COMMERCIAL METALS CO (CMC)

US2017231034 - Common Stock

60.44  +0.72 (+1.21%)

After market: 60.44 0 (0%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to CMC. CMC was compared to 157 industry peers in the Metals & Mining industry. CMC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CMC has a valuation in line with the averages, but on the other hand it scores bad on growth.



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8

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

Looking at the Return On Assets, with a value of 7.12%, CMC belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.29%, CMC is in the better half of the industry, outperforming 78.98% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.87%, CMC belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CMC is significantly above the industry average of 8.31%.
The last Return On Invested Capital (8.87%) for CMC is well below the 3 year average (15.00%), which needs to be investigated, but indicates that CMC had better years and this may not be a problem.
Industry RankSector Rank
ROA 7.12%
ROE 11.29%
ROIC 8.87%
ROA(3y)13.2%
ROA(5y)11.07%
ROE(3y)23.07%
ROE(5y)20.4%
ROIC(3y)15%
ROIC(5y)13.7%

1.3 Margins

CMC has a better Profit Margin (6.13%) than 73.89% of its industry peers.
CMC's Profit Margin has improved in the last couple of years.
CMC has a better Operating Margin (8.75%) than 63.69% of its industry peers.
In the last couple of years the Operating Margin of CMC has grown nicely.
CMC's Gross Margin of 17.14% is in line compared to the rest of the industry. CMC outperforms 50.96% of its industry peers.
In the last couple of years the Gross Margin of CMC has grown nicely.
Industry RankSector Rank
OM 8.75%
PM (TTM) 6.13%
GM 17.14%
OM growth 3Y-1.14%
OM growth 5Y5.51%
PM growth 3Y-0.05%
PM growth 5Y12.5%
GM growth 3Y1.42%
GM growth 5Y4.5%

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8

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.
CMC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CMC has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 4.50 indicates that CMC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.50, CMC is doing good in the industry, outperforming 69.43% of the companies in the same industry.
CMC has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as CMC would need 2.07 years to pay back of all of its debts.
CMC has a better Debt to FCF ratio (2.07) than 80.25% of its industry peers.
CMC has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, CMC is in line with its industry, outperforming 40.13% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.07
Altman-Z 4.5
ROIC/WACC0.83
WACC10.66%

2.3 Liquidity

CMC has a Current Ratio of 3.94. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC's Current ratio of 3.94 is fine compared to the rest of the industry. CMC outperforms 72.61% of its industry peers.
A Quick Ratio of 2.78 indicates that CMC has no problem at all paying its short term obligations.
CMC has a better Quick ratio (2.78) than 69.43% of its industry peers.
Industry RankSector Rank
Current Ratio 3.94
Quick Ratio 2.78

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3

3. Growth

3.1 Past

CMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.05%.
CMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.44% yearly.
The Revenue has decreased by -9.93% in the past year.
The Revenue has been growing slightly by 6.34% on average over the past years.
EPS 1Y (TTM)-40.05%
EPS 3Y7.76%
EPS 5Y16.44%
EPS Q2Q%-46.75%
Revenue 1Y (TTM)-9.93%
Revenue growth 3Y5.6%
Revenue growth 5Y6.34%
Sales Q2Q%-9.64%

3.2 Future

Based on estimates for the next years, CMC will show a small growth in Earnings Per Share. The EPS will grow by 4.91% on average per year.
The Revenue is expected to grow by 4.82% on average over the next years.
EPS Next Y-9.88%
EPS Next 2Y3.49%
EPS Next 3Y4.91%
EPS Next 5YN/A
Revenue Next Year0.14%
Revenue Next 2Y4.76%
Revenue Next 3Y4.82%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.64 indicates a correct valuation of CMC.
Based on the Price/Earnings ratio, CMC is valued cheaper than 84.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, CMC is valued rather cheaply.
With a Price/Forward Earnings ratio of 15.14, CMC is valued correctly.
Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than the industry average as 66.24% of the companies are valued more expensively.
CMC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.64
Fwd PE 15.14

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than the industry average as 75.16% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 88.53% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.96
EV/EBITDA 7.41

4.3 Compensation for Growth

CMC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y3.49%
EPS Next 3Y4.91%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.21%, CMC has a reasonable but not impressive dividend return.
CMC's Dividend Yield is a higher than the industry average which is at 2.98.
Compared to an average S&P500 Dividend Yield of 2.23, CMC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.21%

5.2 History

The dividend of CMC is nicely growing with an annual growth rate of 7.29%!
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)7.29%
Div Incr Years3
Div Non Decr Years12

5.3 Sustainability

16.24% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.24%
EPS Next 2Y3.49%
EPS Next 3Y4.91%

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COMMERCIAL METALS CO

NYSE:CMC (11/21/2024, 8:20:03 PM)

After market: 60.44 0 (0%)

60.44

+0.72 (+1.21%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.88B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.21%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 13.64
Fwd PE 15.14
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.83
Profitability
Industry RankSector Rank
ROA 7.12%
ROE 11.29%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.75%
PM (TTM) 6.13%
GM 17.14%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.16
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.94
Quick Ratio 2.78
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-40.05%
EPS 3Y7.76%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.93%
Revenue growth 3Y5.6%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y