COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
70.56 USD
-0.8 (-1.12%)
70.56 USD
0 (0%)
Overall CMC gets a fundamental rating of 5 out of 10. We evaluated CMC against 156 industry peers in the Metals & Mining industry. CMC has an average financial health and profitability rating. CMC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CMC was profitable.
In the past year CMC had a positive cash flow from operations.
CMC had positive earnings in each of the past 5 years.
CMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CMC has a Return On Assets of 1.18%. This is comparable to the rest of the industry: CMC outperforms 59.35% of its industry peers.
With a Return On Equity value of 2.02%, CMC perfoms like the industry average, outperforming 59.35% of the companies in the same industry.
CMC has a better Return On Invested Capital (6.82%) than 66.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMC is below the industry average of 13.23%.
| 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
CMC has a Profit Margin (1.09%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CMC has declined.
With a Operating Margin value of 6.67%, CMC perfoms like the industry average, outperforming 59.35% of the companies in the same industry.
In the last couple of years the Operating Margin of CMC has declined.
Looking at the Gross Margin, with a value of 15.65%, CMC is in line with its industry, outperforming 49.68% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMC 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 4.16. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC has a Altman-Z score (4.16) which is comparable to the rest of the industry.
The Debt to FCF ratio of CMC is 4.34, which is a neutral value as it means it would take CMC, 4.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.34, CMC is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
CMC has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
CMC's Debt to Equity ratio of 0.31 is on the low side compared to the rest of the industry. CMC is outperformed by 65.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.16 |
ROIC/WACC0.68
WACC10.07%
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.
CMC has a Current ratio (2.78) which is in line with its industry peers.
A Quick Ratio of 2.03 indicates that CMC has no problem at all paying its short term obligations.
With a Quick ratio value of 2.03, CMC perfoms like the industry average, outperforming 55.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 |
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.
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)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
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 21.80% on average per year.
CMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y93%
EPS Next 2Y37.19%
EPS Next 3Y21.8%
EPS Next 5YN/A
Revenue Next Year11.85%
Revenue Next 2Y9.25%
Revenue Next 3Y5.86%
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
A Price/Earnings ratio of 22.40 indicates a rather expensive valuation of CMC.
Based on the Price/Earnings ratio, CMC is valued a bit cheaper than the industry average as 78.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.56. CMC is around the same levels.
CMC is valuated reasonably with a Price/Forward Earnings ratio of 11.61.
Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
CMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than the industry average as 74.84% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 80.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.09 | ||
| EV/EBITDA | 10.11 |
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.
A more expensive valuation may be justified as CMC's earnings are expected to grow with 21.80% in the coming years.
PEG (NY)0.24
PEG (5Y)6.23
EPS Next 2Y37.19%
EPS Next 3Y21.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, CMC has a reasonable but not impressive dividend return.
CMC's Dividend Yield is a higher than the industry average which is at 1.03.
With a Dividend Yield of 1.01, CMC pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
96.19% of the earnings are spent on dividend by CMC. 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 2Y37.19%
EPS Next 3Y21.8%
70.56
-0.8 (-1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.15%
Inst Owner Change-0.39%
Ins Owners0.57%
Ins Owner Change3.15%
Market Cap7.84B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target69.2 (-1.93%)
Short Float %3.94%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)1.88%
EPS beat(16)10
Avg EPS beat(16)6.69%
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)4.04%
PT rev (3m)17.52%
EPS NQ rev (1m)2.29%
EPS NQ rev (3m)34.21%
EPS NY rev (1m)3.61%
EPS NY rev (3m)31.7%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 11.61 | ||
| P/S | 1 | ||
| P/FCF | 25.09 | ||
| P/OCF | 10.96 | ||
| P/B | 1.87 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 10.11 |
EPS(TTM)3.15
EY4.46%
EPS(NY)6.08
Fwd EY8.62%
FCF(TTM)2.81
FCFY3.98%
OCF(TTM)6.44
OCFY9.13%
SpS70.22
BVpS37.76
TBVpS32.38
PEG (NY)0.24
PEG (5Y)6.23
Graham Number51.73
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 | 4.16 |
F-Score4
WACC10.07%
ROIC/WACC0.68
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)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
EPS Next Y93%
EPS Next 2Y37.19%
EPS Next 3Y21.8%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
Revenue Next Year11.85%
Revenue Next 2Y9.25%
Revenue Next 3Y5.86%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year127.32%
EBIT Next 3Y34.71%
EBIT Next 5Y29.99%
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 5 / 10 to CMC.
What is the valuation status of COMMERCIAL METALS CO (CMC) stock?
ChartMill assigns a valuation rating of 6 / 10 to COMMERCIAL METALS CO (CMC). This can be considered as Fairly Valued.
What is the profitability of CMC stock?
COMMERCIAL METALS CO (CMC) has a profitability rating of 4 / 10.
How financially healthy is COMMERCIAL METALS CO?
The financial health rating of COMMERCIAL METALS CO (CMC) is 6 / 10.
Can you provide the expected EPS growth for CMC stock?
The Earnings per Share (EPS) of COMMERCIAL METALS CO (CMC) is expected to grow by 93% in the next year.