COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
72.99 USD
+0.53 (+0.73%)
72.99 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CMC. CMC was compared to 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. CMC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes CMC very considerable for value investing!
1. Profitability
1.1 Basic Checks
CMC had positive earnings in the past year.
CMC had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 4.74%, CMC is doing good in the industry, outperforming 73.89% of the companies in the same industry.
The Return On Equity of CMC (10.15%) is better than 75.16% of its industry peers.
CMC has a Return On Invested Capital of 5.82%. This is in the better half of the industry: CMC outperforms 64.33% 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 10.34%.
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
With a decent Profit Margin value of 5.46%, CMC is doing good in the industry, outperforming 68.79% of the companies in the same industry.
CMC's Profit Margin has declined in the last couple of years.
CMC's Operating Margin of 7.51% is fine compared to the rest of the industry. CMC outperforms 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
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.
The number of shares outstanding for CMC has been reduced compared to 5 years ago.
CMC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.33 indicates that CMC is not in any danger for bankruptcy at the moment.
The Altman-Z score of CMC (3.33) is comparable to the rest of the industry.
The Debt to FCF ratio of CMC is 11.32, which is on the high side as it means it would take CMC, 11.32 years of fcf income to pay off 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.
The Debt to Equity ratio of CMC (0.77) is worse than 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 11.32 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.59
WACC9.86%
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 better Current ratio (4.47) than 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.
The Quick ratio of CMC (3.70) is better than 73.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.47 | ||
| Quick Ratio | 3.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.60% over the past 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.
CMC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
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)2.26%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
3.2 Future
The Earnings Per Share is expected to grow by 23.29% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.21% on average over the next years.
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
With a Price/Earnings ratio of 17.34, CMC is valued on the expensive side.
Based on the Price/Earnings ratio, CMC is valued cheaply inside the industry as 91.08% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.25. CMC is valued slightly cheaper when compared to this.
CMC is valuated reasonably with a Price/Forward Earnings ratio of 11.67.
Based on the Price/Forward Earnings ratio, CMC is valued cheaper than 81.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CMC to the average of the S&P500 Index (23.98), we can say CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 11.67 |
4.2 Price Multiples
73.25% 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 cheaply inside the industry as 82.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.37 | ||
| EV/EBITDA | 11.73 |
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.
The decent profitability rating of CMC may justify a higher PE ratio.
A more expensive valuation may be justified as CMC's earnings are expected to grow with 23.29% in the coming years.
PEG (NY)0.17
PEG (5Y)4.82
EPS Next 2Y40.91%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
CMC has a yearly dividend return of 0.99%, which is pretty low.
CMC's Dividend Yield is a higher than the industry average which is at 0.98.
Compared to an average S&P500 Dividend Yield of 1.92, CMC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of CMC is nicely growing with an annual growth rate of 8.46%!
CMC has paid a dividend for at least 10 years, which is 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%
72.99
+0.53 (+0.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.09%
Inst Owner Change-0.06%
Ins Owners0.57%
Ins Owner Change3.17%
Market Cap8.11B
Revenue(TTM)8.01B
Net Income(TTM)437.66M
Analysts76.47
Price Target71.52 (-2.01%)
Short Float %4.15%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP18.48%
Div Incr Years4
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.86%
Min EPS beat(2)-0.47%
Max EPS beat(2)16.2%
EPS beat(4)1
Avg EPS beat(4)-2.34%
Min EPS beat(4)-14.1%
Max EPS beat(4)16.2%
EPS beat(8)3
Avg EPS beat(8)0.6%
EPS beat(12)6
Avg EPS beat(12)2.12%
EPS beat(16)10
Avg EPS beat(16)5.81%
Revenue beat(2)2
Avg Revenue beat(2)1.24%
Min Revenue beat(2)0.45%
Max Revenue beat(2)2.04%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)2.04%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)9
Avg Revenue beat(12)1.11%
Revenue beat(16)12
Avg Revenue beat(16)1.29%
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 | 17.34 | ||
| Fwd PE | 11.67 | ||
| P/S | 1.01 | ||
| P/FCF | 27.37 | ||
| P/OCF | 11.48 | ||
| P/B | 1.88 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)4.21
EY5.77%
EPS(NY)6.25
Fwd EY8.57%
FCF(TTM)2.67
FCFY3.65%
OCF(TTM)6.36
OCFY8.71%
SpS72.12
BVpS38.83
TBVpS33.56
PEG (NY)0.17
PEG (5Y)4.82
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 | 3.33 |
F-Score7
WACC9.86%
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 Year12.35%
Revenue Next 2Y9.76%
Revenue Next 3Y6.21%
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 17.34 and the Price/Book (PB) ratio is 1.88.
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.