COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
74.42 USD
-1.38 (-1.82%)
74.42 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CMC. CMC was compared to 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. These ratings could make CMC a good candidate for value investing.
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.
- CMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CMC has a Return On Assets of 4.74%. This is in the better half of the industry: CMC outperforms 74.36% of its industry peers.
- With a decent Return On Equity value of 10.15%, CMC is doing good in the industry, outperforming 75.64% of the companies in the same industry.
- With a decent Return On Invested Capital value of 5.82%, CMC is doing good in the industry, outperforming 64.74% of the companies in the same industry.
- 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 10.34%.
- The 3 year average ROIC (10.48%) for CMC is well above the current ROIC(5.82%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 10.15% | ||
| ROIC | 5.82% |
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 better Profit Margin (5.46%) than 69.23% of its industry peers.
- CMC's Profit Margin has declined in the last couple of years.
- CMC has a Operating Margin of 7.51%. This is in the better half of the industry: CMC outperforms 61.54% of its industry peers.
- CMC's Operating Margin has declined in the last couple of years.
- The Gross Margin of CMC (16.47%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of CMC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.51% | ||
| PM (TTM) | 5.46% | ||
| GM | 16.47% |
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.
- CMC has less shares outstanding than it did 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
- CMC has an Altman-Z score of 3.35. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of CMC (3.35) is comparable to the rest of the industry.
- The Debt to FCF ratio of CMC is 11.32, which is on the high side as it means it would take CMC, 11.32 years of fcf income to pay off all of its debts.
- CMC has a better Debt to FCF ratio (11.32) than 60.26% of its industry peers.
- CMC has a Debt/Equity ratio of 0.77. This is a neutral value indicating CMC is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.77, CMC is not doing good in the industry: 80.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 11.32 | ||
| Altman-Z | 3.35 |
ROIC/WACC0.58
WACC10.1%
2.3 Liquidity
- A Current Ratio of 4.47 indicates that CMC has no problem at all paying its short term obligations.
- CMC's Current ratio of 4.47 is fine compared to the rest of the industry. CMC outperforms 77.56% of its industry peers.
- A Quick Ratio of 3.70 indicates that CMC has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.70, CMC is in the better half of the industry, outperforming 73.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.7 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.60% over the past year.
- CMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.60% yearly.
- CMC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
- 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)2.26%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
3.2 Future
- CMC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.29% yearly.
- The Revenue is expected to grow by 7.33% on average over the next years.
EPS Next Y100.29%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
EPS Next 5YN/A
Revenue Next Year15.86%
Revenue Next 2Y11.27%
Revenue Next 3Y7.33%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 17.68, which indicates a rather expensive current valuation of CMC.
- CMC's Price/Earnings ratio is rather cheap when compared to the industry. CMC is cheaper than 90.38% of the companies in the same industry.
- CMC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 11.90, which indicates a very decent valuation of CMC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 81.41% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than the industry average as 73.72% 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 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.9 | ||
| EV/EBITDA | 11.91 |
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.
- The decent profitability rating of CMC may justify a higher PE ratio.
- CMC's earnings are expected to grow with 23.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)4.92
EPS Next 2Y40.91%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
- CMC has a yearly dividend return of 0.95%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.96, CMC pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.95, CMC pays less dividend than the S&P500 average, which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
- The dividend of CMC is nicely growing with an annual growth rate of 8.46%!
- CMC has been paying a dividend for at least 10 years, so it has 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)8.46%
Div Incr Years4
Div Non Decr Years13
5.3 Sustainability
- 18.48% of the earnings are spent on dividend by CMC. This is a low number and sustainable payout ratio.
- The dividend of CMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.48%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
74.42
-1.38 (-1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)01-08 2026-01-08/bmo
Earnings (Next)03-18 2026-03-18/bmo
Inst Owners95.09%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner Change3.65%
Market Cap8.26B
Revenue(TTM)8.01B
Net Income(TTM)437.66M
Analysts76.47
Price Target79.82 (7.26%)
Short Float %4.15%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP18.48%
Div Incr Years4
Div Non Decr Years13
Ex-Date01-16 2026-01-16 (0.18)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.11%
Min EPS beat(2)-0.47%
Max EPS beat(2)16.7%
EPS beat(4)1
Avg EPS beat(4)-2.22%
Min EPS beat(4)-14.1%
Max EPS beat(4)16.7%
EPS beat(8)3
Avg EPS beat(8)0.67%
EPS beat(12)6
Avg EPS beat(12)2.16%
EPS beat(16)10
Avg EPS beat(16)5.84%
Revenue beat(2)2
Avg Revenue beat(2)1.17%
Min Revenue beat(2)0.45%
Max Revenue beat(2)1.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)1.89%
Revenue beat(8)5
Avg Revenue beat(8)0.34%
Revenue beat(12)9
Avg Revenue beat(12)1.1%
Revenue beat(16)12
Avg Revenue beat(16)1.28%
PT rev (1m)15.34%
PT rev (3m)28.02%
EPS NQ rev (1m)11.11%
EPS NQ rev (3m)69.52%
EPS NY rev (1m)3.78%
EPS NY rev (3m)31.56%
Revenue NQ rev (1m)3.59%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)3.58%
Revenue NY rev (3m)7.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 11.9 | ||
| P/S | 1.03 | ||
| P/FCF | 27.9 | ||
| P/OCF | 11.7 | ||
| P/B | 1.92 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)4.21
EY5.66%
EPS(NY)6.25
Fwd EY8.4%
FCF(TTM)2.67
FCFY3.58%
OCF(TTM)6.36
OCFY8.55%
SpS72.12
BVpS38.83
TBVpS33.56
PEG (NY)0.18
PEG (5Y)4.92
Graham Number60.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 10.15% | ||
| ROCE | 7.51% | ||
| ROIC | 5.82% | ||
| ROICexc | 6.67% | ||
| ROICexgc | 7.28% | ||
| OM | 7.51% | ||
| PM (TTM) | 5.46% | ||
| GM | 16.47% | ||
| FCFM | 3.7% |
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-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 11.32 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 142.31% | ||
| Cap/Sales | 5.12% | ||
| Interest Coverage | 11.07 | ||
| Cash Conversion | 79.39% | ||
| Profit Quality | 67.67% | ||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.7 | ||
| Altman-Z | 3.35 |
F-Score7
WACC10.1%
ROIC/WACC0.58
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)2.26%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
Revenue Next Year15.86%
Revenue Next 2Y11.27%
Revenue Next 3Y7.33%
Revenue Next 5YN/A
EBIT growth 1Y2.43%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year133.16%
EBIT Next 3Y35.61%
EBIT Next 5Y30.53%
FCF growth 1Y-57.21%
FCF growth 3Y7.65%
FCF growth 5Y-12.35%
OCF growth 1Y-42.71%
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 8 / 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 6 / 10.
Can you provide the PE and PB ratios for CMC stock?
The Price/Earnings (PE) ratio for COMMERCIAL METALS CO (CMC) is 17.68 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.