COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
74.305 USD
+1.32 (+1.8%)
Overall CMC gets a fundamental rating of 6 out of 10. We evaluated CMC against 157 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. This makes CMC very considerable 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.
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
CMC has a better Return On Assets (4.74%) than 73.89% of its industry peers.
CMC has a Return On Equity of 10.15%. This is in the better half of the industry: CMC outperforms 75.16% of its industry peers.
The Return On Invested Capital of CMC (5.82%) is better than 64.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CMC is in line with the industry average of 10.34%.
The last Return On Invested Capital (5.82%) for CMC is well below the 3 year average (10.48%), which needs to be investigated, but indicates that CMC had better years and this may not be a problem.
| 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's Profit Margin of 5.46% is fine compared to the rest of the industry. CMC outperforms 68.79% of its industry peers.
In the last couple of years the Profit Margin of CMC has declined.
Looking at the Operating Margin, with a value of 7.51%, CMC is in the better half of the industry, outperforming 61.15% of the companies in the same industry.
In the last couple of years the Operating Margin of CMC has declined.
With a Gross Margin value of 16.47%, CMC perfoms like the industry average, outperforming 52.23% of the companies in the same industry.
CMC's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CMC is still creating some value.
CMC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CMC has less shares outstanding
The debt/assets ratio for CMC is higher compared to a year ago.
2.2 Solvency
CMC has an Altman-Z score of 3.33. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC has a Altman-Z score of 3.33. This is comparable to the rest of the industry: CMC outperforms 49.04% of its industry peers.
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.
The Debt to FCF ratio of CMC (11.32) is better than 60.51% 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: 80.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 11.32 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.59
WACC9.86%
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 77.71% of its industry peers.
CMC has a Quick Ratio of 3.70. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CMC (3.70) is better than 73.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.7 |
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.
CMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.60% yearly.
The Revenue has been growing slightly by 2.26% 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)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.
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
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
A Price/Earnings ratio of 17.65 indicates a rather expensive valuation of CMC.
91.08% of the companies in the same industry are more expensive than CMC, based on the Price/Earnings ratio.
CMC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
CMC is valuated reasonably with a Price/Forward Earnings ratio of 11.88.
CMC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CMC is cheaper than 81.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. CMC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMC indicates a somewhat cheap valuation: CMC is cheaper than 73.25% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CMC is valued cheaply inside the industry as 82.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.86 | ||
| EV/EBITDA | 11.73 |
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)4.91
EPS Next 2Y40.91%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
CMC has a yearly dividend return of 0.99%, which is pretty low.
CMC's Dividend Yield is a higher than the industry average which is at 0.98.
With a Dividend Yield of 0.99, CMC pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of CMC grows each year by 8.46%, which is quite nice.
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%
NYSE:CMC (1/13/2026, 3:55:01 PM)
74.305
+1.32 (+1.8%)
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 Cap8.25B
Revenue(TTM)8.01B
Net Income(TTM)437.66M
Analysts76.47
Price Target71.52 (-3.75%)
Short Float %4.15%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP18.48%
Div Incr Years4
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.86%
Min EPS beat(2)-0.47%
Max EPS beat(2)16.2%
EPS beat(4)1
Avg EPS beat(4)-2.34%
Min EPS beat(4)-14.1%
Max EPS beat(4)16.2%
EPS beat(8)3
Avg EPS beat(8)0.6%
EPS beat(12)6
Avg EPS beat(12)2.12%
EPS beat(16)10
Avg EPS beat(16)5.81%
Revenue beat(2)2
Avg Revenue beat(2)1.24%
Min Revenue beat(2)0.45%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)2.04%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)9
Avg Revenue beat(12)1.11%
Revenue beat(16)12
Avg Revenue beat(16)1.29%
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 | 17.65 | ||
| Fwd PE | 11.88 | ||
| P/S | 1.03 | ||
| P/FCF | 27.86 | ||
| P/OCF | 11.68 | ||
| P/B | 1.91 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)4.21
EY5.67%
EPS(NY)6.25
Fwd EY8.42%
FCF(TTM)2.67
FCFY3.59%
OCF(TTM)6.36
OCFY8.56%
SpS72.12
BVpS38.83
TBVpS33.56
PEG (NY)0.18
PEG (5Y)4.91
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 | 3.33 |
F-Score7
WACC9.86%
ROIC/WACC0.59
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 Year12.35%
Revenue Next 2Y9.76%
Revenue Next 3Y6.21%
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 17.65 and the Price/Book (PB) ratio is 1.91.
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.