COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
72.46 USD
+1.85 (+2.62%)
72.88 USD
+0.42 (+0.58%)
We assign a fundamental rating of 6 out of 10 to CMC. CMC was compared to 157 industry peers in the Metals & Mining industry. CMC has an average financial health and profitability rating. CMC may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, CMC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year CMC was profitable.
In the past year CMC had a positive cash flow from operations.
Each year in the past 5 years CMC has been profitable.
CMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CMC (1.18%) is better than 60.51% of its industry peers.
CMC has a Return On Equity of 2.02%. This is in the better half of the industry: CMC outperforms 60.51% of its industry peers.
CMC has a Return On Invested Capital of 6.82%. This is in the better half of the industry: CMC outperforms 66.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CMC is in line with the industry average of 10.33%.
| 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
With a Profit Margin value of 1.09%, CMC perfoms like the industry average, outperforming 59.24% of the companies in the same industry.
CMC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.67%, CMC perfoms like the industry average, outperforming 59.24% of the companies in the same industry.
In the last couple of years the Operating Margin of CMC has declined.
CMC's Gross Margin of 15.65% is in line compared to the rest of the industry. CMC outperforms 50.32% of its industry peers.
In the last couple of years the Gross Margin of CMC has declined.
| 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
The number of shares outstanding for CMC has been reduced compared to 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 4.20. This indicates that CMC is financially healthy and has little risk of bankruptcy at the moment.
CMC's Altman-Z score of 4.20 is in line compared to the rest of the industry. CMC outperforms 57.96% of its industry peers.
CMC has a debt to FCF ratio of 4.34. This is a neutral value as CMC would need 4.34 years to pay back of all of its debts.
CMC's Debt to FCF ratio of 4.34 is fine compared to the rest of the industry. CMC outperforms 71.97% of its industry peers.
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 63.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.2 |
ROIC/WACC0.69
WACC9.94%
2.3 Liquidity
A Current Ratio of 2.78 indicates that CMC has no problem at all paying its short term obligations.
With a Current ratio value of 2.78, CMC perfoms like the industry average, outperforming 56.69% of the companies in the same industry.
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 56.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.03 |
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 decreased by -1.61% in the past year.
CMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.33% yearly.
EPS 1Y (TTM)17.6%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%135.9%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
3.2 Future
CMC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.29% yearly.
Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 6.21% on average per year.
EPS Next Y100.29%
EPS Next 2Y40.91%
EPS Next 3Y23.29%
EPS Next 5YN/A
Revenue Next Year12.35%
Revenue Next 2Y9.76%
Revenue Next 3Y6.21%
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.
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
Based on the Price/Earnings ratio of 17.21, the valuation of CMC can be described as rather expensive.
CMC's Price/Earnings ratio is rather cheap when compared to the industry. CMC is cheaper than 91.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, CMC is valued a bit cheaper.
A Price/Forward Earnings ratio of 11.59 indicates a reasonable valuation of CMC.
CMC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CMC is cheaper than 80.89% of the companies in the same industry.
CMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than the industry average as 77.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CMC is valued cheaply inside the industry as 84.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.77 | ||
| EV/EBITDA | 10.37 |
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's earnings are expected to grow with 23.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)4.79
EPS Next 2Y40.91%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.02%.
CMC's Dividend Yield is a higher than the industry average which is at 0.98.
With a Dividend Yield of 1.02, CMC pays less dividend than the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
96.19% of the earnings are spent on dividend by CMC. 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 2Y40.91%
EPS Next 3Y23.29%
72.46
+1.85 (+2.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.09%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner Change3.15%
Market Cap8.05B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts76.47
Price Target71.52 (-1.3%)
Short Float %4.15%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)1.96%
EPS beat(16)10
Avg EPS beat(16)6.75%
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)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 | 17.21 | ||
| Fwd PE | 11.59 | ||
| P/S | 1.03 | ||
| P/FCF | 25.77 | ||
| P/OCF | 11.25 | ||
| P/B | 1.92 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 10.37 |
EPS(TTM)4.21
EY5.81%
EPS(NY)6.25
Fwd EY8.63%
FCF(TTM)2.81
FCFY3.88%
OCF(TTM)6.44
OCFY8.89%
SpS70.22
BVpS37.76
TBVpS32.38
PEG (NY)0.17
PEG (5Y)4.79
Graham Number59.81
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 | 4.2 |
F-Score4
WACC9.94%
ROIC/WACC0.69
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)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
Revenue Next Year12.35%
Revenue Next 2Y9.76%
Revenue Next 3Y6.21%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year133.16%
EBIT Next 3Y35.61%
EBIT Next 5Y30.53%
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 6 / 10 to CMC.
What is the valuation status for 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.
Can you provide the PE and PB ratios for CMC stock?
The Price/Earnings (PE) ratio for COMMERCIAL METALS CO (CMC) is 17.21 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.