COMMERCIAL METALS CO (CMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMC - US2017231034 - Common Stock
70.47 USD
+0.98 (+1.41%)
70.47 USD
0 (0%)
CMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. CMC has only an average score on both its financial health and profitability. CMC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years CMC has always been profitable.
Each year in the past 5 years CMC had a positive operating cash flow.
1.2 Ratios
CMC's Return On Assets of 1.18% is in line compared to the rest of the industry. CMC outperforms 58.97% of its industry peers.
CMC has a Return On Equity of 2.02%. This is comparable to the rest of the industry: CMC outperforms 58.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.82%, CMC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CMC had an Average Return On Invested Capital over the past 3 years of 10.48%. This is below the industry average of 13.25%.
| 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 has a Profit Margin of 1.09%. This is comparable to the rest of the industry: CMC outperforms 58.97% of its industry peers.
In the last couple of years the Profit Margin of CMC has declined.
CMC's Operating Margin of 6.67% is in line compared to the rest of the industry. CMC outperforms 58.97% 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.
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
CMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CMC has less shares outstanding
Compared to 5 years ago, CMC has less shares outstanding
Compared to 1 year ago, CMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.16 indicates that CMC is not in any danger for bankruptcy at the moment.
CMC has a Altman-Z score (4.16) which is in line with its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.34, CMC is in the better half of the industry, outperforming 70.51% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that CMC is not too dependend on debt financing.
The Debt to Equity ratio of CMC (0.31) is worse than 66.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.16 |
ROIC/WACC0.69
WACC9.9%
2.3 Liquidity
CMC has a Current Ratio of 2.78. This indicates that CMC is financially healthy and has no problem in meeting its short term obligations.
CMC has a Current ratio (2.78) which is comparable to the rest of the industry.
A Quick Ratio of 2.03 indicates that CMC has no problem at all paying its short term obligations.
CMC's Quick ratio of 2.03 is in line compared to the rest of the industry. CMC outperforms 55.13% 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.
Measured over the past years, CMC shows a small growth in Revenue. The Revenue has been growing by 7.33% on average per year.
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 21.80% on average over the next years. This is a very strong growth
CMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y93%
EPS Next 2Y37.19%
EPS Next 3Y21.8%
EPS Next 5YN/A
Revenue Next Year11.85%
Revenue Next 2Y9.25%
Revenue Next 3Y5.86%
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 22.37, CMC is valued on the expensive side.
Based on the Price/Earnings ratio, CMC is valued cheaper than 80.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.61. CMC is around the same levels.
With a Price/Forward Earnings ratio of 11.59, the valuation of CMC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CMC is valued a bit cheaper than 79.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CMC to the average of the S&P500 Index (24.01), we can say CMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
CMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CMC is cheaper than 78.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CMC is valued cheaper than 82.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.06 | ||
| EV/EBITDA | 10.1 |
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 21.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)6.22
EPS Next 2Y37.19%
EPS Next 3Y21.8%
5. Dividend
5.1 Amount
CMC has a Yearly Dividend Yield of 1.03%.
CMC's Dividend Yield is a higher than the industry average which is at 1.02.
With a Dividend Yield of 1.03, CMC pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 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 2Y37.19%
EPS Next 3Y21.8%
70.47
+0.98 (+1.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.15%
Inst Owner Change-0.39%
Ins Owners0.57%
Ins Owner Change3.15%
Market Cap7.83B
Revenue(TTM)7.80B
Net Income(TTM)84.66M
Analysts72.94
Price Target69.2 (-1.8%)
Short Float %4.27%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)4.04%
PT rev (3m)17.52%
EPS NQ rev (1m)2.13%
EPS NQ rev (3m)35.78%
EPS NY rev (1m)3.61%
EPS NY rev (3m)31.7%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 11.59 | ||
| P/S | 1 | ||
| P/FCF | 25.06 | ||
| P/OCF | 10.94 | ||
| P/B | 1.87 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)3.15
EY4.47%
EPS(NY)6.08
Fwd EY8.63%
FCF(TTM)2.81
FCFY3.99%
OCF(TTM)6.44
OCFY9.14%
SpS70.22
BVpS37.76
TBVpS32.38
PEG (NY)0.24
PEG (5Y)6.22
Graham Number51.73
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 | 4.16 |
F-Score4
WACC9.9%
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)-28.89%
EPS 3Y-27.34%
EPS 5Y3.6%
EPS Q2Q%52.22%
EPS Next Y93%
EPS Next 2Y37.19%
EPS Next 3Y21.8%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%5.93%
Revenue Next Year11.85%
Revenue Next 2Y9.25%
Revenue Next 3Y5.86%
Revenue Next 5YN/A
EBIT growth 1Y-25.04%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year127.32%
EBIT Next 3Y34.71%
EBIT Next 5Y29.99%
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 6 / 10 to COMMERCIAL METALS CO (CMC). This can be considered as Fairly Valued.
What is the profitability of CMC stock?
COMMERCIAL METALS CO (CMC) has a profitability rating of 4 / 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 93% in the next year.