COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
74.42 USD
-1.38 (-1.82%)
74.42 USD
0 (0%)
CMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. This makes CMC very considerable for value investing!
1. Profitability
1.1 Basic Checks
- CMC had positive earnings in the past year.
- 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 better Return On Assets (4.74%) than 74.36% of its industry peers.
- CMC has a Return On Equity of 10.15%. This is in the better half of the industry: CMC outperforms 75.64% of its industry peers.
- The Return On Invested Capital of CMC (5.82%) is better than 64.74% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CMC is in line with the industry average of 10.26%.
- The last Return On Invested Capital (5.82%) for CMC is well below the 3 year average (10.48%), which needs to be investigated, but indicates that CMC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 10.15% | ||
| ROIC | 5.82% |
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 5.46%, CMC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- In the last couple of years the Profit Margin of CMC has declined.
- CMC has a Operating Margin of 7.51%. This is in the better half of the industry: CMC outperforms 61.54% of its industry peers.
- CMC's Operating Margin has declined in the last couple of years.
- CMC has a Gross Margin (16.47%) 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 | 7.51% | ||
| PM (TTM) | 5.46% | ||
| GM | 16.47% |
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.
- The number of shares outstanding for CMC has been reduced compared to 1 year ago.
- Compared to 5 years ago, CMC has less shares outstanding
- CMC has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.35 indicates that CMC is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.35, CMC is in line with its industry, outperforming 47.44% of the companies in the same industry.
- The Debt to FCF ratio of CMC is 11.32, which is on the high side as it means it would take CMC, 11.32 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CMC (11.32) is better than 60.26% of its industry peers.
- CMC has a Debt/Equity ratio of 0.77. This is a neutral value indicating CMC is somewhat dependend on debt financing.
- CMC's Debt to Equity ratio of 0.77 is on the low side compared to the rest of the industry. CMC is outperformed by 80.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 11.32 | ||
| Altman-Z | 3.35 |
ROIC/WACC0.58
WACC10.1%
2.3 Liquidity
- A Current Ratio of 4.47 indicates that CMC has no problem at all paying its short term obligations.
- CMC has a Current ratio of 4.47. This is in the better half of the industry: CMC outperforms 77.56% of its industry peers.
- A Quick Ratio of 3.70 indicates that CMC has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.70, CMC is in the better half of the industry, outperforming 73.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.7 |
3. Growth
3.1 Past
- CMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.60%, which is quite good.
- 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 small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
- CMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.33% yearly.
EPS 1Y (TTM)17.6%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%135.9%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
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 23.29% on average per year.
- Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 7.33% on average per year.
EPS Next Y100.29%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
EPS Next 5YN/A
Revenue Next Year15.86%
Revenue Next 2Y11.27%
Revenue Next 3Y7.33%
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
- The Price/Earnings ratio is 17.68, which indicates a rather expensive current valuation of CMC.
- Based on the Price/Earnings ratio, CMC is valued cheaper than 90.38% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. CMC is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 11.90, the valuation of CMC can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 81.41% of the companies listed in the same industry.
- CMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than 74.36% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.9 | ||
| EV/EBITDA | 11.91 |
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.
- The decent profitability rating of CMC may justify a higher PE ratio.
- CMC's earnings are expected to grow with 23.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)4.92
EPS Next 2Y40.91%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.95%, CMC is not a good candidate for dividend investing.
- CMC's Dividend Yield is a higher than the industry average which is at 0.96.
- Compared to an average S&P500 Dividend Yield of 1.85, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
- The dividend of CMC is nicely growing with an annual growth rate of 8.46%!
- CMC has paid a dividend for at least 10 years, which is 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
- 18.48% of the earnings are spent on dividend by CMC. This is a low number and sustainable payout ratio.
- The dividend of CMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.48%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
74.42
-1.38 (-1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)01-08 2026-01-08/bmo
Earnings (Next)03-18 2026-03-18/bmo
Inst Owners95.09%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner Change3.65%
Market Cap8.26B
Revenue(TTM)8.01B
Net Income(TTM)437.66M
Analysts76.47
Price Target79.82 (7.26%)
Short Float %4.15%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP18.48%
Div Incr Years4
Div Non Decr Years13
Ex-Date01-16 2026-01-16 (0.18)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.11%
Min EPS beat(2)-0.47%
Max EPS beat(2)16.7%
EPS beat(4)1
Avg EPS beat(4)-2.22%
Min EPS beat(4)-14.1%
Max EPS beat(4)16.7%
EPS beat(8)3
Avg EPS beat(8)0.67%
EPS beat(12)6
Avg EPS beat(12)2.16%
EPS beat(16)10
Avg EPS beat(16)5.84%
Revenue beat(2)2
Avg Revenue beat(2)1.17%
Min Revenue beat(2)0.45%
Max Revenue beat(2)1.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)1.89%
Revenue beat(8)5
Avg Revenue beat(8)0.34%
Revenue beat(12)9
Avg Revenue beat(12)1.1%
Revenue beat(16)12
Avg Revenue beat(16)1.28%
PT rev (1m)15.34%
PT rev (3m)28.02%
EPS NQ rev (1m)11.11%
EPS NQ rev (3m)69.52%
EPS NY rev (1m)3.78%
EPS NY rev (3m)31.56%
Revenue NQ rev (1m)3.59%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)3.58%
Revenue NY rev (3m)7.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 11.9 | ||
| P/S | 1.03 | ||
| P/FCF | 27.9 | ||
| P/OCF | 11.7 | ||
| P/B | 1.92 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)4.21
EY5.66%
EPS(NY)6.25
Fwd EY8.4%
FCF(TTM)2.67
FCFY3.58%
OCF(TTM)6.36
OCFY8.55%
SpS72.12
BVpS38.83
TBVpS33.56
PEG (NY)0.18
PEG (5Y)4.92
Graham Number60.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 10.15% | ||
| ROCE | 7.51% | ||
| ROIC | 5.82% | ||
| ROICexc | 6.67% | ||
| ROICexgc | 7.28% | ||
| OM | 7.51% | ||
| PM (TTM) | 5.46% | ||
| GM | 16.47% | ||
| FCFM | 3.7% |
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-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 11.32 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 142.31% | ||
| Cap/Sales | 5.12% | ||
| Interest Coverage | 11.07 | ||
| Cash Conversion | 79.39% | ||
| Profit Quality | 67.67% | ||
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.7 | ||
| Altman-Z | 3.35 |
F-Score7
WACC10.1%
ROIC/WACC0.58
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)17.6%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%135.9%
EPS Next Y100.29%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
EPS Next 5YN/A
Revenue 1Y (TTM)2.26%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
Revenue Next Year15.86%
Revenue Next 2Y11.27%
Revenue Next 3Y7.33%
Revenue Next 5YN/A
EBIT growth 1Y2.43%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year133.16%
EBIT Next 3Y35.61%
EBIT Next 5Y30.53%
FCF growth 1Y-57.21%
FCF growth 3Y7.65%
FCF growth 5Y-12.35%
OCF growth 1Y-42.71%
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 6 / 10 to CMC.
What is the valuation status for CMC stock?
ChartMill assigns a valuation rating of 8 / 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 6 / 10.
Can you provide the PE and PB ratios for CMC stock?
The Price/Earnings (PE) ratio for COMMERCIAL METALS CO (CMC) is 17.68 and the Price/Book (PB) ratio is 1.92.
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.