COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
71.71 USD
+2.49 (+3.6%)
Taking everything into account, CMC scores 5 out of 10 in our fundamental rating. CMC was compared to 156 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.
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.
In the past 5 years CMC always reported a positive cash flow from operatings.
1.2 Ratios
CMC's Return On Assets of 1.18% is in line compared to the rest of the industry. CMC outperforms 59.62% of its industry peers.
CMC has a Return On Equity (2.02%) which is in line with its industry peers.
CMC's Return On Invested Capital of 6.82% is fine compared to the rest of the industry. CMC outperforms 66.67% of its industry peers.
CMC had an Average Return On Invested Capital over the past 3 years of 10.48%. This is below the industry average of 13.25%.
| 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.
CMC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.67%, CMC is in line with its industry, outperforming 58.97% 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.
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
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
Compared to 1 year ago, CMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.13 indicates that CMC is not in any danger for bankruptcy at the moment.
The Altman-Z score of CMC (4.13) 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.
CMC's Debt to FCF ratio of 4.34 is fine compared to the rest of the industry. CMC outperforms 71.15% of its industry peers.
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 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.13 |
ROIC/WACC0.69
WACC9.91%
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.
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.
With a Quick ratio value of 2.03, CMC perfoms like the industry average, outperforming 56.41% 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
The Earnings Per Share is expected to grow by 23.29% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.21% on average over the next years.
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.
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 22.77, CMC is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 80.77% of the companies listed in the same industry.
CMC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 11.37 indicates a reasonable valuation of CMC.
79.49% of the companies in the same industry are more expensive than CMC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
75.64% of the companies in the same industry are more expensive than CMC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 82.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.5 | ||
| EV/EBITDA | 9.93 |
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 23.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)6.33
EPS Next 2Y40.91%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
CMC's Dividend Yield is a higher than the industry average which is at 0.98.
With a Dividend Yield of 1.02, CMC pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 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
CMC pays out 96.19% of its income as dividend. 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 2Y40.91%
EPS Next 3Y23.29%
NYSE:CMC (1/2/2026, 3:21:09 PM)
71.71
+2.49 (+3.6%)
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 Cap7.96B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target71.52 (-0.26%)
Short Float %4.15%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP96.19%
Div Incr Years4
Div Non Decr Years13
Ex-DateN/A
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)1.96%
EPS beat(16)10
Avg EPS beat(16)6.75%
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)6.78%
PT rev (3m)21.46%
EPS NQ rev (1m)3.08%
EPS NQ rev (3m)37.04%
EPS NY rev (1m)7.53%
EPS NY rev (3m)31.56%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 11.37 | ||
| P/S | 1.02 | ||
| P/FCF | 25.5 | ||
| P/OCF | 11.14 | ||
| P/B | 1.9 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)3.15
EY4.39%
EPS(NY)6.31
Fwd EY8.8%
FCF(TTM)2.81
FCFY3.92%
OCF(TTM)6.44
OCFY8.98%
SpS70.22
BVpS37.76
TBVpS32.38
PEG (NY)0.23
PEG (5Y)6.33
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 | 4.13 |
F-Score4
WACC9.91%
ROIC/WACC0.69
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 Y100.29%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
Revenue Next Year12.35%
Revenue Next 2Y9.76%
Revenue Next 3Y6.21%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year133.16%
EBIT Next 3Y35.61%
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 for CMC stock?
ChartMill assigns a valuation rating of 7 / 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 4 / 10.
Can you provide the PE and PB ratios for CMC stock?
The Price/Earnings (PE) ratio for COMMERCIAL METALS CO (CMC) is 22.77 and the Price/Book (PB) ratio is 1.9.
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.