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%)
Overall CMC gets a fundamental rating of 6 out of 10. We evaluated CMC against 157 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. These ratings would make CMC suitable 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.
- In the past 5 years CMC always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.74%, CMC is in the better half of the industry, outperforming 73.89% of the companies in the same industry.
- CMC has a better Return On Equity (10.15%) than 75.16% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.82%, CMC is in the better half of the industry, outperforming 64.33% of the companies in the same industry.
- CMC had an Average Return On Invested Capital over the past 3 years of 10.48%. This is in line with the industry average of 10.34%.
- 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 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
- CMC has a Profit Margin of 5.46%. This is in the better half of the industry: CMC outperforms 68.79% of its industry peers.
- CMC's Profit Margin has declined in the last couple of years.
- The Operating Margin of CMC (7.51%) is better than 61.15% of its industry peers.
- CMC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 16.47%, CMC perfoms like the industry average, outperforming 52.23% of the companies in the same industry.
- CMC's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CMC is still creating some value.
- Compared to 1 year ago, CMC has less shares outstanding
- The number of shares outstanding for CMC has been reduced compared to 5 years ago.
- The debt/assets ratio for CMC is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.37 indicates that CMC is not in any danger for bankruptcy at the moment.
- With a Altman-Z score value of 3.37, CMC perfoms like the industry average, outperforming 49.68% of the companies in the same industry.
- CMC has a debt to FCF ratio of 11.32. This is a negative value and a sign of low solvency as CMC would need 11.32 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 11.32, CMC is in the better half of the industry, outperforming 60.51% of the companies in the same industry.
- A Debt/Equity ratio of 0.77 indicates that CMC is somewhat dependend on debt financing.
- CMC has a worse Debt to Equity ratio (0.77) than 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 11.32 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.59
WACC9.89%
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 77.71% of its industry peers.
- 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 better Quick ratio (3.70) than 73.89% of its industry peers.
| 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.
- 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.
- The Revenue has been growing slightly by 2.26% in the past year.
- 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)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.
- CMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.33% yearly.
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
- A Price/Earnings ratio of 17.68 indicates a rather expensive valuation of CMC.
- 90.45% of the companies in the same industry are more expensive than CMC, based on the Price/Earnings ratio.
- CMC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.90, the valuation of CMC can be described as reasonable.
- CMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CMC is cheaper than 79.62% of the companies in the same industry.
- CMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMC indicates a somewhat cheap valuation: CMC is cheaper than 72.61% of the companies listed in the same industry.
- CMC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CMC is cheaper than 82.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.9 | ||
| EV/EBITDA | 12.08 |
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 has a very decent profitability rating, which 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
- CMC has a yearly dividend return of 0.97%, which is pretty low.
- CMC's Dividend Yield is a higher than the industry average which is at 0.98.
- With a Dividend Yield of 0.97, CMC pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
- The dividend of CMC is nicely growing with an annual growth rate of 8.46%!
- 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 18.48% of its income as dividend. This is a sustainable payout ratio.
- CMC's earnings are growing more than its dividend. This makes the dividend growth 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 Change-0.06%
Ins Owners0.57%
Ins Owner Change3.17%
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 | 0.97% |
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)3.35%
PT rev (3m)14.71%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)29.04%
EPS NY rev (1m)3.78%
EPS NY rev (3m)31.56%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)3.81%
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 | 12.08 |
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 | 3.37 |
F-Score7
WACC9.89%
ROIC/WACC0.59
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.