COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
63.78 USD
-0.1 (-0.16%)
63.78 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CMC. CMC was compared to 154 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. CMC may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year CMC was profitable.
CMC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 1.18%, CMC is in line with its industry, outperforming 59.09% of the companies in the same industry.
CMC has a Return On Equity of 2.02%. This is comparable to the rest of the industry: CMC outperforms 59.09% of its industry peers.
The Return On Invested Capital of CMC (6.82%) is better than 66.88% of its industry peers.
CMC had an Average Return On Invested Capital over the past 3 years of 10.48%. This is below the industry average of 13.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 2.02% | ||
| ROIC | 6.82% |
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 (1.09%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CMC has declined.
CMC's Operating Margin of 6.67% is in line compared to the rest of the industry. CMC outperforms 59.74% of its industry peers.
In the last couple of years the Operating Margin of CMC has declined.
CMC has a Gross Margin of 15.65%. This is comparable to the rest of the industry: CMC outperforms 50.65% of its industry peers.
CMC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.67% | ||
| PM (TTM) | 1.09% | ||
| GM | 15.65% |
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
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 4.01 indicates that CMC is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 4.01, CMC perfoms like the industry average, outperforming 57.79% of the companies in the same industry.
The Debt to FCF ratio of CMC is 4.34, which is a neutral value as it means it would take CMC, 4.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.34, CMC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that CMC is not too dependend on debt financing.
CMC's Debt to Equity ratio of 0.31 is on the low side compared to the rest of the industry. CMC is outperformed by 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.75
WACC9.08%
2.3 Liquidity
CMC has a Current Ratio of 2.78. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC has a Current ratio of 2.78. This is comparable to the rest of the industry: CMC outperforms 55.84% of its industry peers.
A Quick Ratio of 2.03 indicates that CMC has no problem at all paying its short term obligations.
CMC has a Quick ratio of 2.03. This is comparable to the rest of the industry: CMC outperforms 55.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
The earnings per share for CMC have decreased strongly by -28.89% in the last year.
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.
Looking at the last year, CMC shows a decrease in Revenue. The Revenue has decreased by -1.61% in the last 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)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
3.2 Future
CMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.18% yearly.
CMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.32% yearly.
EPS Next Y86.26%
EPS Next 2Y34.24%
EPS Next 3Y19.18%
EPS Next 5YN/A
Revenue Next Year10.98%
Revenue Next 2Y8.39%
Revenue Next 3Y6.32%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.25 indicates a rather expensive valuation of CMC.
Compared to the rest of the industry, the Price/Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 80.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CMC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 10.87, 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 somewhat cheap valuation: CMC is cheaper than 79.87% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CMC to the average of the S&P500 Index (36.59), we can say CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
79.87% of the companies in the same industry are more expensive than CMC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CMC is valued cheaper than 83.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.67 | ||
| EV/EBITDA | 9.17 |
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 19.18% in the coming years.
PEG (NY)0.23
PEG (5Y)5.63
EPS Next 2Y34.24%
EPS Next 3Y19.18%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.13%.
Compared to an average industry Dividend Yield of 2.63, CMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
On average, the dividend of CMC grows each year by 8.46%, which is quite nice.
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 96.19% of its income as dividend. This is not a sustainable payout ratio.
CMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP96.19%
EPS Next 2Y34.24%
EPS Next 3Y19.18%
63.78
-0.1 (-0.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-0.38%
Ins Owners0.58%
Ins Owner Change3.15%
Market Cap7.08B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target66.97 (5%)
Short Float %3.87%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP96.19%
Div Incr Years4
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.28%
Min EPS beat(2)-14.1%
Max EPS beat(2)-0.47%
EPS beat(4)0
Avg EPS beat(4)-7.11%
Min EPS beat(4)-14.1%
Max EPS beat(4)-0.47%
EPS beat(8)3
Avg EPS beat(8)-0.01%
EPS beat(12)6
Avg EPS beat(12)1.88%
EPS beat(16)10
Avg EPS beat(16)6.69%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)0.61%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)0.98%
Revenue beat(16)11
Avg Revenue beat(16)0.86%
PT rev (1m)7.42%
PT rev (3m)15.75%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)34.89%
EPS NY rev (1m)4.93%
EPS NY rev (3m)27.1%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 10.87 | ||
| P/S | 0.91 | ||
| P/FCF | 22.67 | ||
| P/OCF | 9.9 | ||
| P/B | 1.69 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 9.17 |
EPS(TTM)3.15
EY4.94%
EPS(NY)5.87
Fwd EY9.2%
FCF(TTM)2.81
FCFY4.41%
OCF(TTM)6.44
OCFY10.1%
SpS70.28
BVpS37.79
TBVpS32.4
PEG (NY)0.23
PEG (5Y)5.63
Graham Number51.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.18% | ||
| ROE | 2.02% | ||
| ROCE | 8.79% | ||
| ROIC | 6.82% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 9.44% | ||
| OM | 6.67% | ||
| PM (TTM) | 1.09% | ||
| GM | 15.65% | ||
| FCFM | 4% |
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-Score4
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 140.91% | ||
| Cap/Sales | 5.17% | ||
| Interest Coverage | 10.18 | ||
| Cash Conversion | 88.74% | ||
| Profit Quality | 368.82% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 4.01 |
F-Score4
WACC9.08%
ROIC/WACC0.75
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)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
EPS Next Y86.26%
EPS Next 2Y34.24%
EPS Next 3Y19.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
Revenue Next Year10.98%
Revenue Next 2Y8.39%
Revenue Next 3Y6.32%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year98.29%
EBIT Next 3Y35.77%
EBIT Next 5Y29.96%
FCF growth 1Y-45.74%
FCF growth 3Y7.65%
FCF growth 5Y-12.35%
OCF growth 1Y-20.52%
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 5 / 10 to CMC.
What is the valuation status of COMMERCIAL METALS CO (CMC) stock?
ChartMill assigns a valuation rating of 7 / 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 4 / 10.
How financially healthy is COMMERCIAL METALS CO?
The financial health rating of COMMERCIAL METALS CO (CMC) is 6 / 10.
Can you provide the expected EPS growth for CMC stock?
The Earnings per Share (EPS) of COMMERCIAL METALS CO (CMC) is expected to grow by 86.26% in the next year.