COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
NYSE:CMC - US2017231034 - Common Stock
57.57 USD
-0.45 (-0.78%)
57.5711 USD
0 (0%)
Taking everything into account, CMC scores 6 out of 10 in our fundamental rating. CMC was compared to 155 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
Looking at the Return On Assets, with a value of 0.53%, CMC is in line with its industry, outperforming 58.06% of the companies in the same industry.
CMC has a Return On Equity of 0.90%. This is comparable to the rest of the industry: CMC outperforms 58.71% of its industry peers.
CMC's Return On Invested Capital of 6.08% is fine compared to the rest of the industry. CMC outperforms 67.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMC is above the industry average of 12.86%.
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
With a Profit Margin value of 0.48%, CMC perfoms like the industry average, outperforming 57.42% of the companies in the same industry.
CMC's Profit Margin has improved in the last couple of years.
CMC has a Operating Margin (6.02%) which is comparable to the rest of the industry.
CMC's Operating Margin has improved in the last couple of years.
CMC's Gross Margin of 14.98% is in line compared to the rest of the industry. CMC outperforms 51.61% of its industry peers.
In the last couple of years the Gross Margin of CMC has grown nicely.
| 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
CMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CMC has been reduced compared to 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
An Altman-Z score of 3.90 indicates that CMC is not in any danger for bankruptcy at the moment.
CMC's Altman-Z score of 3.90 is fine compared to the rest of the industry. CMC outperforms 65.16% 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.
CMC has a better Debt to FCF ratio (3.57) than 72.26% 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.
Looking at the Debt to Equity ratio, with a value of 0.32, CMC is doing worse than 62.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.62
WACC9.77%
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.
The Current ratio of CMC (2.86) is better than 60.65% of its industry peers.
CMC has a Quick Ratio of 2.00. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC has a Quick ratio of 2.00. This is comparable to the rest of the industry: CMC outperforms 59.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The earnings per share for CMC have decreased strongly by -48.66% in the last year.
The Earnings Per Share has been growing by 16.44% on average over the past years. This is quite good.
Looking at the last year, CMC shows a decrease in Revenue. The Revenue has decreased by -5.64% in the last year.
CMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.34% yearly.
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 0.63% on average over the next years.
The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y-28.26%
EPS Next 2Y2.08%
EPS Next 3Y0.63%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y2.94%
Revenue Next 3Y3.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 21.48 indicates a rather expensive valuation of CMC.
Compared to the rest of the industry, the Price/Earnings ratio of CMC indicates a somewhat cheap valuation: CMC is cheaper than 77.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CMC to the average of the S&P500 Index (27.08), we can say CMC is valued slightly cheaper.
CMC is valuated correctly with a Price/Forward Earnings ratio of 12.47.
72.90% of the companies in the same industry are more expensive than CMC, based on the Price/Forward Earnings ratio.
CMC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
CMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CMC is cheaper than 74.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CMC is valued cheaper than 85.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.12 | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
The decent profitability rating of CMC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y2.08%
EPS Next 3Y0.63%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.28%. 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 2.60.
With a Dividend Yield of 1.28, CMC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of CMC grows each year by 7.29%, which is quite nice.
CMC has paid a dividend for at least 10 years, which is 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)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%
57.57
-0.45 (-0.78%)
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 Cap6.44B
Analysts71.25
Price Target57.86 (0.5%)
Short Float %2.41%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)2.46%
PT rev (3m)8.74%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)23.26%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)7.5%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 12.47 | ||
| P/S | 0.84 | ||
| P/FCF | 17.12 | ||
| P/OCF | 8.57 | ||
| P/B | 1.57 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)2.68
EY4.66%
EPS(NY)4.62
Fwd EY8.02%
FCF(TTM)3.36
FCFY5.84%
OCF(TTM)6.72
OCFY11.67%
SpS68.62
BVpS36.61
TBVpS31.22
PEG (NY)N/A
PEG (5Y)1.31
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
WACC9.77%
ROIC/WACC0.62
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%
Revenue Next 2Y2.94%
Revenue Next 3Y3.61%
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%