COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
NYSE:CMC - New York Stock Exchange, Inc. - US2017231034 - Common Stock - Currency: USD
Taking everything into account, CMC scores 6 out of 10 in our fundamental rating. CMC was compared to 150 industry peers in the Metals & Mining industry. CMC gets an excellent profitability rating and is at the same time showing great financial health properties. CMC has a bad growth rate and is valued cheaply. This makes CMC very considerable for value investing!
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
Looking at the Return On Assets, with a value of 1.97%, CMC is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
CMC has a better Return On Equity (3.32%) than 62.68% of its industry peers.
CMC has a better Return On Invested Capital (8.01%) than 78.17% of its industry peers.
CMC had an Average Return On Invested Capital over the past 3 years of 15.00%. This is significantly above the industry average of 8.67%.
The 3 year average ROIC (15.00%) for CMC is well above the current ROIC(8.01%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 3.32% | ||
| ROIC | 8.01% |
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
CMC has a better Profit Margin (1.70%) than 60.56% of its industry peers.
In the last couple of years the Profit Margin of CMC has grown nicely.
With a decent Operating Margin value of 7.50%, CMC is doing good in the industry, outperforming 60.56% of the companies in the same industry.
CMC's Operating Margin has improved in the last couple of years.
CMC has a Gross Margin (16.18%) which is in line with its industry peers.
CMC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.5% | ||
| PM (TTM) | 1.7% | ||
| GM | 16.18% |
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.
Compared to 1 year ago, CMC has less shares outstanding
Compared to 5 years ago, CMC has less shares outstanding
The debt/assets ratio for CMC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.89 indicates that CMC is not in any danger for bankruptcy at the moment.
CMC's Altman-Z score of 3.89 is fine compared to the rest of the industry. CMC outperforms 65.49% of its industry peers.
The Debt to FCF ratio of CMC is 2.49, which is a good value as it means it would take CMC, 2.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CMC (2.49) is better than 77.46% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that CMC is not too dependend on debt financing.
CMC has a Debt to Equity ratio of 0.29. This is in the lower half of the industry: CMC underperforms 61.27% of its industry peers.
Even though the debt/equity ratio score it not favorable for CMC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 3.89 |
ROIC/WACC0.8
WACC9.97%
2.3 Liquidity
A Current Ratio of 2.76 indicates that CMC has no problem at all paying its short term obligations.
CMC has a Current ratio of 2.76. This is in the better half of the industry: CMC outperforms 61.27% of its industry peers.
CMC has a Quick Ratio of 1.94. This is a normal value and indicates that CMC is financially healthy and should not expect problems in meeting its short term obligations.
CMC has a better Quick ratio (1.94) than 62.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
CMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.20%.
Measured over the past years, CMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.44% on average per year.
The Revenue has decreased by -8.66% in the past 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)-47.2%
EPS 3Y7.76%
EPS 5Y16.44%
EPS Q2Q%-52.15%
Revenue 1Y (TTM)-8.66%
Revenue growth 3Y5.6%
Revenue growth 5Y6.34%
Sales Q2Q%-4.67%
3.2 Future
CMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.21% yearly.
CMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y-27.74%
EPS Next 2Y1.16%
EPS Next 3Y0.21%
EPS Next 5YN/A
Revenue Next Year-3.19%
Revenue Next 2Y2.84%
Revenue Next 3Y3.53%
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 13.26 indicates a correct valuation of CMC.
Based on the Price/Earnings ratio, CMC is valued cheaper than 83.10% of the companies in the same industry.
CMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.98.
A Price/Forward Earnings ratio of 10.47 indicates a reasonable valuation of CMC.
78.87% of the companies in the same industry are more expensive than CMC, based on the Price/Forward Earnings ratio.
CMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMC is valued a bit cheaper than 74.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CMC is valued cheaper than 89.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
The excellent profitability rating of CMC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y1.16%
EPS Next 3Y0.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.47%, CMC has a reasonable but not impressive dividend return.
The stock price of CMC dropped by -21.48% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.21, CMC pays a bit more dividend than its industry peers.
CMC's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of CMC is nicely growing with an annual growth rate of 7.29%!
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)7.29%
Div Incr Years4
Div Non Decr Years13
5.3 Sustainability
60.43% of the earnings are spent on dividend by CMC. This is not a sustainable payout ratio.
The dividend of CMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.43%
EPS Next 2Y1.16%
EPS Next 3Y0.21%
NYSE:CMC (3/3/2025, 2:47:17 PM)
47.47
-0.97 (-2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners92.67%
Inst Owner Change3.52%
Ins Owners0.51%
Ins Owner Change4.26%
Market Cap5.39B
Analysts72.5
Price Target59.94 (26.27%)
Short Float %3.06%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend0.68
Dividend Growth(5Y)7.29%
DP60.43%
Div Incr Years4
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.28%
Min EPS beat(2)-2.86%
Max EPS beat(2)0.3%
EPS beat(4)2
Avg EPS beat(4)3.55%
Min EPS beat(4)-2.86%
Max EPS beat(4)16.86%
EPS beat(8)5
Avg EPS beat(8)4.34%
EPS beat(12)9
Avg EPS beat(12)8.45%
EPS beat(16)12
Avg EPS beat(16)10.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)0.76%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)1.89%
Revenue beat(8)7
Avg Revenue beat(8)1.7%
Revenue beat(12)10
Avg Revenue beat(12)1.73%
Revenue beat(16)11
Avg Revenue beat(16)1.27%
PT rev (1m)-1.67%
PT rev (3m)-6.72%
EPS NQ rev (1m)17.93%
EPS NQ rev (3m)-44.19%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-19.81%
Revenue NQ rev (1m)2.29%
Revenue NQ rev (3m)-4.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 10.47 | ||
| P/S | 0.69 | ||
| P/FCF | 11.33 | ||
| P/OCF | 6.33 | ||
| P/B | 1.34 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)3.58
EY7.54%
EPS(NY)4.53
Fwd EY9.55%
FCF(TTM)4.19
FCFY8.83%
OCF(TTM)7.49
OCFY15.79%
SpS68.92
BVpS35.33
TBVpS29.95
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 3.32% | ||
| ROCE | 10.47% | ||
| ROIC | 8.01% | ||
| ROICexc | 9.46% | ||
| ROICexgc | 10.85% | ||
| OM | 7.5% | ||
| PM (TTM) | 1.7% | ||
| GM | 16.18% | ||
| FCFM | 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%
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.49 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 133.32% | ||
| Cap/Sales | 4.79% | ||
| Interest Coverage | 11.78 | ||
| Cash Conversion | 98.03% | ||
| Profit Quality | 356.71% | ||
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 3.89 |
F-Score4
WACC9.97%
ROIC/WACC0.8
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)-47.2%
EPS 3Y7.76%
EPS 5Y16.44%
EPS Q2Q%-52.15%
EPS Next Y-27.74%
EPS Next 2Y1.16%
EPS Next 3Y0.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.66%
Revenue growth 3Y5.6%
Revenue growth 5Y6.34%
Sales Q2Q%-4.67%
Revenue Next Year-3.19%
Revenue Next 2Y2.84%
Revenue Next 3Y3.53%
Revenue Next 5YN/A
EBIT growth 1Y-44.24%
EBIT growth 3Y4.4%
EBIT growth 5Y12.2%
EBIT Next Year19.73%
EBIT Next 3Y13.49%
EBIT Next 5Y8.73%
FCF growth 1Y-10.82%
FCF growth 3Y135.07%
FCF growth 5YN/A
OCF growth 1Y-18.65%
OCF growth 3Y57.91%
OCF growth 5Y89.31%