COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - NYSE:CMC - US2017231034 - Common Stock
58.98 USD
-0.55 (-0.92%)
58.98 USD
0 (0%)
CMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Each year in the past 5 years CMC has been profitable.
Each year in the past 5 years CMC had a positive operating cash flow.
1.2 Ratios
CMC has a Return On Assets (1.18%) which is comparable to the rest of the industry.
With a Return On Equity value of 2.02%, CMC perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
CMC has a Return On Invested Capital of 6.82%. This is in the better half of the industry: CMC outperforms 68.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMC is below the industry average of 12.85%.
| 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's Profit Margin of 1.09% is in line compared to the rest of the industry. CMC outperforms 59.74% of its industry peers.
CMC's Profit Margin has declined in the last couple of years.
CMC has a better Operating Margin (6.67%) than 60.39% of its industry peers.
In the last couple of years the Operating Margin of CMC has declined.
The Gross Margin of CMC (15.65%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMC is creating some value.
Compared to 1 year ago, CMC has less shares outstanding
CMC has less shares outstanding than it did 5 years ago.
CMC has a worse debt/assets ratio than last year.
2.2 Solvency
CMC has an Altman-Z score of 3.90. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC has a Altman-Z score (3.90) which is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 4.34, CMC is doing good in the industry, outperforming 74.03% of the companies in the same industry.
CMC has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
CMC has a Debt to Equity ratio of 0.31. This is in the lower half of the industry: CMC underperforms 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.78
WACC8.72%
2.3 Liquidity
A Current Ratio of 2.78 indicates that CMC has no problem at all paying its short term obligations.
The Current ratio of CMC (2.78) is comparable to the rest of the industry.
CMC has a Quick Ratio of 2.03. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC's Quick ratio of 2.03 is in line compared 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.
The Revenue has decreased by -1.61% in the past year.
The Revenue has been growing slightly by 7.33% on average over the past years.
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
The Earnings Per Share is expected to grow by 19.41% on average over the next years. This is quite good.
CMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y86.26%
EPS Next 2Y34.24%
EPS Next 3Y19.41%
EPS Next 5YN/A
Revenue Next Year10.98%
Revenue Next 2Y8.39%
Revenue Next 3Y5.86%
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.
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
Based on the Price/Earnings ratio of 18.72, the valuation of CMC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, CMC is valued a bit cheaper.
The Price/Forward Earnings ratio is 10.05, which indicates a very decent valuation of CMC.
CMC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CMC is cheaper than 81.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
CMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CMC is cheaper than 79.22% of the companies in the same industry.
85.06% of the companies in the same industry are more expensive than CMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.96 | ||
| EV/EBITDA | 8.51 |
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.
CMC's earnings are expected to grow with 19.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)5.21
EPS Next 2Y34.24%
EPS Next 3Y19.41%
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 2.63, CMC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.21, CMC pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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 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
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 3Y19.41%
58.98
-0.55 (-0.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-0.3%
Ins Owners0.58%
Ins Owner Change8.39%
Market Cap6.55B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target66.51 (12.77%)
Short Float %3.25%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)6.67%
PT rev (3m)17.78%
EPS NQ rev (1m)18.66%
EPS NQ rev (3m)56.35%
EPS NY rev (1m)22.35%
EPS NY rev (3m)28.47%
Revenue NQ rev (1m)-2.43%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)2.55%
Revenue NY rev (3m)2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 10.05 | ||
| P/S | 0.84 | ||
| P/FCF | 20.96 | ||
| P/OCF | 9.15 | ||
| P/B | 1.56 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)3.15
EY5.34%
EPS(NY)5.87
Fwd EY9.95%
FCF(TTM)2.81
FCFY4.77%
OCF(TTM)6.44
OCFY10.93%
SpS70.28
BVpS37.79
TBVpS32.4
PEG (NY)0.22
PEG (5Y)5.21
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 | 3.9 |
F-Score4
WACC8.72%
ROIC/WACC0.78
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 3Y19.41%
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 3Y5.86%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year98.29%
EBIT Next 3Y34.67%
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 5 / 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.