COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - NYSE:CMC - US2017231034 - Common Stock
57.01 USD
-0.51 (-0.89%)
57.01 USD
0 (0%)
Taking everything into account, CMC scores 6 out of 10 in our fundamental rating. CMC was compared to 156 industry peers in the Metals & Mining industry. CMC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CMC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CMC had positive earnings in the past year.
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.
CMC's Return On Equity of 0.90% is fine compared to the rest of the industry. CMC outperforms 60.26% of its industry peers.
CMC's Return On Invested Capital of 6.08% is fine compared to the rest of the industry. CMC outperforms 67.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMC is above the industry average of 12.88%.
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
CMC has a Profit Margin (0.48%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CMC has grown nicely.
The Operating Margin of CMC (6.02%) is comparable to the rest of the industry.
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%
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.
The number of shares outstanding for CMC has been reduced compared to 1 year ago.
The number of shares outstanding for CMC has been reduced compared to 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 3.90. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC's Altman-Z score of 3.90 is in line compared to the rest of the industry. CMC outperforms 59.62% 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.
The Debt to FCF ratio of CMC (3.57) is better than 73.72% 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 62.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.68
WACC9%
2.3 Liquidity
CMC has a Current Ratio of 2.86. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC's Current ratio of 2.86 is fine compared to the rest of the industry. CMC outperforms 60.26% 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 Quick ratio value of 2.00, CMC perfoms like the industry average, outperforming 58.97% 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%.
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
Based on estimates for the next years, CMC will show a small growth in Earnings Per Share. The EPS will grow by 0.63% on average per year.
Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y-28.26%
EPS Next 2Y2.08%
EPS Next 3Y0.63%
EPS Next 5YN/A
Revenue Next Year-2.01%
Revenue Next 2Y2.97%
Revenue Next 3Y3.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.27 indicates a rather expensive valuation of CMC.
CMC's Price/Earnings ratio is rather cheap when compared to the industry. CMC is cheaper than 80.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. CMC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.35, which indicates a correct valuation of CMC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CMC indicates a somewhat cheap valuation: CMC is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. CMC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than the industry average as 77.56% 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 87.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.96 | ||
| EV/EBITDA | 9.21 |
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)1.29
EPS Next 2Y2.08%
EPS Next 3Y0.63%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.21%.
CMC's Dividend Yield is a higher than the industry average which is at 2.51.
With a Dividend Yield of 1.21, CMC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of CMC is nicely growing with an annual growth rate of 7.29%!
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
222.70% of the earnings are spent on dividend by CMC. This is not a sustainable payout ratio.
CMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP222.7%
EPS Next 2Y2.08%
EPS Next 3Y0.63%
57.01
-0.51 (-0.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners94.88%
Inst Owner Change-1.09%
Ins Owners0.58%
Ins Owner Change0.01%
Market Cap6.38B
Analysts71.76
Price Target58.88 (3.28%)
Short Float %2.87%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)4.27%
PT rev (3m)10.69%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)23.48%
EPS NY rev (1m)0%
EPS NY rev (3m)7.45%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 12.35 | ||
| P/S | 0.83 | ||
| P/FCF | 16.96 | ||
| P/OCF | 8.49 | ||
| P/B | 1.56 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 9.21 |
EPS(TTM)2.68
EY4.7%
EPS(NY)4.62
Fwd EY8.1%
FCF(TTM)3.36
FCFY5.9%
OCF(TTM)6.72
OCFY11.78%
SpS68.62
BVpS36.61
TBVpS31.22
PEG (NY)N/A
PEG (5Y)1.29
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 | 3.9 |
F-Score4
WACC9%
ROIC/WACC0.68
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-28.26%
EPS Next 2Y2.08%
EPS Next 3Y0.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.6%
Revenue growth 5Y6.34%
Sales Q2Q%-2.81%
Revenue Next Year-2.01%
Revenue Next 2Y2.97%
Revenue Next 3Y3.37%
Revenue Next 5YN/A
EBIT growth 1Y-41.41%
EBIT growth 3Y4.4%
EBIT growth 5Y12.2%
EBIT Next Year18.66%
EBIT Next 3Y13.57%
EBIT Next 5Y7.43%
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%