COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - NYSE:CMC - US2017231034 - Common Stock
58.395 USD
+0.55 (+0.96%)
Taking everything into account, CMC scores 6 out of 10 in our fundamental rating. CMC was compared to 156 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making CMC a very profitable company, without any liquidiy or solvency issues. CMC is valued correctly, but it does not seem to be growing.
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.
CMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.53%, CMC is doing good in the industry, outperforming 60.26% of the companies in the same industry.
CMC has a better Return On Equity (0.90%) than 60.26% of its industry peers.
The Return On Invested Capital of CMC (6.08%) is better than 67.95% of its industry peers.
CMC had an Average Return On Invested Capital over the past 3 years of 15.00%. This is above the industry average of 12.92%.
The 3 year average ROIC (15.00%) for CMC is well above the current ROIC(6.08%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 0.9% | ||
| ROIC | 6.08% |
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
Looking at the Profit Margin, with a value of 0.48%, CMC is in line with its industry, outperforming 58.97% of the companies in the same industry.
In the last couple of years the Profit Margin of CMC has grown nicely.
CMC has a Operating Margin of 6.02%. This is comparable to the rest of the industry: CMC outperforms 59.62% of its industry peers.
In the last couple of years the Operating Margin of CMC has grown nicely.
CMC has a Gross Margin of 14.98%. This is comparable to the rest of the industry: CMC outperforms 51.28% of its industry peers.
CMC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.02% | ||
| PM (TTM) | 0.48% | ||
| GM | 14.98% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMC is 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
CMC has an Altman-Z score of 3.91. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.91, CMC is doing good in the industry, outperforming 61.54% of the companies in the same industry.
The Debt to FCF ratio of CMC is 3.57, which is a good value as it means it would take CMC, 3.57 years of fcf income to pay off all of its debts.
CMC's Debt to FCF ratio of 3.57 is fine compared to the rest of the industry. CMC outperforms 72.44% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that CMC is not too dependend on debt financing.
CMC has a Debt to Equity ratio of 0.32. This is in the lower half of the industry: CMC underperforms 62.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 3.91 |
ROIC/WACC0.66
WACC9.18%
2.3 Liquidity
A Current Ratio of 2.86 indicates that CMC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.86, CMC is doing good in the industry, outperforming 60.26% of the companies in the same industry.
A Quick Ratio of 2.00 indicates that CMC has no problem at all paying its short term obligations.
With a Quick ratio value of 2.00, CMC perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
CMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.66%.
CMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.44% yearly.
Looking at the last year, CMC shows a decrease in Revenue. The Revenue has decreased by -5.64% in the last year.
Measured over the past years, CMC shows a small growth in Revenue. The Revenue has been growing by 6.34% on average per year.
EPS 1Y (TTM)-48.66%
EPS 3Y7.76%
EPS 5Y16.44%
EPS Q2Q%-27.45%
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.6%
Revenue growth 5Y6.34%
Sales Q2Q%-2.81%
3.2 Future
The Earnings Per Share is expected to grow by 0.63% on average over the next years.
The Revenue is expected to grow by 3.37% on average over the next years.
EPS Next Y-28.26%
EPS Next 2Y2.08%
EPS Next 3Y0.63%
EPS Next 5YN/A
Revenue Next Year-2.01%
Revenue Next 2Y2.97%
Revenue Next 3Y3.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.79 indicates a rather expensive valuation of CMC.
Compared to the rest of the industry, the Price/Earnings ratio of CMC indicates a somewhat cheap valuation: CMC is cheaper than 78.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CMC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.65, CMC is valued correctly.
Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than 73.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, CMC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.79 | ||
| Fwd PE | 12.65 |
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 76.28% 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 85.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.37 | ||
| EV/EBITDA | 9.26 |
4.3 Compensation for Growth
The decent profitability rating of CMC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y2.08%
EPS Next 3Y0.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, CMC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, CMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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 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)7.29%
Div Incr Years4
Div Non Decr Years13
5.3 Sustainability
CMC pays out 222.70% of its income as dividend. This is not a sustainable payout ratio.
CMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP222.7%
EPS Next 2Y2.08%
EPS Next 3Y0.63%
NYSE:CMC (9/15/2025, 1:46:57 PM)
58.395
+0.55 (+0.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners94.88%
Inst Owner Change-1.09%
Ins Owners0.58%
Ins Owner Change0.01%
Market Cap6.54B
Analysts71.76
Price Target58.88 (0.83%)
Short Float %3.07%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.68
Dividend Growth(5Y)7.29%
DP222.7%
Div Incr Years4
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.54%
Min EPS beat(2)-14.1%
Max EPS beat(2)-10.99%
EPS beat(4)1
Avg EPS beat(4)-6.91%
Min EPS beat(4)-14.1%
Max EPS beat(4)0.3%
EPS beat(8)3
Avg EPS beat(8)-0.74%
EPS beat(12)7
Avg EPS beat(12)2.67%
EPS beat(16)10
Avg EPS beat(16)6.63%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-0.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)0.61%
Revenue beat(8)5
Avg Revenue beat(8)0.72%
Revenue beat(12)8
Avg Revenue beat(12)0.94%
Revenue beat(16)10
Avg Revenue beat(16)0.75%
PT rev (1m)4.27%
PT rev (3m)11.33%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)23.48%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)7.5%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.79 | ||
| Fwd PE | 12.65 | ||
| P/S | 0.85 | ||
| P/FCF | 17.37 | ||
| P/OCF | 8.7 | ||
| P/B | 1.6 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 9.26 |
EPS(TTM)2.68
EY4.59%
EPS(NY)4.62
Fwd EY7.91%
FCF(TTM)3.36
FCFY5.76%
OCF(TTM)6.72
OCFY11.5%
SpS68.62
BVpS36.61
TBVpS31.22
PEG (NY)N/A
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 0.9% | ||
| ROCE | 7.94% | ||
| ROIC | 6.08% | ||
| ROICexc | 7.18% | ||
| ROICexgc | 8.18% | ||
| OM | 6.02% | ||
| PM (TTM) | 0.48% | ||
| GM | 14.98% | ||
| FCFM | 4.9% |
ROA(3y)13.2%
ROA(5y)11.07%
ROE(3y)23.07%
ROE(5y)20.4%
ROIC(3y)15%
ROIC(5y)13.7%
ROICexc(3y)17.18%
ROICexc(5y)15.83%
ROICexgc(3y)19.56%
ROICexgc(5y)17.4%
ROCE(3y)19.6%
ROCE(5y)17.94%
ROICexcg growth 3Y-7.72%
ROICexcg growth 5Y2.01%
ROICexc growth 3Y-10.89%
ROICexc growth 5Y-0.05%
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%
F-Score4
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 131.44% | ||
| Cap/Sales | 4.89% | ||
| Interest Coverage | 9.05 | ||
| Cash Conversion | 100.54% | ||
| Profit Quality | 1022.25% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 3.91 |
F-Score4
WACC9.18%
ROIC/WACC0.66
Cap/Depr(3y)216.7%
Cap/Depr(5y)174.63%
Cap/Sales(3y)5.34%
Cap/Sales(5y)4.44%
Profit Quality(3y)74.95%
Profit Quality(5y)90.31%
High Growth Momentum
Growth
EPS 1Y (TTM)-48.66%
EPS 3Y7.76%
EPS 5Y16.44%
EPS Q2Q%-27.45%
EPS Next Y-28.26%
EPS Next 2Y2.08%
EPS Next 3Y0.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.6%
Revenue growth 5Y6.34%
Sales Q2Q%-2.81%
Revenue Next Year-2.01%
Revenue Next 2Y2.97%
Revenue Next 3Y3.37%
Revenue Next 5YN/A
EBIT growth 1Y-41.41%
EBIT growth 3Y4.4%
EBIT growth 5Y12.2%
EBIT Next Year18.66%
EBIT Next 3Y13.57%
EBIT Next 5Y7.43%
FCF growth 1Y-52.84%
FCF growth 3Y135.07%
FCF growth 5YN/A
OCF growth 1Y-46.05%
OCF growth 3Y57.91%
OCF growth 5Y89.31%