COMMERCIAL METALS CO (CMC)

US2017231034 - Common Stock

54.57  -0.23 (-0.42%)

After market: 54.57 0 (0%)

Fundamental Rating

7

Overall CMC gets a fundamental rating of 7 out of 10. We evaluated CMC against 156 industry peers in the Metals & Mining industry. CMC gets an excellent profitability rating and is at the same time showing great financial health properties. CMC is cheap, but on the other hand it scores bad on growth. This makes CMC very considerable for value investing!



8

1. Profitability

1.1 Basic Checks

In the past year CMC was profitable.
CMC had a positive operating cash flow in the past year.
In the past 5 years CMC has always been profitable.
CMC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of CMC (11.56%) is better than 91.03% of its industry peers.
Looking at the Return On Equity, with a value of 18.31%, CMC belongs to the top of the industry, outperforming 87.82% of the companies in the same industry.
CMC has a Return On Invested Capital of 13.99%. This is amongst the best in the industry. CMC outperforms 90.38% of its industry peers.
CMC had an Average Return On Invested Capital over the past 3 years of 16.68%. This is significantly above the industry average of 8.81%.
Industry RankSector Rank
ROA 11.56%
ROE 18.31%
ROIC 13.99%
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 9.03% is fine compared to the rest of the industry. CMC outperforms 78.21% of its industry peers.
CMC's Profit Margin has improved in the last couple of years.
CMC has a better Operating Margin (12.28%) than 69.23% of its industry peers.
In the last couple of years the Operating Margin of CMC has grown nicely.
CMC's Gross Margin of 19.98% is in line compared to the rest of the industry. CMC outperforms 58.33% of its industry peers.
In the last couple of years the Gross Margin of CMC has grown nicely.
Industry RankSector Rank
OM 12.28%
PM (TTM) 9.03%
GM 19.98%
OM growth 3Y15.32%
OM growth 5Y22.05%
PM growth 3Y24.17%
PM growth 5Y26.79%
GM growth 3Y6.08%
GM growth 5Y8.73%

9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CMC is creating value.
CMC has less shares outstanding than it did 1 year ago.
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

An Altman-Z score of 4.68 indicates that CMC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.68, CMC is doing good in the industry, outperforming 73.08% of the companies in the same industry.
CMC has a debt to FCF ratio of 1.67. This is a very positive value and a sign of high solvency as it would only need 1.67 years to pay back of all of its debts.
CMC has a better Debt to FCF ratio (1.67) than 86.54% of its industry peers.
CMC has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CMC (0.26) is worse than 60.26% 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 RankSector Rank
Debt/Equity 0.26
Debt/FCF 1.67
Altman-Z 4.68
ROIC/WACC1.74
WACC8.04%

2.3 Liquidity

CMC has a Current Ratio of 4.12. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CMC (4.12) is better than 72.44% of its industry peers.
A Quick Ratio of 2.81 indicates that CMC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.81, CMC is in the better half of the industry, outperforming 68.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.12
Quick Ratio 2.81

3

3. Growth

3.1 Past

The earnings per share for CMC have decreased strongly by -23.22% in the last year.
CMC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.92% yearly.
The Revenue has decreased by -6.37% in the past year.
The Revenue has been growing by 13.64% on average over the past years. This is quite good.
EPS 1Y (TTM)-23.22%
EPS 3Y40.93%
EPS 5Y40.92%
EPS growth Q2Q-27.23%
Revenue 1Y (TTM)-6.37%
Revenue growth 3Y17.13%
Revenue growth 5Y13.64%
Revenue growth Q2Q-10.07%

3.2 Future

CMC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.31% yearly.
Based on estimates for the next years, CMC will show a decrease in Revenue. The Revenue will decrease by -2.69% on average per year.
EPS Next Y-31.05%
EPS Next 2Y-20.71%
EPS Next 3Y-16.31%
EPS Next 5YN/A
Revenue Next Year-6.71%
Revenue Next 2Y-3.9%
Revenue Next 3Y-2.69%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.05, the valuation of CMC can be described as reasonable.
Based on the Price/Earnings ratio, CMC is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
CMC is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.75, which indicates a very decent valuation of CMC.
73.08% of the companies in the same industry are more expensive than CMC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CMC to the average of the S&P500 Index (21.57), we can say CMC is valued slightly cheaper.
Industry RankSector Rank
PE 8.05
Fwd PE 11.75

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 83.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CMC is valued cheaper than 90.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.18
EV/EBITDA 5.29

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 -16.31% in the coming years.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-20.71%
EPS Next 3Y-16.31%

5

5. Dividend

5.1 Amount

CMC has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
CMC's Dividend Yield is a higher than the industry average which is at 3.28.
With a Dividend Yield of 1.19, CMC pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 1.19%

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

9.67% of the earnings are spent on dividend by CMC. This is a low number and sustainable payout ratio.
DP9.67%
EPS Next 2Y-20.71%
EPS Next 3Y-16.31%

COMMERCIAL METALS CO

NYSE:CMC (2/27/2024, 4:29:09 PM)

After market: 54.57 0 (0%)

54.57

-0.23 (-0.42%)

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 Cap6.35B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.19%
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min 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 RankSector Rank
PE 8.05
Fwd PE 11.75
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)0.2
Profitability
Industry RankSector Rank
ROA 11.56%
ROE 18.31%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.28%
PM (TTM) 9.03%
GM 19.98%
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 Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 4.12
Quick Ratio 2.81
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)
Growth
EPS 1Y (TTM)-23.22%
EPS 3Y40.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y-31.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.37%
Revenue growth 3Y17.13%
Revenue growth 5Y
Revenue growth 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