COMMERCIAL METALS CO (CMC) Fundamental Analysis & Valuation

NYSE:CMC • US2017231034

Current stock price

62.585 USD
+0.63 (+1.03%)
Last:

This CMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. CMC Profitability Analysis

1.1 Basic Checks

  • CMC had positive earnings in the past year.
  • CMC had a positive operating cash flow in the past year.
  • CMC had positive earnings in each of the past 5 years.
  • In the past 5 years CMC always reported a positive cash flow from operatings.
CMC Yearly Net Income VS EBIT VS OCF VS FCFCMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • CMC's Return On Assets of 4.74% is fine compared to the rest of the industry. CMC outperforms 70.70% of its industry peers.
  • CMC has a better Return On Equity (10.15%) than 71.34% of its industry peers.
  • With a decent Return On Invested Capital value of 5.82%, CMC is doing good in the industry, outperforming 61.15% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CMC is in line with the industry average of 11.64%.
  • 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 RankSector 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%
CMC Yearly ROA, ROE, ROICCMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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.
  • In the last couple of years the Profit Margin of CMC has declined.
  • CMC's Operating Margin of 7.51% is fine compared to the rest of the industry. CMC outperforms 61.15% of its industry peers.
  • In the last couple of years the Operating Margin of CMC has declined.
  • CMC has a Gross Margin (16.47%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of CMC has declined.
Industry RankSector 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%
CMC Yearly Profit, Operating, Gross MarginsCMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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6

2. CMC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CMC is destroying value.
  • Compared to 1 year ago, CMC has less shares outstanding
  • CMC has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CMC is higher compared to a year ago.
CMC Yearly Shares OutstandingCMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
CMC Yearly Total Debt VS Total AssetsCMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 3.18 indicates that CMC is not in any danger for bankruptcy at the moment.
  • With a Altman-Z score value of 3.18, CMC perfoms like the industry average, outperforming 49.04% of the companies in the same industry.
  • CMC has a debt to FCF ratio of 11.32. This is a negative value and a sign of low solvency as CMC would need 11.32 years to pay back of all of its debts.
  • CMC's Debt to FCF ratio of 11.32 is fine compared to the rest of the industry. CMC outperforms 62.42% of its industry peers.
  • 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 79.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 11.32
Altman-Z 3.18
ROIC/WACC0.51
WACC11.35%
CMC Yearly LT Debt VS Equity VS FCFCMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 4.47 indicates that CMC has no problem at all paying its short term obligations.
  • The Current ratio of CMC (4.47) is better than 77.71% of its industry peers.
  • A Quick Ratio of 3.70 indicates that CMC has no problem at all paying its short term obligations.
  • The Quick ratio of CMC (3.70) is better than 75.80% of its industry peers.
Industry RankSector Rank
Current Ratio 4.47
Quick Ratio 3.7
CMC Yearly Current Assets VS Current LiabilitesCMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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5

3. CMC Growth Analysis

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.
  • CMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.60% yearly.
  • Looking at the last year, CMC shows a small growth in Revenue. The Revenue has grown by 2.26% in the last 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)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 24.03% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, CMC will show a small growth in Revenue. The Revenue will grow by 7.49% on average per year.
EPS Next Y135.53%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
EPS Next 5Y24.03%
Revenue Next Year17.35%
Revenue Next 2Y11.9%
Revenue Next 3Y7.49%
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.
CMC Yearly Revenue VS EstimatesCMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
CMC Yearly EPS VS EstimatesCMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

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8

4. CMC Valuation Analysis

4.1 Price/Earnings Ratio

  • CMC is valuated correctly with a Price/Earnings ratio of 14.87.
  • Compared to the rest of the industry, the Price/Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 88.53% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.11, CMC is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 8.36, the valuation of CMC can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CMC indicates a rather cheap valuation: CMC is cheaper than 85.99% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of CMC to the average of the S&P500 Index (24.12), we can say CMC is valued rather cheaply.
Industry RankSector Rank
PE 14.87
Fwd PE 8.36
CMC Price Earnings VS Forward Price EarningsCMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 74.52% 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 82.80% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 23.44
EV/EBITDA 10.34
CMC Per share dataCMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
  • The decent profitability rating of CMC may justify a higher PE ratio.
  • CMC's earnings are expected to grow with 29.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)4.13
EPS Next 2Y54.2%
EPS Next 3Y29.81%

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7

5. CMC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.17%, CMC has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.08, CMC pays a bit more dividend than its industry peers.
  • CMC's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.17%

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
CMC Yearly Dividends per shareCMC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

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 2Y54.2%
EPS Next 3Y29.81%
CMC Yearly Income VS Free CF VS DividendCMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B
CMC Dividend Payout.CMC Dividend Payout, showing the Payout Ratio.CMC Dividend Payout.PayoutRetained Earnings

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CMC Fundamentals: All Metrics, Ratios and Statistics

COMMERCIAL METALS CO

NYSE:CMC (3/18/2026, 2:37:55 PM)

62.585

+0.63 (+1.03%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)01-08
Earnings (Next)03-26
Inst Owners93.65%
Inst Owner Change-1.2%
Ins Owners0.57%
Ins Owner Change3.02%
Market Cap6.94B
Revenue(TTM)8.01B
Net Income(TTM)437.66M
Analysts77.65
Price Target81.86 (30.8%)
Short Float %4.84%
Short Ratio4.17
Dividend
Industry RankSector Rank
Dividend Yield 1.17%
Yearly Dividend0.72
Dividend Growth(5Y)8.46%
DP18.48%
Div Incr Years4
Div Non Decr Years13
Ex-Date01-16
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.11%
Min EPS beat(2)-0.47%
Max EPS beat(2)16.7%
EPS beat(4)1
Avg EPS beat(4)-2.22%
Min EPS beat(4)-14.1%
Max EPS beat(4)16.7%
EPS beat(8)3
Avg EPS beat(8)0.67%
EPS beat(12)6
Avg EPS beat(12)2.16%
EPS beat(16)10
Avg EPS beat(16)5.84%
Revenue beat(2)2
Avg Revenue beat(2)1.17%
Min Revenue beat(2)0.45%
Max Revenue beat(2)1.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)1.89%
Revenue beat(8)5
Avg Revenue beat(8)0.34%
Revenue beat(12)9
Avg Revenue beat(12)1.1%
Revenue beat(16)12
Avg Revenue beat(16)1.28%
PT rev (1m)0%
PT rev (3m)18.29%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)11.04%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)22.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.94%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)4.92%
Valuation
Industry RankSector Rank
PE 14.87
Fwd PE 8.36
P/S 0.87
P/FCF 23.44
P/OCF 9.83
P/B 1.61
P/tB 1.86
EV/EBITDA 10.34
EPS(TTM)4.21
EY6.73%
EPS(NY)7.49
Fwd EY11.97%
FCF(TTM)2.67
FCFY4.27%
OCF(TTM)6.37
OCFY10.17%
SpS72.21
BVpS38.88
TBVpS33.6
PEG (NY)0.11
PEG (5Y)4.13
Graham Number60.69
Profitability
Industry RankSector 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 RankSector 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 3.18
F-Score7
WACC11.35%
ROIC/WACC0.51
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 Y135.53%
EPS Next 2Y54.2%
EPS Next 3Y29.81%
EPS Next 5Y24.03%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y-4.36%
Revenue growth 5Y7.33%
Sales Q2Q%11.03%
Revenue Next Year17.35%
Revenue Next 2Y11.9%
Revenue Next 3Y7.49%
Revenue Next 5YN/A
EBIT growth 1Y2.43%
EBIT growth 3Y-26.7%
EBIT growth 5Y1.86%
EBIT Next Year158.42%
EBIT Next 3Y40.1%
EBIT Next 5Y30.38%
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 Fundamental Analysis 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 14.87 and the Price/Book (PB) ratio is 1.61.


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 135.53% in the next year.