COMMERCIAL METALS CO (CMC) Fundamental Analysis & Valuation

NYSE:CMC • US2017231034

Current stock price

58.28 USD
-1.2 (-2.02%)
At close:
58.28 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.

6

1. CMC Profitability Analysis

1.1 Basic Checks

  • CMC had positive earnings in the past year.
  • CMC had a positive operating cash flow in the past year.
  • Each year in the past 5 years CMC has 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

  • With a decent Return On Assets value of 4.74%, CMC is doing good in the industry, outperforming 70.44% of the companies in the same industry.
  • CMC's Return On Equity of 10.15% is fine compared to the rest of the industry. CMC outperforms 71.07% of its industry peers.
  • With a decent Return On Invested Capital value of 5.82%, CMC is doing good in the industry, outperforming 61.01% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CMC is significantly below the industry average of 60.43%.
  • The 3 year average ROIC (10.48%) for CMC is well above the current ROIC(5.82%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
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 (5.46%) than 69.18% of its industry peers.
  • In the last couple of years the Profit Margin of CMC has declined.
  • The Operating Margin of CMC (7.51%) is better than 60.38% of its industry peers.
  • CMC's Operating Margin has declined in the last couple of years.
  • The Gross Margin of CMC (16.47%) is comparable to the rest of the industry.
  • CMC's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
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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6

2. CMC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CMC is destroying value.
  • The number of shares outstanding for CMC has been reduced compared to 1 year ago.
  • The number of shares outstanding for CMC has been reduced compared to 5 years ago.
  • Compared to 1 year ago, CMC has a worse debt to assets ratio.
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 3.15 indicates that CMC is not in any danger for bankruptcy at the moment.
  • With a Altman-Z score value of 3.15, CMC perfoms like the industry average, outperforming 50.31% 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.
  • CMC's Debt to FCF ratio of 11.32 is fine compared to the rest of the industry. CMC outperforms 62.89% of its industry peers.
  • A Debt/Equity ratio of 0.77 indicates that CMC is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.77, CMC is doing worse than 79.25% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 11.32
Altman-Z 3.15
ROIC/WACC0.49
WACC11.99%
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 4.47. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Current ratio value of 4.47, CMC is doing good in the industry, outperforming 76.10% of the companies in the same industry.
  • CMC has a Quick Ratio of 3.70. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
  • CMC has a Quick ratio of 3.70. This is in the better half of the industry: CMC outperforms 72.96% of its industry peers.
Industry RankSector Rank
Current Ratio 4.47
Quick Ratio 3.7
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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5

3. CMC Growth Analysis

3.1 Past

  • CMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.64%, which is quite impressive.
  • 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%.
  • The Revenue has been growing slightly by 7.33% on average over the past years.
EPS 1Y (TTM)72.64%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%346.15%
Revenue 1Y (TTM)-1.61%
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 24.03% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 7.82% on average per year.
EPS Next Y135.53%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
EPS Next 5Y24.03%
Revenue Next Year17.59%
Revenue Next 2Y12.14%
Revenue Next 3Y7.82%
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 accelerating.
  • 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.
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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9

4. CMC Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.41, the valuation of CMC can be described as very reasonable.
  • Based on the Price/Earnings ratio, CMC is valued cheaply inside the industry as 91.82% of the companies are valued more expensively.
  • CMC is valuated cheaply when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 7.78, the valuation of CMC can be described as very cheap.
  • CMC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CMC is cheaper than 82.39% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CMC to the average of the S&P500 Index (22.19), we can say CMC is valued rather cheaply.
Industry RankSector Rank
PE 11.41
Fwd PE 7.78
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 the industry average as 73.58% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CMC is valued cheaply inside the industry as 81.13% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 21.83
EV/EBITDA 10.03
CMC Per share dataCMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
  • The decent profitability rating of CMC may justify a higher PE ratio.
  • CMC's earnings are expected to grow with 29.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)3.17
EPS Next 2Y54.2%
EPS Next 3Y29.81%

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7

5. CMC Dividend Analysis

5.1 Amount

  • CMC has a Yearly Dividend Yield of 1.34%.
  • Compared to an average industry Dividend Yield of 1.19, CMC pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.89, CMC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.34%

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
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 18.48% 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.
DP18.48%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
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 (3/27/2026, 8:08:37 PM)

After market: 58.28 0 (0%)

58.28

-1.2 (-2.02%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)03-26
Earnings (Next)06-22
Inst Owners93.65%
Inst Owner Change-1.2%
Ins Owners0.57%
Ins Owner Change3.02%
Market Cap6.46B
Revenue(TTM)7.80B
Net Income(TTM)437.66M
Analysts77.65
Price Target83.28 (42.9%)
Short Float %4.84%
Short Ratio4.17
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP18.48%
Div Incr Years4
Div Non Decr Years13
Ex-Date01-16
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)0%
PT rev (3m)18.29%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)5.44%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)22.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.94%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)5.13%
Valuation
Industry RankSector Rank
PE 11.41
Fwd PE 7.78
P/S 0.81
P/FCF 21.83
P/OCF 9.15
P/B 1.5
P/tB 1.73
EV/EBITDA 10.03
EPS(TTM)5.11
EY8.77%
EPS(NY)7.49
Fwd EY12.85%
FCF(TTM)2.67
FCFY4.58%
OCF(TTM)6.37
OCFY10.93%
SpS72.21
BVpS38.88
TBVpS33.6
PEG (NY)0.08
PEG (5Y)3.17
Graham Number66.86
Profitability
Industry RankSector 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 RankSector 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 3.15
F-Score7
WACC11.99%
ROIC/WACC0.49
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 Y135.53%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
EPS Next 5Y24.03%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%21.53%
Revenue Next Year17.59%
Revenue Next 2Y12.14%
Revenue Next 3Y7.82%
Revenue Next 5YN/A
EBIT growth 1Y2.43%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year158.42%
EBIT Next 3Y40.1%
EBIT Next 5Y30.38%
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 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 9 / 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 11.41 and the Price/Book (PB) ratio is 1.5.


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 135.53% in the next year.