COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - NYSE:CMC - US2017231034 - Common Stock
57.075 USD
+1.73 (+3.12%)
Overall CMC gets a fundamental rating of 6 out of 10. We evaluated CMC against 156 industry peers in the Metals & Mining industry. CMC scores excellent on profitability, but there are some minor concerns on its financial health. CMC is valued quite cheap, but it does not seem to be growing. This makes CMC very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year CMC was profitable.
CMC had a positive operating cash flow in the past year.
Of the past 5 years CMC 4 years were profitable.
CMC had a positive operating cash flow in 4 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.
With a decent Return On Equity value of 0.90%, CMC is doing good in the industry, outperforming 60.26% of the companies in the same industry.
CMC has a Return On Invested Capital of 6.08%. This is in the better half 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 12.18%.
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 58.97% 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 in line with its industry peers.
CMC's Operating Margin has improved in the last couple of years.
CMC has a Gross Margin (14.98%) which is in line with 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMC is creating some value.
There is no outstanding debt for CMC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CMC has an Altman-Z score of 3.85. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC has a Altman-Z score of 3.85. This is comparable to the rest of the industry: CMC outperforms 53.21% 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.
With a decent Debt to FCF ratio value of 3.57, CMC is doing good in the industry, outperforming 73.08% of the companies in the same industry.
CMC has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
CMC has a worse Debt to Equity ratio (0.32) than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.66
WACC9.17%
2.3 Liquidity
A Current Ratio of 2.86 indicates that CMC has no problem at all paying its short term obligations.
CMC has a Current ratio (2.86) which is comparable to the rest of the industry.
A Quick Ratio of 2.00 indicates that CMC has no problem at all paying its short term obligations.
CMC's Quick ratio of 2.00 is in line compared to the rest of the industry. CMC outperforms 57.69% of its industry peers.
| 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 -28.89%.
CMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.60% yearly.
EPS 1Y (TTM)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.93%
3.2 Future
CMC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.48% yearly.
The Revenue is expected to grow by 5.92% on average over the next years.
EPS Next Y52.24%
EPS Next 2Y23.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.23%
Revenue Next 2Y5.92%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.12 indicates a rather expensive valuation of CMC.
Based on the Price/Earnings ratio, CMC is valued cheaper than 87.18% of the companies in the same industry.
CMC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.90, the valuation of CMC can be described as reasonable.
Based on the Price/Forward Earnings ratio, CMC is valued cheaper than 80.77% of the companies in the same industry.
CMC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMC is valued cheaply inside the industry as 82.69% 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 89.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.98 | ||
| EV/EBITDA | 8.89 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CMC's earnings are expected to grow with 23.48% in the coming years.
PEG (NY)0.35
PEG (5Y)5.04
EPS Next 2Y23.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.41, CMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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
CMC pays out 222.70% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP222.7%
EPS Next 2Y23.48%
EPS Next 3YN/A
NYSE:CMC (10/17/2025, 1:57:50 PM)
57.075
+1.73 (+3.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-0.04%
Ins Owners0.58%
Ins Owner Change0.06%
Market Cap6.39B
Analysts71.76
Price Target62.35 (9.24%)
Short Float %3.19%
Short Ratio3.75
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)5.89%
PT rev (3m)17.21%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 11.9 | ||
| P/S | 0.83 | ||
| P/FCF | 16.98 | ||
| P/OCF | 8.5 | ||
| P/B | 1.56 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)3.15
EY5.52%
EPS(NY)4.8
Fwd EY8.4%
FCF(TTM)3.36
FCFY5.89%
OCF(TTM)6.72
OCFY11.77%
SpS68.62
BVpS36.61
TBVpS31.22
PEG (NY)0.35
PEG (5Y)5.04
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 | 3.85 |
F-Score4
WACC9.17%
ROIC/WACC0.66
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)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
EPS Next Y52.24%
EPS Next 2Y23.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.93%
Revenue Next Year8.23%
Revenue Next 2Y5.92%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-41.41%
EBIT growth 3Y4.4%
EBIT growth 5Y12.2%
EBIT Next Year19%
EBIT Next 3Y14.84%
EBIT Next 5Y11.68%
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%