NYSE:CMC

Stock Analysis Report

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Executive Summary

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, Germany, and internationally. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Commercial Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CMC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CMC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

CMC

-1.4%

US Metals and Mining

2.6%

US Market


1 Year Return

0.2%

CMC

47.1%

US Metals and Mining

26.0%

US Market

Return vs Industry: CMC underperformed the US Metals and Mining industry which returned 47.1% over the past year.

Return vs Market: CMC underperformed the US Market which returned 26% over the past year.


Shareholder returns

CMCIndustryMarket
7 Day-0.3%-1.4%2.6%
30 Day6.0%5.7%5.1%
90 Day2.5%21.6%17.1%
1 Year2.8%0.2%50.4%47.1%28.9%26.0%
3 Year-9.4%-16.0%21.5%13.3%46.3%36.6%
5 Year77.4%56.4%191.0%162.6%126.9%101.6%

Long-Term Price Volatility Vs. Market

How volatile is Commercial Metals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Commercial Metals undervalued compared to its fair value and its price relative to the market?

9.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMC ($21.23) is trading above our estimate of fair value ($13.6)

Significantly Below Fair Value: CMC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CMC is good value based on its PE Ratio (9.8x) compared to the US Metals and Mining industry average (20.3x).

PE vs Market: CMC is good value based on its PE Ratio (9.8x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: CMC is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: CMC is good value based on its PB Ratio (1.3x) compared to the US Metals and Mining industry average (1.7x).


Next Steps

Future Growth

How is Commercial Metals forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMC's forecast earnings growth (1.9% per year) is below the savings rate (2%).

Earnings vs Market: CMC's earnings (1.9% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: CMC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMC's revenue (0.7% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: CMC's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMC's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Commercial Metals performed over the past 5 years?

37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMC has high quality earnings.

Growing Profit Margin: CMC's current net profit margins (4.7%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: CMC's earnings have grown significantly by 37.2% per year over the past 5 years.

Accelerating Growth: CMC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CMC had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-12.4%).


Return on Equity

High ROE: CMC's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is Commercial Metals's financial position?


Financial Position Analysis

Short Term Liabilities: CMC's short term assets ($2.2B) exceed its short term liabilities ($613.2M).

Long Term Liabilities: CMC's short term assets ($2.2B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: CMC's debt to equity ratio (53.4%) is considered high.

Reducing Debt: CMC's debt to equity ratio has reduced from 96.1% to 53.4% over the past 5 years.

Debt Coverage: CMC's debt is well covered by operating cash flow (61.2%).

Interest Coverage: CMC's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

What is Commercial Metals's current dividend yield, its reliability and sustainability?

2.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMC's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: CMC's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.85%).


Stability and Growth of Payments

Stable Dividend: CMC's dividends per share have been stable in the past 10 years.

Growing Dividend: CMC's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.1%), CMC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMC's dividends in 3 years are forecast to be well covered by earnings (25.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Barbara Smith (61 yo)

3.33yrs

Tenure

US$9,038,341

Compensation

Ms. Barbara R. Smith, CPA., has been the President and Chief Executive Officer of Commercial Metals Company (CMC) since January 11, 2017 and September 1, 2017 respectively. Ms. Smith has been the Chairman ...


CEO Compensation Analysis

Compensation vs Market: Barbara's total compensation ($USD9.04M) is above average for companies of similar size in the US market ($USD5.01M).

Compensation vs Earnings: Barbara's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Barbara Smith
Chairman3.33yrsUS$9.04m0.44%
$ 11.2m
Paul Lawrence
VP & CFO1.33yrsUS$2.30m0.029%
$ 747.1k
Tracy Porter
Executive VP & COO2.75yrsUS$4.25m0.21%
$ 5.3m
Jody Absher
VP, General Counsel & Corporate Secretary0.92yrUS$644.96k0.0058%
$ 148.4k
Jennifer Durbin
Vice President of Human Resources1yrUS$619.68k0.0042%
$ 108.1k
Adam Hickey
VP & Chief Accounting Officer4yrsno data0.029%
$ 748.7k
Billy Milligan
Vice President of Marketing & Enterprise Support1yrno datano data
Jerzy Kozicz
Managing Director of CMC Polandno datano datano data
Brad Cottrell
VP & Chief Supply Chain Officerno datano datano data
Ty Garrison
Vice President of East Regionno datano datano data

1.3yrs

Average Tenure

47.5yo

Average Age

Experienced Management: CMC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Barbara Smith
Chairman3.33yrsUS$9.04m0.44%
$ 11.2m
Joseph Winkler
Independent Lead Director2yrsUS$275.00k0.057%
$ 1.5m
Rhys Best
Independent Director11yrsUS$245.00k0.077%
$ 2.0m
Richard Kelson
Independent Director11yrsUS$242.04k0.0098%
$ 250.8k
Charles Szews
Independent Director7yrsUS$252.27k0.040%
$ 1.0m
Sarah Raiss
Independent Director10yrsUS$243.20k0.060%
$ 1.5m
J. Smith
Independent Director17yrsUS$247.00k0.082%
$ 2.1m
Vicki Avril-Groves
Independent Director7yrsUS$245.46k0.027%
$ 691.8k
Peter Matt
Independent Director1yrUS$98.09k0.0075%
$ 191.7k
Lisa Barton
Independent Director1yrUS$202.50k0.0089%
$ 225.6k

7.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CMC's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CMC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Commercial Metals Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Commercial Metals Company
  • Ticker: CMC
  • Exchange: NYSE
  • Founded: 1915
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$2.549b
  • Shares outstanding: 120.07m
  • Website: https://www.cmc.com

Number of Employees


Location

  • Commercial Metals Company
  • 6565 North MacArthur Boulevard
  • Suite 800
  • Irving
  • Texas
  • 75039
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
CMSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
CMSXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968

Biography

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, Germany, and internationally. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 00:27
End of Day Share Price2021/01/25 00:00
Earnings2020/11/30
Annual Earnings2020/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.