COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
66.76 USD
-0.1 (-0.15%)
67.69 USD
+0.93 (+1.39%)
CMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. CMC has only an average score on both its financial health and profitability. CMC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CMC had positive earnings in the past year.
CMC had a positive operating cash flow in the past year.
CMC had positive earnings in each of the past 5 years.
Each year in the past 5 years CMC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.18%, CMC is in line with its industry, outperforming 59.35% of the companies in the same industry.
The Return On Equity of CMC (2.02%) is comparable to the rest of the industry.
CMC's Return On Invested Capital of 6.82% is fine compared to the rest of the industry. CMC outperforms 66.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CMC is below the industry average of 13.15%.
| 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
CMC has a Profit Margin of 1.09%. This is comparable to the rest of the industry: CMC outperforms 59.35% of its industry peers.
In the last couple of years the Profit Margin of CMC has declined.
Looking at the Operating Margin, with a value of 6.67%, CMC is in line with its industry, outperforming 59.35% of the companies in the same industry.
CMC's Operating Margin has declined in the last couple of years.
The Gross Margin of CMC (15.65%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMC is 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.
The debt/assets ratio for CMC is higher compared to a year ago.
2.2 Solvency
CMC has an Altman-Z score of 4.07. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.07, CMC perfoms like the industry average, outperforming 58.71% of the companies in the same industry.
The Debt to FCF ratio of CMC is 4.34, which is a neutral value as it means it would take CMC, 4.34 years of fcf income to pay off all of its debts.
CMC has a Debt to FCF ratio of 4.34. This is in the better half of the industry: CMC outperforms 70.97% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that CMC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, CMC is not doing good in the industry: 65.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.07 |
ROIC/WACC0.68
WACC10.01%
2.3 Liquidity
CMC has a Current Ratio of 2.78. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC has a Current ratio (2.78) which is comparable to the rest of the industry.
A Quick Ratio of 2.03 indicates that CMC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.03, CMC is in line with its industry, outperforming 55.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
The earnings per share for CMC have decreased strongly by -28.89% in the last year.
The Earnings Per Share has been growing slightly by 3.60% on average over the past years.
The Revenue has decreased by -1.61% in the past year.
The Revenue has been growing slightly by 7.33% on average over the past years.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.80% yearly.
The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y93%
EPS Next 2Y37.19%
EPS Next 3Y21.8%
EPS Next 5YN/A
Revenue Next Year11.85%
Revenue Next 2Y9.25%
Revenue Next 3Y5.86%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.19 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 78.71% of the companies in the same industry.
CMC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.98 indicates a reasonable valuation of CMC.
Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than the industry average as 78.06% of the companies are valued more expensively.
CMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than 76.13% of the companies in the same industry.
CMC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CMC is cheaper than 81.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.74 | ||
| EV/EBITDA | 9.59 |
4.3 Compensation for Growth
CMC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CMC's earnings are expected to grow with 21.80% in the coming years.
PEG (NY)0.23
PEG (5Y)5.89
EPS Next 2Y37.19%
EPS Next 3Y21.8%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.10%.
CMC's Dividend Yield is a higher than the industry average which is at 2.54.
With a Dividend Yield of 1.10, CMC pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of CMC grows each year by 8.46%, which is quite nice.
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)8.46%
Div Incr Years4
Div Non Decr Years13
5.3 Sustainability
CMC pays out 96.19% of its income as dividend. 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 2Y37.19%
EPS Next 3Y21.8%
66.76
-0.1 (-0.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.15%
Inst Owner Change-0.39%
Ins Owners0.57%
Ins Owner Change3.15%
Market Cap7.41B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target69.2 (3.65%)
Short Float %3.94%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)4.04%
PT rev (3m)17.52%
EPS NQ rev (1m)2.29%
EPS NQ rev (3m)40.86%
EPS NY rev (1m)3.61%
EPS NY rev (3m)31.7%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 10.98 | ||
| P/S | 0.95 | ||
| P/FCF | 23.74 | ||
| P/OCF | 10.37 | ||
| P/B | 1.77 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 9.59 |
EPS(TTM)3.15
EY4.72%
EPS(NY)6.08
Fwd EY9.11%
FCF(TTM)2.81
FCFY4.21%
OCF(TTM)6.44
OCFY9.65%
SpS70.22
BVpS37.76
TBVpS32.38
PEG (NY)0.23
PEG (5Y)5.89
Graham Number51.73
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 | 4.07 |
F-Score4
WACC10.01%
ROIC/WACC0.68
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 Y93%
EPS Next 2Y37.19%
EPS Next 3Y21.8%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
Revenue Next Year11.85%
Revenue Next 2Y9.25%
Revenue Next 3Y5.86%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year127.32%
EBIT Next 3Y34.71%
EBIT Next 5Y29.99%
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 6 / 10 to COMMERCIAL METALS CO (CMC). This can be considered as Fairly Valued.
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 93% in the next year.