.67
Cap/Depr(3y)216.7%
Cap/Depr(5y)174.63%
Cap/Sales(3y)5.34%
Cap/Sales(5y)4.44%
Profit Quality(3y)74.95%
Profit Quality(5y)90.31%
High Growth Momentum
Growth
EPS 1Y (TTM)-48.66%
EPS 3Y7.76%
EPS 5Y16.44%
EPS Q2Q%-27.45%
EPS Next Y-27.84%
EPS Next 2Y1.54%
EPS Next 3Y0.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.6%
Revenue growth 5Y6.34%
Sales Q2Q%-2.81%
Revenue Next Year-1.97%
Revenue Next 2Y2.98%
Revenue Next 3Y3.9%
Revenue Next 5YN/A
EBIT growth 1Y-41.41%
EBIT growth 3Y4.4%
EBIT growth 5Y12.2%
EBIT Next Year16.5%
EBIT Next 3Y13.35%
EBIT Next 5Y8%
FCF growth 1Y-52.84%
FCF growth 3Y135.07%
FCF growth 5YN/A
OCF growth 1Y-46.05%
OCF growth 3Y57.91%
OCF growth 5Y89.31%