COMMERCIAL METALS CO (CMC) Fundamental Analysis & Valuation

NYSE:CMC • US2017231034

Current stock price

68.66 USD
-0.3 (-0.44%)
At close:
68.66 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

  • CMC had positive earnings in the past year.
  • In the past year CMC had a positive cash flow from operations.
  • In the past 5 years CMC has always been profitable.
  • CMC had a positive operating cash flow in each of the past 5 years.
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 75.46% of the companies in the same industry.
  • CMC's Return On Equity of 11.47% is fine compared to the rest of the industry. CMC outperforms 74.85% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.66%, CMC is in the better half of the industry, outperforming 63.19% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CMC is significantly below the industry average of 58.77%.
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

  • CMC has a better Profit Margin (6.02%) than 69.94% of its industry peers.
  • In the last couple of years the Profit Margin of CMC has declined.
  • The Operating Margin of CMC (8.40%) is better than 60.74% of its industry peers.
  • In the last couple of years the Operating Margin of CMC has declined.
  • CMC has a Gross Margin (17.74%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of CMC has declined.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CMC is destroying 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.
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 2.94 indicates that CMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of CMC (2.94) is comparable to the rest of the industry.
  • The Debt to FCF ratio of CMC is 8.54, which is on the high side as it means it would take CMC, 8.54 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 8.54, CMC is doing good in the industry, outperforming 63.80% of the companies in the same industry.
  • 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 Debt to Equity ratio of 0.75. This is amonst the worse of the industry: CMC underperforms 82.21% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 8.54
Altman-Z 2.94
ROIC/WACC0.53
WACC12.58%
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

  • CMC has a Current Ratio of 2.38. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of CMC (2.38) is comparable to the rest of the industry.
  • A Quick Ratio of 1.55 indicates that CMC should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.55, CMC perfoms like the industry average, outperforming 50.31% of the companies in the same industry.
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

  • The Earnings Per Share is expected to grow by 22.40% on average over the next years. This is a very strong growth
  • CMC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.13% yearly.
EPS Next Y117.45%
EPS Next 2Y48.46%
EPS Next 3Y29.09%
EPS Next 5Y22.4%
Revenue Next Year18.19%
Revenue Next 2Y12.11%
Revenue Next 3Y8.13%
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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7

4. CMC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.44, the valuation of CMC can be described as correct.
  • CMC's Price/Earnings ratio is rather cheap when compared to the industry. CMC is cheaper than 89.57% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.64, CMC is valued a bit cheaper.
  • CMC is valuated reasonably with a Price/Forward Earnings ratio of 9.89.
  • Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than 78.53% of the companies in the same industry.
  • CMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.44
Fwd PE 9.89
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 73.62% of the companies in the same industry.
  • CMC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CMC is cheaper than 88.34% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.35
EV/EBITDA 10.26
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 29.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)3.74
EPS Next 2Y48.46%
EPS Next 3Y29.09%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. CMC Dividend Analysis

5.1 Amount

  • CMC has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.99, CMC pays a bit more dividend than its industry peers.
  • CMC's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.18%

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 Years5
Div Non Decr Years14
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 2Y48.46%
EPS Next 3Y29.09%
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 (5/1/2026, 8:18:09 PM)

After market: 68.66 0 (0%)

68.66

-0.3 (-0.44%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Industry Strength74.53
Industry Growth60.25
Earnings (Last)03-26
Earnings (Next)06-22
Inst Owners93.99%
Inst Owner Change-0.65%
Ins Owners0.57%
Ins Owner Change-0.39%
Market Cap7.61B
Revenue(TTM)8.39B
Net Income(TTM)505.22M
Analysts77.65
Price Target79.82 (16.25%)
Short Float %5.83%
Short Ratio5.31
Dividend
Industry RankSector Rank
Dividend Yield 1.18%
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP15.92%
Div Incr Years5
Div Non Decr Years14
Ex-Date04-06
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.42%
Min EPS beat(2)-11.86%
Max EPS beat(2)16.7%
EPS beat(4)1
Avg EPS beat(4)-2.43%
Min EPS beat(4)-14.1%
Max EPS beat(4)16.7%
EPS beat(8)2
Avg EPS beat(8)-2.92%
EPS beat(12)5
Avg EPS beat(12)1.01%
EPS beat(16)9
Avg EPS beat(16)4.21%
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)-2.49%
PT rev (3m)0%
EPS NQ rev (1m)-6.87%
EPS NQ rev (3m)-8.74%
EPS NY rev (1m)-7.67%
EPS NY rev (3m)-8.54%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.4%
Valuation
Industry RankSector Rank
PE 13.44
Fwd PE 9.89
P/S 0.91
P/FCF 19.35
P/OCF 9.06
P/B 1.73
P/tB 4.29
EV/EBITDA 10.26
EPS(TTM)5.11
EY7.44%
EPS(NY)6.94
Fwd EY10.11%
FCF(TTM)3.55
FCFY5.17%
OCF(TTM)7.58
OCFY11.03%
SpS75.63
BVpS39.73
TBVpS16.01
PEG (NY)0.11
PEG (5Y)3.74
Graham Number67.5907 (-1.56%)
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 12.9
Cash Conversion 82.01%
Profit Quality 77.9%
Current Ratio 2.38
Quick Ratio 1.55
Altman-Z 2.94
F-Score6
WACC12.58%
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 Y117.45%
EPS Next 2Y48.46%
EPS Next 3Y29.09%
EPS Next 5Y22.4%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%21.53%
Revenue Next Year18.19%
Revenue Next 2Y12.11%
Revenue Next 3Y8.13%
Revenue Next 5YN/A
EBIT growth 1Y37.97%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year158.8%
EBIT Next 3Y40.45%
EBIT Next 5Y30.51%
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 7 / 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 13.44 and the Price/Book (PB) ratio is 1.73.


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

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