COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
66.86 USD
+1.63 (+2.5%)
66.96 USD
+0.1 (+0.15%)
CMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. CMC has only an average score on both its financial health and profitability. CMC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CMC was profitable.
CMC had a positive operating cash flow in the past year.
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 (1.18%) which is in line with its industry peers.
CMC has a Return On Equity (2.02%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.82%, CMC is in the better half of the industry, outperforming 67.10% of the companies in the same industry.
CMC had an Average Return On Invested Capital over the past 3 years of 10.48%. This 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
The Profit Margin of CMC (1.09%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CMC has declined.
CMC has a Operating Margin of 6.67%. This is comparable to the rest of the industry: CMC outperforms 59.35% of its industry peers.
CMC's Operating Margin has declined in the last couple of years.
CMC has a Gross Margin (15.65%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CMC has declined.
| 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.
Compared to 1 year ago, CMC has less shares outstanding
CMC has less shares outstanding than it did 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 4.08. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC has a Altman-Z score of 4.08. 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.
With a decent Debt to FCF ratio value of 4.34, CMC is doing good in the industry, outperforming 71.61% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that CMC is not too dependend on debt financing.
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 | 4.08 |
ROIC/WACC0.72
WACC9.52%
2.3 Liquidity
A Current Ratio of 2.78 indicates that CMC has no problem at all paying its short term obligations.
CMC has a Current ratio of 2.78. This is comparable to the rest of the industry: CMC outperforms 55.48% of its industry peers.
CMC has a Quick Ratio of 2.03. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.03, CMC is in line with its industry, 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
The earnings per share for CMC have decreased strongly by -28.89% in the last year.
The Earnings Per Share has been growing slightly by 3.60% on average over the past years.
Looking at the last year, CMC shows a decrease in Revenue. The Revenue has decreased by -1.61% in the last year.
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
The Earnings Per Share is expected to grow by 21.80% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.86% on average over the next years.
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
A Price/Earnings ratio of 21.23 indicates a rather expensive valuation of CMC.
Compared to the rest of the industry, the Price/Earnings ratio of CMC indicates a somewhat cheap valuation: CMC is cheaper than 79.35% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CMC to the average of the S&P500 Index (26.49), we can say CMC is valued inline with the index average.
CMC is valuated reasonably with a Price/Forward Earnings ratio of 11.00.
CMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CMC is cheaper than 79.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CMC to the average of the S&P500 Index (23.69), we can say CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 11 |
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 76.13% of the companies listed in the same industry.
CMC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CMC is cheaper than 81.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.78 | ||
| EV/EBITDA | 9.6 |
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)0.23
PEG (5Y)5.9
EPS Next 2Y37.19%
EPS Next 3Y21.8%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.10%.
Compared to an average industry Dividend Yield of 2.54, CMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of CMC grows each year by 8.46%, which is quite nice.
CMC has paid a dividend for at least 10 years, which is 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.
The dividend of CMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP96.19%
EPS Next 2Y37.19%
EPS Next 3Y21.8%
66.86
+1.63 (+2.5%)
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 Cap7.42B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target69.2 (3.5%)
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 | 21.23 | ||
| Fwd PE | 11 | ||
| P/S | 0.95 | ||
| P/FCF | 23.78 | ||
| P/OCF | 10.38 | ||
| P/B | 1.77 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)3.15
EY4.71%
EPS(NY)6.08
Fwd EY9.09%
FCF(TTM)2.81
FCFY4.21%
OCF(TTM)6.44
OCFY9.63%
SpS70.22
BVpS37.76
TBVpS32.38
PEG (NY)0.23
PEG (5Y)5.9
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 | 4.08 |
F-Score4
WACC9.52%
ROIC/WACC0.72
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.