CMC Fundamental Analysis - COMMERCIAL METALS CO

Fundamental Rating

Overall CMC gets a fundamental rating of 6 out of 10. We evaluated CMC against 156 industry peers in the Metals & Mining industry. While CMC has a great profitability rating, there are some minor concerns on its financial health. CMC is valued correctly, but it does not seem to be growing.

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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

The Return On Assets of CMC (0.53%) is better than 60.26% of its industry peers.

The Return On Equity of CMC (0.90%) is better than 60.26% of its industry peers.

With a decent Return On Invested Capital value of 6.08%, CMC is doing good in the industry, outperforming 67.95% of the companies in the same industry.

CMC had an Average Return On Invested Capital over the past 3 years of 15.00%. This is above the industry average of 12.18%.

The 3 year average ROIC (15.00%) for CMC is well above the current ROIC(6.08%). The reason for the recent decline needs to be investigated.

		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

CMC's Profit Margin of 0.48% is in line compared to the rest of the industry. CMC outperforms 58.97% of its industry peers.

In the last couple of years the Profit Margin of CMC has grown nicely.

CMC's Operating Margin of 6.02% is in line compared to the rest of the industry. CMC outperforms 59.62% of its industry peers.

In the last couple of years the Operating Margin of CMC has grown nicely.

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

The number of shares outstanding for CMC has been reduced compared to 1 year ago.

CMC has less shares outstanding than it did 5 years ago.

Compared to 1 year ago, CMC has a worse debt to assets ratio.

2.2 Solvency

CMC has an Altman-Z score of 3.95. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.

CMC has a Altman-Z score of 3.95. This is comparable to the rest of the industry: CMC outperforms 52.56% of its industry peers.

CMC has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as CMC would need 3.57 years to pay back of all of its debts.

CMC has a Debt to FCF ratio of 3.57. This is in the better half of the industry: CMC outperforms 73.08% of its industry peers.

CMC has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.

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 64.10% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.32
Debt/FCF	3.57
Altman-Z	3.95

ROIC/WACC0.66

WACC9.17%

2.3 Liquidity

A Current Ratio of 2.86 indicates that CMC has no problem at all paying its short term obligations.

CMC has a Current ratio (2.86) which is in line with its industry peers.

A Quick Ratio of 2.00 indicates that CMC has no problem at all paying its short term obligations.

CMC has a Quick ratio of 2.00. This is comparable to the rest of the industry: CMC outperforms 57.69% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.86
Quick Ratio	2

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WACC

Debt/Equity

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Altman-Z score

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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%.

The Earnings Per Share has been growing by 16.44% on average over the past years. This is quite good.

The Revenue has decreased by -5.64% in the past year.

Measured over the past years, CMC shows a small growth in Revenue. The Revenue has been growing by 6.34% on average per year.

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

The Earnings Per Share is expected to grow by 2.73% on average over the next years.

The Revenue is expected to grow by 3.18% on average over the next years.

EPS Next Y-28.03%

EPS Next 2Y4.04%

EPS Next 3Y2.73%

EPS Next 5YN/A

Revenue Next Year-2.09%

Revenue Next 2Y2.94%

Revenue Next 3Y3.18%

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 decreasing.

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.

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4. Valuation

4.1 Price/Earnings Ratio

CMC is valuated rather expensively with a Price/Earnings ratio of 20.65.

Compared to the rest of the industry, the Price/Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 80.77% of the companies listed in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 27.31, CMC is valued a bit cheaper.

Based on the Price/Forward Earnings ratio of 11.54, the valuation of CMC can be described as reasonable.

Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than 76.92% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 22.85. CMC is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	20.65
Fwd PE	11.54

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 81.41% of the companies listed in the same industry.

87.82% 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	16.46
EV/EBITDA	9.54

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)1.26

EPS Next 2Y4.04%

EPS Next 3Y2.73%

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5. Dividend

5.1 Amount

CMC has a Yearly Dividend Yield of 1.22%.

Compared to an average industry Dividend Yield of 2.41, CMC pays a bit more dividend than its industry peers.

With a Dividend Yield of 1.22, CMC pays less dividend than the S&P500 average, which is at 2.40.

		Industry Rank	Sector Rank
Dividend Yield	1.22%

5.2 History

On average, the dividend of CMC grows each year by 7.29%, 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 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

CMC pays out 222.70% of its income as dividend. 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 2Y4.04%

EPS Next 3Y2.73%

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COMMERCIAL METALS CO

NYSE:CMC (10/16/2025, 5:38:59 PM)

After market: 55.35 0 (0%)

55.35

-4.33 (-7.26%)

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryMetals & Mining

Earnings (Last)06-23 2025-06-23/bmo

Earnings (Next)10-16 2025-10-16/bmo

Inst Owners94.42%

Inst Owner Change-0.04%

Ins Owners0.58%

Ins Owner Change0.06%

Market Cap6.20B

Analysts71.76

Price Target62.35 (12.65%)

Short Float %3.19%

Short Ratio3.75

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.22%

Yearly Dividend0.68

Dividend Growth(5Y)7.29%

DP222.7%

Div Incr Years4

Div Non Decr Years13

Ex-Date06-30 2025-06-30 (0.18)

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)5.89%

PT rev (3m)17.21%

EPS NQ rev (1m)1.02%

EPS NQ rev (3m)0.99%

EPS NY rev (1m)0.31%

EPS NY rev (3m)-0.26%

Revenue NQ rev (1m)-0.19%

Revenue NQ rev (3m)-0.89%

Revenue NY rev (1m)-0.08%

Revenue NY rev (3m)-0.27%

Valuation

		Industry Rank	Sector Rank
PE	20.65
Fwd PE	11.54
P/S	0.81
P/FCF	16.46
P/OCF	8.24
P/B	1.51
P/tB	1.77
EV/EBITDA	9.54

EPS(TTM)2.68

EY4.84%

EPS(NY)4.8

Fwd EY8.66%

FCF(TTM)3.36

FCFY6.07%

OCF(TTM)6.72

OCFY12.13%

SpS68.62

BVpS36.61

TBVpS31.22

PEG (NY)N/A

PEG (5Y)1.26

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	3.95

F-Score4

WACC9.17%

ROIC/WACC0.66

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-28.03%

EPS Next 2Y4.04%

EPS Next 3Y2.73%

EPS Next 5YN/A

Revenue 1Y (TTM)-5.64%

Revenue growth 3Y5.6%

Revenue growth 5Y6.34%

Sales Q2Q%-2.81%

Revenue Next Year-2.09%

Revenue Next 2Y2.94%

Revenue Next 3Y3.18%

Revenue Next 5YN/A

EBIT growth 1Y-41.41%

EBIT growth 3Y4.4%

EBIT growth 5Y12.2%

EBIT Next Year19%

EBIT Next 3Y14.84%

EBIT Next 5Y11.68%

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%

COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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