COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
71.24 USD
+0.5 (+0.71%)
71.24 USD
0 (0%)
CMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CMC.
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.
In the past 5 years CMC has always been profitable.
In the past 5 years CMC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.18%, CMC is in line with its industry, outperforming 58.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.02%, CMC is in line with its industry, outperforming 58.97% of the companies in the same industry.
CMC has a better Return On Invested Capital (6.82%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMC is below the industry average of 13.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 2.02% | ||
| ROIC | 6.82% |
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
CMC has a Profit Margin of 1.09%. This is comparable to the rest of the industry: CMC outperforms 58.97% of its industry peers.
CMC's Profit Margin has declined in the last couple of years.
CMC has a Operating Margin (6.67%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CMC has declined.
Looking at the Gross Margin, with a value of 15.65%, CMC is in line with its industry, outperforming 49.36% of the companies in the same industry.
In the last couple of years the Gross Margin of CMC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.67% | ||
| PM (TTM) | 1.09% | ||
| GM | 15.65% |
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.
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.
The debt/assets ratio for CMC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.17 indicates that CMC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.17, CMC is in line with its industry, outperforming 55.13% of the companies in the same industry.
The Debt to FCF ratio of CMC is 4.34, which is a neutral value as it means it would take CMC, 4.34 years of fcf income to pay off all of its debts.
CMC has a better Debt to FCF ratio (4.34) than 70.51% of its industry peers.
CMC has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
CMC has a Debt to Equity ratio of 0.31. This is in the lower half of the industry: CMC underperforms 66.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.17 |
ROIC/WACC0.69
WACC9.91%
2.3 Liquidity
CMC has a Current Ratio of 2.78. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC's Current ratio of 2.78 is in line compared to the rest of the industry. CMC outperforms 55.13% of its industry peers.
CMC has a Quick Ratio of 2.03. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC has a Quick ratio (2.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
The earnings per share for CMC have decreased strongly by -28.89% in the last year.
CMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.60% yearly.
Looking at the last year, CMC shows a decrease in Revenue. The Revenue has decreased by -1.61% in the last year.
CMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.33% yearly.
EPS 1Y (TTM)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
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 23.29% on average per year.
CMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y100.29%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
EPS Next 5YN/A
Revenue Next Year12.35%
Revenue Next 2Y9.76%
Revenue Next 3Y6.21%
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
CMC is valuated rather expensively with a Price/Earnings ratio of 22.62.
81.41% of the companies in the same industry are more expensive than CMC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CMC to the average of the S&P500 Index (26.92), we can say CMC is valued inline with the index average.
CMC is valuated reasonably with a Price/Forward Earnings ratio of 11.29.
Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
78.21% of the companies in the same industry are more expensive than CMC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 82.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.34 | ||
| EV/EBITDA | 10.2 |
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.
A more expensive valuation may be justified as CMC's earnings are expected to grow with 23.29% in the coming years.
PEG (NY)0.23
PEG (5Y)6.29
EPS Next 2Y40.91%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, CMC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.98, CMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
On average, the dividend of CMC grows each year by 8.46%, which is quite nice.
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
96.19% of the earnings are spent on dividend by CMC. This is not a sustainable payout ratio.
CMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP96.19%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
71.24
+0.5 (+0.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.15%
Inst Owner Change-0.39%
Ins Owners0.57%
Ins Owner Change3.15%
Market Cap7.91B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target71.52 (0.39%)
Short Float %4.27%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP96.19%
Div Incr Years4
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.28%
Min EPS beat(2)-14.1%
Max EPS beat(2)-0.47%
EPS beat(4)0
Avg EPS beat(4)-7.11%
Min EPS beat(4)-14.1%
Max EPS beat(4)-0.47%
EPS beat(8)3
Avg EPS beat(8)-0.01%
EPS beat(12)6
Avg EPS beat(12)1.96%
EPS beat(16)10
Avg EPS beat(16)6.75%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)0.61%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)0.98%
Revenue beat(16)11
Avg Revenue beat(16)0.86%
PT rev (1m)6.78%
PT rev (3m)21.46%
EPS NQ rev (1m)3.08%
EPS NQ rev (3m)37.04%
EPS NY rev (1m)7.53%
EPS NY rev (3m)31.56%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 11.29 | ||
| P/S | 1.01 | ||
| P/FCF | 25.34 | ||
| P/OCF | 11.06 | ||
| P/B | 1.89 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)3.15
EY4.42%
EPS(NY)6.31
Fwd EY8.86%
FCF(TTM)2.81
FCFY3.95%
OCF(TTM)6.44
OCFY9.04%
SpS70.22
BVpS37.76
TBVpS32.38
PEG (NY)0.23
PEG (5Y)6.29
Graham Number51.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 2.02% | ||
| ROCE | 8.79% | ||
| ROIC | 6.82% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 9.44% | ||
| OM | 6.67% | ||
| PM (TTM) | 1.09% | ||
| GM | 15.65% | ||
| FCFM | 4% |
ROA(3y)7.08%
ROA(5y)9.93%
ROE(3y)11.39%
ROE(5y)17.84%
ROIC(3y)10.48%
ROIC(5y)13.05%
ROICexc(3y)12.06%
ROICexc(5y)15.07%
ROICexgc(3y)13.75%
ROICexgc(5y)16.82%
ROCE(3y)13.52%
ROCE(5y)16.85%
ROICexgc growth 3Y-30.12%
ROICexgc growth 5Y-6.95%
ROICexc growth 3Y-30.19%
ROICexc growth 5Y-8.85%
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%
F-Score4
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 140.91% | ||
| Cap/Sales | 5.17% | ||
| Interest Coverage | 10.18 | ||
| Cash Conversion | 88.74% | ||
| Profit Quality | 368.82% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 4.17 |
F-Score4
WACC9.91%
ROIC/WACC0.69
Cap/Depr(3y)177.95%
Cap/Depr(5y)180.18%
Cap/Sales(3y)5.38%
Cap/Sales(5y)4.79%
Profit Quality(3y)191.04%
Profit Quality(5y)120.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
EPS Next Y100.29%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
Revenue Next Year12.35%
Revenue Next 2Y9.76%
Revenue Next 3Y6.21%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year133.16%
EBIT Next 3Y35.61%
EBIT Next 5Y29.99%
FCF growth 1Y-45.74%
FCF growth 3Y7.65%
FCF growth 5Y-12.35%
OCF growth 1Y-20.52%
OCF growth 3Y0.7%
OCF growth 5Y-2%
COMMERCIAL METALS CO / CMC FAQ
What is the fundamental rating for CMC stock?
ChartMill assigns a fundamental rating of 5 / 10 to CMC.
What is the valuation status of COMMERCIAL METALS CO (CMC) stock?
ChartMill assigns a valuation rating of 7 / 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 4 / 10.
How financially healthy is COMMERCIAL METALS CO?
The financial health rating of COMMERCIAL METALS CO (CMC) is 6 / 10.
Can you provide the expected EPS growth for CMC stock?
The Earnings per Share (EPS) of COMMERCIAL METALS CO (CMC) is expected to grow by 100.29% in the next year.