COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
72.46 USD
+1.85 (+2.62%)
72.88 USD
+0.42 (+0.58%)
We assign a fundamental rating of 6 out of 10 to CMC. CMC was compared to 157 industry peers in the Metals & Mining industry. CMC has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on CMC. This makes CMC very considerable for value investing!
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.
In the past 5 years CMC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CMC (1.18%) is better than 60.51% of its industry peers.
CMC's Return On Equity of 2.02% is fine compared to the rest of the industry. CMC outperforms 60.51% of its industry peers.
CMC's Return On Invested Capital of 6.82% is fine compared to the rest of the industry. CMC outperforms 66.88% of its industry peers.
CMC had an Average Return On Invested Capital over the past 3 years of 10.48%. This is in line with the industry average of 10.36%.
| 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
Looking at the Profit Margin, with a value of 1.09%, CMC is in line with its industry, outperforming 59.24% of the companies in the same industry.
CMC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.67%, CMC perfoms like the industry average, outperforming 59.87% of the companies in the same industry.
CMC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 15.65%, CMC perfoms like the industry average, outperforming 50.32% of the companies in the same industry.
CMC's Gross Margin has declined in the last couple of years.
| 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
CMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CMC has less shares outstanding
Compared to 5 years ago, CMC has less shares outstanding
CMC has a worse debt/assets ratio than last year.
2.2 Solvency
CMC has an Altman-Z score of 4.20. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC has a Altman-Z score (4.20) which is comparable to the rest of the industry.
CMC has a debt to FCF ratio of 4.34. This is a neutral value as CMC would need 4.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.34, CMC is doing good in the industry, outperforming 71.34% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that CMC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, CMC is not doing good in the industry: 63.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.2 |
ROIC/WACC0.69
WACC9.94%
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.
Looking at the Current ratio, with a value of 2.78, CMC is in line with its industry, outperforming 57.32% of the companies in the same industry.
A Quick Ratio of 2.03 indicates that CMC has no problem at all paying its short term obligations.
CMC has a Quick ratio (2.03) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
CMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.60%, which is quite good.
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 decreased by -1.61% in the past 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)17.6%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%135.9%
Revenue 1Y (TTM)-1.61%
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 23.29% on average per year.
Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 6.21% on average per year.
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
Based on the Price/Earnings ratio of 17.21, the valuation of CMC can be described as rather expensive.
Based on the Price/Earnings ratio, CMC is valued cheaper than 91.08% of the companies in the same industry.
CMC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 11.59 indicates a reasonable valuation of CMC.
Based on the Price/Forward Earnings ratio, CMC is valued cheaply inside the industry as 80.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
75.80% of the companies in the same industry are more expensive than CMC, based on the Enterprise Value to EBITDA ratio.
84.08% of the companies in the same industry are more expensive than CMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.77 | ||
| EV/EBITDA | 10.37 |
4.3 Compensation for Growth
CMC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CMC's earnings are expected to grow with 23.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)4.79
EPS Next 2Y40.91%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.02%.
CMC's Dividend Yield is a higher than the industry average which is at 0.98.
Compared to an average S&P500 Dividend Yield of 1.92, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
CMC pays out 96.19% of its income as dividend. 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%
72.46
+1.85 (+2.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.09%
Inst Owner Change-0.06%
Ins Owners0.57%
Ins Owner Change3.17%
Market Cap8.05B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts76.47
Price Target71.52 (-1.3%)
Short Float %4.15%
Short Ratio4.07
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)3.35%
PT rev (3m)14.71%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)29.04%
EPS NY rev (1m)3.78%
EPS NY rev (3m)31.56%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 11.59 | ||
| P/S | 1.03 | ||
| P/FCF | 25.77 | ||
| P/OCF | 11.25 | ||
| P/B | 1.92 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 10.37 |
EPS(TTM)4.21
EY5.81%
EPS(NY)6.25
Fwd EY8.63%
FCF(TTM)2.81
FCFY3.88%
OCF(TTM)6.44
OCFY8.89%
SpS70.22
BVpS37.76
TBVpS32.38
PEG (NY)0.17
PEG (5Y)4.79
Graham Number59.81
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 | 4.2 |
F-Score4
WACC9.94%
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)17.6%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%135.9%
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%11.03%
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 5Y30.53%
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 6 / 10 to CMC.
What is the valuation status for 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 5 / 10.
Can you provide the PE and PB ratios for CMC stock?
The Price/Earnings (PE) ratio for COMMERCIAL METALS CO (CMC) is 17.21 and the Price/Book (PB) ratio is 1.92.
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 100.29% in the next year.