COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CMC • US2017231034
76.87 USD
-1.09 (-1.4%)
At close: Jan 30, 2026
75.6 USD
-1.27 (-1.65%)
After Hours: 1/30/2026, 8:04:00 PM
Overall CMC gets a fundamental rating of 6 out of 10. We evaluated CMC against 157 industry peers in the Metals & Mining industry. Both the profitability and the financial health of CMC get a neutral evaluation. Nothing too spectacular is happening here. CMC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make CMC suitable for value investing!
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.
- Each year in the past 5 years CMC has been profitable.
- In the past 5 years CMC always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 4.74%, CMC is doing good in the industry, outperforming 73.89% of the companies in the same industry.
- The Return On Equity of CMC (10.15%) is better than 75.16% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.82%, CMC is in the better half of the industry, outperforming 64.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CMC is in line with the industry average of 10.48%.
- The 3 year average ROIC (10.48%) for CMC is well above the current ROIC(5.82%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 10.15% | ||
| ROIC | 5.82% |
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
- The Profit Margin of CMC (5.46%) is better than 68.79% of its industry peers.
- In the last couple of years the Profit Margin of CMC has declined.
- CMC has a better Operating Margin (7.51%) than 61.15% of its industry peers.
- In the last couple of years the Operating Margin of CMC has declined.
- With a Gross Margin value of 16.47%, CMC perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
- CMC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.51% | ||
| PM (TTM) | 5.46% | ||
| GM | 16.47% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CMC is still creating some value.
- CMC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CMC has less shares outstanding
- The debt/assets ratio for CMC is higher compared to a year ago.
2.2 Solvency
- CMC has an Altman-Z score of 3.38. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
- CMC's Altman-Z score of 3.38 is in line compared to the rest of the industry. CMC outperforms 47.13% of its industry peers.
- The Debt to FCF ratio of CMC is 11.32, which is on the high side as it means it would take CMC, 11.32 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 11.32, CMC is doing good in the industry, outperforming 60.51% of the companies in the same industry.
- A Debt/Equity ratio of 0.77 indicates that CMC is somewhat dependend on debt financing.
- CMC has a worse Debt to Equity ratio (0.77) than 80.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 11.32 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.56
WACC10.38%
2.3 Liquidity
- A Current Ratio of 4.47 indicates that CMC has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 4.47, CMC is in the better half of the industry, outperforming 77.71% of the companies in the same industry.
- A Quick Ratio of 3.70 indicates that CMC has no problem at all paying its short term obligations.
- CMC has a Quick ratio of 3.70. This is in the better half of the industry: CMC outperforms 73.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.7 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.60% over the past year.
- Measured over the past 5 years, CMC shows a small growth in Earnings Per Share. The EPS has been growing by 3.60% on average per year.
- The Revenue has been growing slightly by 2.26% in the past year.
- The Revenue has been growing slightly by 7.33% on average over the past years.
EPS 1Y (TTM)17.6%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%135.9%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
3.2 Future
- Based on estimates for the next years, CMC will show a very strong growth in Earnings Per Share. The EPS will grow by 29.81% on average per year.
- CMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.16% yearly.
EPS Next Y137.75%
EPS Next 2Y53.42%
EPS Next 3Y29.81%
EPS Next 5YN/A
Revenue Next Year16.56%
Revenue Next 2Y11.51%
Revenue Next 3Y7.16%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.26, CMC is valued on the expensive side.
- Based on the Price/Earnings ratio, CMC is valued cheaper than 90.45% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. CMC is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 10.37, the valuation of CMC can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 85.99% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than the industry average as 73.25% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CMC is valued cheaper than 82.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.82 | ||
| EV/EBITDA | 12.21 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CMC has a very decent profitability rating, which may justify a higher PE ratio.
- CMC's earnings are expected to grow with 29.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)5.08
EPS Next 2Y53.42%
EPS Next 3Y29.81%
5. Dividend
5.1 Amount
- CMC has a yearly dividend return of 0.92%, which is pretty low.
- CMC's Dividend Yield is a higher than the industry average which is at 1.02.
- With a Dividend Yield of 0.92, CMC pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
- The dividend of CMC is nicely growing with an annual growth rate of 8.46%!
- 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
- 18.48% of the earnings are spent on dividend by CMC. This is a low number and sustainable payout ratio.
- CMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.48%
EPS Next 2Y53.42%
EPS Next 3Y29.81%
COMMERCIAL METALS CO / CMC FAQ
What is the fundamental rating for CMC stock?
ChartMill assigns a fundamental rating of 6 / 10 to CMC.
What is the valuation status for CMC stock?
ChartMill assigns a valuation rating of 8 / 10 to COMMERCIAL METALS CO (CMC). This can be considered as Undervalued.
What is the profitability of CMC stock?
COMMERCIAL METALS CO (CMC) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CMC stock?
The Price/Earnings (PE) ratio for COMMERCIAL METALS CO (CMC) is 18.26 and the Price/Book (PB) ratio is 1.98.
What is the expected EPS growth for COMMERCIAL METALS CO (CMC) stock?
The Earnings per Share (EPS) of COMMERCIAL METALS CO (CMC) is expected to grow by 137.75% in the next year.