COMMERCIAL METALS CO (CMC) Fundamental Analysis & Valuation

NYSE:CMC • US2017231034

Current stock price

61.79 USD
-1.08 (-1.72%)
At close:
61.79 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.

5

1. CMC Profitability Analysis

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.
  • In the past 5 years CMC always reported a positive cash flow from operatings.
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 5.28%, CMC is doing good in the industry, outperforming 74.68% of the companies in the same industry.
  • CMC has a Return On Equity of 11.47%. This is in the better half of the industry: CMC outperforms 74.68% of its industry peers.
  • The Return On Invested Capital of CMC (6.66%) is better than 63.92% of its industry peers.
  • CMC had an Average Return On Invested Capital over the past 3 years of 10.48%. This is significantly below the industry average of 61.56%.
Industry RankSector Rank
ROA 5.28%
ROE 11.47%
ROIC 6.66%
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 (6.02%) than 70.25% of its industry peers.
  • In the last couple of years the Profit Margin of CMC has declined.
  • CMC's Operating Margin of 8.40% is fine compared to the rest of the industry. CMC outperforms 63.29% of its industry peers.
  • CMC's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 17.74%, CMC perfoms like the industry average, outperforming 55.06% of the companies in the same industry.
  • CMC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 8.4%
PM (TTM) 6.02%
GM 17.74%
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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5

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.
  • Compared to 1 year ago, CMC has less shares outstanding
  • CMC has less shares outstanding than it did 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 2.85 indicates that CMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • CMC has a Altman-Z score of 2.85. This is comparable to the rest of the industry: CMC outperforms 43.67% of its industry peers.
  • CMC has a debt to FCF ratio of 8.54. This is a slightly negative value and a sign of low solvency as CMC would need 8.54 years to pay back of all of its debts.
  • CMC has a better Debt to FCF ratio (8.54) than 65.19% of its industry peers.
  • CMC has a Debt/Equity ratio of 0.75. This is a neutral value indicating CMC is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.75, CMC is not doing good in the industry: 79.11% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 8.54
Altman-Z 2.85
ROIC/WACC0.53
WACC12.66%
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

  • A Current Ratio of 2.38 indicates that CMC has no problem at all paying its short term obligations.
  • The Current ratio of CMC (2.38) is comparable to the rest of the industry.
  • CMC has a Quick Ratio of 1.55. This is a normal value and indicates that CMC is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.55, CMC is in line with its industry, outperforming 50.63% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.38
Quick Ratio 1.55
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • Measured over the past 5 years, CMC shows a small growth in Earnings Per Share. The EPS has been growing by 3.60% on average per year.
  • CMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.38%.
  • CMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.33% yearly.
EPS 1Y (TTM)72.64%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%346.15%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%21.53%

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 24.03% on average per year.
  • The Revenue is expected to grow by 8.06% on average over the next years. This is quite good.
EPS Next Y135.53%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
EPS Next 5Y24.03%
Revenue Next Year18.19%
Revenue Next 2Y12.36%
Revenue Next 3Y8.06%
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.
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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8

4. CMC Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.09, CMC is valued correctly.
  • Based on the Price/Earnings ratio, CMC is valued cheaply inside the industry as 93.67% of the companies are valued more expensively.
  • CMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.60.
  • Based on the Price/Forward Earnings ratio of 8.25, the valuation of CMC can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, CMC is valued cheaply inside the industry as 85.44% of the companies are valued more expensively.
  • CMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.84.
Industry RankSector Rank
PE 12.09
Fwd PE 8.25
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 78.48% of the companies are valued more expensively.
  • CMC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CMC is cheaper than 91.14% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.41
EV/EBITDA 9.49
CMC Per share dataCMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
  • A more expensive valuation may be justified as CMC's earnings are expected to grow with 29.81% in the coming years.
PEG (NY)0.09
PEG (5Y)3.36
EPS Next 2Y54.2%
EPS Next 3Y29.81%

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7

5. CMC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.37%, CMC has a reasonable but not impressive dividend return.
  • CMC's Dividend Yield is a higher than the industry average which is at 1.21.
  • CMC's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
Industry RankSector Rank
Dividend Yield 1.37%

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 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
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

  • 15.92% of the earnings are spent on dividend by CMC. This is a low number and sustainable payout ratio.
  • CMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.92%
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 (4/2/2026, 8:15:55 PM)

After market: 61.79 0 (0%)

61.79

-1.08 (-1.72%)

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 Cap6.85B
Revenue(TTM)8.39B
Net Income(TTM)505.22M
Analysts77.65
Price Target83.28 (34.78%)
Short Float %4.5%
Short Ratio3.81
Dividend
Industry RankSector Rank
Dividend Yield 1.37%
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP15.92%
Div Incr Years4
Div Non Decr Years13
Ex-Date04-06
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.42%
Min EPS beat(2)-11.86%
Max EPS beat(2)16.7%
EPS beat(4)1
Avg EPS beat(4)-2.43%
Min EPS beat(4)-14.1%
Max EPS beat(4)16.7%
EPS beat(8)2
Avg EPS beat(8)-2.92%
EPS beat(12)5
Avg EPS beat(12)1.01%
EPS beat(16)9
Avg EPS beat(16)4.21%
Revenue beat(2)2
Avg Revenue beat(2)1.42%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.89%
Revenue beat(4)3
Avg Revenue beat(4)0.27%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)1.89%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)9
Avg Revenue beat(12)1.05%
Revenue beat(16)12
Avg Revenue beat(16)1.14%
PT rev (1m)1.74%
PT rev (3m)16.45%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)4.24%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)17.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)4.67%
Valuation
Industry RankSector Rank
PE 12.09
Fwd PE 8.25
P/S 0.82
P/FCF 17.41
P/OCF 8.16
P/B 1.56
P/tB 3.86
EV/EBITDA 9.49
EPS(TTM)5.11
EY8.27%
EPS(NY)7.49
Fwd EY12.12%
FCF(TTM)3.55
FCFY5.74%
OCF(TTM)7.57
OCFY12.26%
SpS75.62
BVpS39.73
TBVpS16.01
PEG (NY)0.09
PEG (5Y)3.36
Graham Number67.58
Profitability
Industry RankSector Rank
ROA 5.28%
ROE 11.47%
ROCE 8.59%
ROIC 6.66%
ROICexc 7.09%
ROICexgc 10.78%
OM 8.4%
PM (TTM) 6.02%
GM 17.74%
FCFM 4.69%
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-Score6
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 8.54
Debt/EBITDA 3.23
Cap/Depr 139.47%
Cap/Sales 5.32%
Interest Coverage 250
Cash Conversion 82.01%
Profit Quality 77.9%
Current Ratio 2.38
Quick Ratio 1.55
Altman-Z 2.85
F-Score6
WACC12.66%
ROIC/WACC0.53
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)8.38%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%21.53%
Revenue Next Year18.19%
Revenue Next 2Y12.36%
Revenue Next 3Y8.06%
Revenue Next 5YN/A
EBIT growth 1Y37.97%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year158.42%
EBIT Next 3Y40.1%
EBIT Next 5Y30.38%
FCF growth 1Y-40.1%
FCF growth 3Y7.65%
FCF growth 5Y-12.35%
OCF growth 1Y-26%
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 8 / 10 to COMMERCIAL METALS CO (CMC). This can be considered as Undervalued.


How profitable is COMMERCIAL METALS CO (CMC) stock?

COMMERCIAL METALS CO (CMC) has a profitability rating of 5 / 10.


What is the valuation of COMMERCIAL METALS CO based on its PE and PB ratios?

The Price/Earnings (PE) ratio for COMMERCIAL METALS CO (CMC) is 12.09 and the Price/Book (PB) ratio is 1.56.


What is the financial health of COMMERCIAL METALS CO (CMC) stock?

The financial health rating of COMMERCIAL METALS CO (CMC) is 5 / 10.