COMMERCIAL METALS CO (CMC) Fundamental Analysis & Valuation

NYSE:CMC • US2017231034

Current stock price

61.43 USD
+1.34 (+2.23%)
At close:
61.43 USD
0 (0%)
After Hours:

This CMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. CMC Profitability Analysis

1.1 Basic Checks

  • In the past year CMC was profitable.
  • In the past year CMC had a positive cash flow from operations.
  • In the past 5 years CMC has always been profitable.
  • Each year in the past 5 years CMC had a positive operating cash flow.
CMC Yearly Net Income VS EBIT VS OCF VS FCFCMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.28%, CMC is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
  • CMC has a Return On Equity of 11.47%. This is in the better half of the industry: CMC outperforms 74.68% of its industry peers.
  • CMC's Return On Invested Capital of 6.66% is fine compared to the rest of the industry. CMC outperforms 63.92% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CMC is significantly below the industry average of 61.56%.
Industry RankSector Rank
ROA 5.28%
ROE 11.47%
ROIC 6.66%
ROA(3y)7.08%
ROA(5y)9.93%
ROE(3y)11.39%
ROE(5y)17.84%
ROIC(3y)10.48%
ROIC(5y)13.05%
CMC Yearly ROA, ROE, ROICCMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 6.02%, CMC is in the better half of the industry, outperforming 70.25% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CMC has declined.
  • CMC has a better Operating Margin (8.40%) than 63.29% of its industry peers.
  • CMC's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 17.74%, CMC perfoms like the industry average, outperforming 55.06% of the companies in the same industry.
  • CMC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 8.4%
PM (TTM) 6.02%
GM 17.74%
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%
CMC Yearly Profit, Operating, Gross MarginsCMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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5

2. CMC Health Analysis

2.1 Basic Checks

  • CMC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • CMC has less shares outstanding than it did 1 year ago.
  • CMC has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CMC is higher compared to a year ago.
CMC Yearly Shares OutstandingCMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
CMC Yearly Total Debt VS Total AssetsCMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 2.83 indicates that CMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • CMC has a Altman-Z score (2.83) which is comparable to the rest of the industry.
  • CMC has a debt to FCF ratio of 8.54. This is a slightly negative value and a sign of low solvency as CMC would need 8.54 years to pay back of all of its debts.
  • CMC has a better Debt to FCF ratio (8.54) than 65.19% of its industry peers.
  • CMC has a Debt/Equity ratio of 0.75. This is a neutral value indicating CMC is somewhat dependend on debt financing.
  • CMC has a worse Debt to Equity ratio (0.75) than 79.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 8.54
Altman-Z 2.83
ROIC/WACC0.53
WACC12.64%
CMC Yearly LT Debt VS Equity VS FCFCMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 2.38 indicates that CMC has no problem at all paying its short term obligations.
  • CMC has a Current ratio of 2.38. This is comparable to the rest of the industry: CMC outperforms 49.37% of its industry peers.
  • A Quick Ratio of 1.55 indicates that CMC should not have too much problems paying its short term obligations.
  • CMC has a Quick ratio of 1.55. This is comparable to the rest of the industry: CMC outperforms 50.63% of its industry peers.
Industry RankSector Rank
Current Ratio 2.38
Quick Ratio 1.55
CMC Yearly Current Assets VS Current LiabilitesCMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. CMC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 72.64% over the past year.
  • 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 grown by 8.38% in the past year. This is quite good.
  • CMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.33% yearly.
EPS 1Y (TTM)72.64%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%346.15%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%21.53%

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 24.03% on average per year.
  • Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 7.82% on average per year.
EPS Next Y135.53%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
EPS Next 5Y24.03%
Revenue Next Year17.59%
Revenue Next 2Y12.14%
Revenue Next 3Y7.82%
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.
CMC Yearly Revenue VS EstimatesCMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
CMC Yearly EPS VS EstimatesCMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

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8

4. CMC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.02, the valuation of CMC can be described as correct.
  • Based on the Price/Earnings ratio, CMC is valued cheaper than 93.04% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.35. CMC is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 8.20 indicates a reasonable valuation of CMC.
  • Based on the Price/Forward Earnings ratio, CMC is valued cheaply inside the industry as 82.91% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.61, CMC is valued rather cheaply.
Industry RankSector Rank
PE 12.02
Fwd PE 8.2
CMC Price Earnings VS Forward Price EarningsCMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than 77.22% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 89.24% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.31
EV/EBITDA 9.31
CMC Per share dataCMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
  • CMC's earnings are expected to grow with 29.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)3.34
EPS Next 2Y54.2%
EPS Next 3Y29.81%

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7

5. CMC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.37%, CMC has a reasonable but not impressive dividend return.
  • CMC's Dividend Yield is a higher than the industry average which is at 1.21.
  • Compared to the average S&P500 Dividend Yield of 1.89, CMC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.37%

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
CMC Yearly Dividends per shareCMC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • CMC pays out 15.92% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of CMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.92%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
CMC Yearly Income VS Free CF VS DividendCMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B
CMC Dividend Payout.CMC Dividend Payout, showing the Payout Ratio.CMC Dividend Payout.PayoutRetained Earnings

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CMC Fundamentals: All Metrics, Ratios and Statistics

COMMERCIAL METALS CO

NYSE:CMC (3/31/2026, 7:00:00 PM)

After market: 61.43 0 (0%)

61.43

+1.34 (+2.23%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)03-26
Earnings (Next)06-22
Inst Owners93.65%
Inst Owner Change-1.2%
Ins Owners0.57%
Ins Owner Change3.02%
Market Cap6.81B
Revenue(TTM)8.39B
Net Income(TTM)505.22M
Analysts77.65
Price Target83.28 (35.57%)
Short Float %4.5%
Short Ratio3.81
Dividend
Industry RankSector Rank
Dividend Yield 1.37%
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP15.92%
Div Incr Years4
Div Non Decr Years13
Ex-Date01-16
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.67%
Min EPS beat(2)-13.36%
Max EPS beat(2)16.7%
EPS beat(4)1
Avg EPS beat(4)-2.81%
Min EPS beat(4)-14.1%
Max EPS beat(4)16.7%
EPS beat(8)2
Avg EPS beat(8)-3.11%
EPS beat(12)5
Avg EPS beat(12)0.89%
EPS beat(16)9
Avg EPS beat(16)4.11%
Revenue beat(2)2
Avg Revenue beat(2)1.42%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.89%
Revenue beat(4)3
Avg Revenue beat(4)0.27%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)1.89%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)9
Avg Revenue beat(12)1.05%
Revenue beat(16)12
Avg Revenue beat(16)1.14%
PT rev (1m)1.74%
PT rev (3m)16.45%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)4.24%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)17.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)4.67%
Valuation
Industry RankSector Rank
PE 12.02
Fwd PE 8.2
P/S 0.81
P/FCF 17.31
P/OCF 8.11
P/B 1.55
P/tB 3.84
EV/EBITDA 9.31
EPS(TTM)5.11
EY8.32%
EPS(NY)7.49
Fwd EY12.19%
FCF(TTM)3.55
FCFY5.78%
OCF(TTM)7.57
OCFY12.33%
SpS75.62
BVpS39.73
TBVpS16.01
PEG (NY)0.09
PEG (5Y)3.34
Graham Number67.58
Profitability
Industry RankSector Rank
ROA 5.28%
ROE 11.47%
ROCE 8.59%
ROIC 6.66%
ROICexc 7.09%
ROICexgc 10.78%
OM 8.4%
PM (TTM) 6.02%
GM 17.74%
FCFM 4.69%
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-Score6
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 8.54
Debt/EBITDA 3.23
Cap/Depr 139.47%
Cap/Sales 5.32%
Interest Coverage 250
Cash Conversion 82.01%
Profit Quality 77.9%
Current Ratio 2.38
Quick Ratio 1.55
Altman-Z 2.83
F-Score6
WACC12.64%
ROIC/WACC0.53
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)72.64%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%346.15%
EPS Next Y135.53%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
EPS Next 5Y24.03%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%21.53%
Revenue Next Year17.59%
Revenue Next 2Y12.14%
Revenue Next 3Y7.82%
Revenue Next 5YN/A
EBIT growth 1Y37.97%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year158.42%
EBIT Next 3Y40.1%
EBIT Next 5Y30.38%
FCF growth 1Y-40.1%
FCF growth 3Y7.65%
FCF growth 5Y-12.35%
OCF growth 1Y-26%
OCF growth 3Y0.7%
OCF growth 5Y-2%

COMMERCIAL METALS CO / CMC Fundamental Analysis 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.


How profitable is COMMERCIAL METALS CO (CMC) stock?

COMMERCIAL METALS CO (CMC) has a profitability rating of 5 / 10.


What is the valuation of COMMERCIAL METALS CO based on its PE and PB ratios?

The Price/Earnings (PE) ratio for COMMERCIAL METALS CO (CMC) is 12.02 and the Price/Book (PB) ratio is 1.55.


What is the financial health of COMMERCIAL METALS CO (CMC) stock?

The financial health rating of COMMERCIAL METALS CO (CMC) is 5 / 10.