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%)
Taking everything into account, CMC scores 5 out of 10 in our fundamental rating. CMC was compared to 155 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. CMC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CMC was profitable.
CMC had a positive operating cash flow in the past year.
In the past 5 years CMC has always been profitable.
Each year in the past 5 years CMC had a positive operating cash flow.
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.
CMC's Return On Equity of 2.02% is in line compared to the rest of the industry. CMC outperforms 59.35% of its industry peers.
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 13.15%.
| 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
Looking at the Profit Margin, with a value of 1.09%, CMC is in line with its industry, outperforming 59.35% of the companies in the same industry.
In the last couple of years the Profit Margin of CMC has declined.
Looking at the Operating Margin, with a value of 6.67%, CMC is in line with its industry, outperforming 59.35% of the companies in the same industry.
CMC's Operating Margin has declined in the last couple of years.
The Gross Margin of CMC (15.65%) is comparable to the rest of the 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
CMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CMC has less shares outstanding
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
An Altman-Z score of 4.18 indicates that CMC is not in any danger for bankruptcy at the moment.
CMC has a Altman-Z score of 4.18. This is comparable to the rest of the industry: CMC outperforms 58.06% of its industry peers.
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.
The Debt to FCF ratio of CMC (4.34) is better than 70.97% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that CMC is not too dependend on debt financing.
The Debt to Equity ratio of CMC (0.31) is worse than 65.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.18 |
ROIC/WACC0.68
WACC10.03%
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.
The Current ratio of CMC (2.78) is comparable to the rest of the industry.
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.
CMC shows a decrease in Revenue. In the last year, the revenue decreased by -1.61%.
Measured over the past years, CMC shows a small growth in Revenue. The Revenue has been growing by 7.33% on average per year.
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
CMC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.80% yearly.
Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 5.86% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.40, CMC is valued on the expensive side.
Based on the Price/Earnings ratio, CMC is valued a bit cheaper than 78.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, CMC is valued at the same level.
With a Price/Forward Earnings ratio of 11.61, the valuation of CMC can be described as very reasonable.
CMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CMC is cheaper than 78.06% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. CMC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 11.61 |
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 75.48% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CMC is valued cheaper than 81.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.09 | ||
| EV/EBITDA | 10.22 |
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.
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
CMC has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.50, CMC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, CMC pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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 their dividend for at least 10 years, which is a reliable track record.
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 | 1.1% |
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)40.86%
EPS NY rev (1m)3.61%
EPS NY rev (3m)31.7%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)3.36%
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 | 10.22 |
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 | 4.18 |
F-Score4
WACC10.03%
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.