Commercial Metals
Commercial Metals Company manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally. The last earnings update was 19 days ago. More info.
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- Commercial Metals has significant price volatility in the past 3 months.
CMC Share Price and Events
7 Day Returns
1 Year Returns
CMC Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Commercial Metals (CMC) | 2.8% | 19.8% | 1.3% | -17.3% | 6.3% | -0.6% |
| US Metals and Mining | 1.4% | 6.3% | -3.5% | -15.9% | -0.8% | -17.7% |
| US Market | 1.1% | 4.3% | 2.9% | 4.7% | 37.7% | 43.6% |
1 Year Return vs Industry and Market
- CMC underperformed the Metals and Mining industry which returned -15.9% over the past year.
- CMC underperformed the Market in United States of America which returned 4.7% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Commercial Metals
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Commercial Metals.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 10 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Metals and Mining Unlevered Beta | Simply Wall St/ S&P Global | 1.05 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.053 (1 + (1- 21%) (63.76%)) |
1.391 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.39 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.391 * 5.96%) |
11.02% |
Discounted Cash Flow Calculation for NYSE:CMC using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Commercial Metals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 11.02%) |
|
|---|---|---|---|
| 2020 | 241.01 | Analyst x7 | 217.08 |
| 2021 | 250.50 | Analyst x2 | 203.23 |
| 2022 | 259.33 | Est @ 3.52% | 189.51 |
| 2023 | 267.85 | Est @ 3.29% | 176.30 |
| 2024 | 276.20 | Est @ 3.12% | 163.75 |
| 2025 | 284.49 | Est @ 3% | 151.92 |
| 2026 | 292.80 | Est @ 2.92% | 140.84 |
| 2027 | 301.19 | Est @ 2.86% | 130.49 |
| 2028 | 309.69 | Est @ 2.82% | 120.85 |
| 2029 | 318.35 | Est @ 2.8% | 111.90 |
| Present value of next 10 years cash flows | $1,605.88 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= $318.35 × (1 + 2.73%) ÷ (11.02% – 2.73%) |
$3,944.19 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $3,944.19 ÷ (1 + 11.02%)10 |
$1,386.38 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $1,605.88 + $1,386.38 |
$2,992.26 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $2,992.26 / 117.92 |
$25.37 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $25.37 |
| Current discount | Discount to share price of
$18.11
= -1 x ($18.11 - $25.37) / $25.37 |
28.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Commercial Metals's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Commercial Metals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Commercial Metals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Commercial Metals's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-05-31) in USD | $1.40 |
| NYSE:CMC Share Price ** | NYSE (2019-07-16) in USD | $18.11 |
| United States of America Metals and Mining Industry PE Ratio | Median Figure of 45 Publicly-Listed Metals and Mining Companies | 10.82x |
| United States of America Market PE Ratio | Median Figure of 3,084 Publicly-Listed Companies | 17.98x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Commercial Metals.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:CMC Share Price ÷ EPS (both in USD) = 18.11 ÷ 1.40 |
12.97x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Commercial Metals is overvalued based on earnings compared to the US Metals and Mining industry average.
- Commercial Metals is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Commercial Metals's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 12.97x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts |
15.9%per year |
| United States of America Metals and Mining Industry PEG Ratio | Median Figure of 23 Publicly-Listed Metals and Mining Companies | 0.66x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.58x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 12.97x ÷ 15.9% |
0.81x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Commercial Metals is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Commercial Metals's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-05-31) in USD | $13.26 |
| NYSE:CMC Share Price * | NYSE (2019-07-16) in USD | $18.11 |
| United States of America Metals and Mining Industry PB Ratio | Median Figure of 106 Publicly-Listed Metals and Mining Companies | 1.45x |
| United States of America Market PB Ratio | Median Figure of 5,240 Publicly-Listed Companies | 1.81x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:CMC Share Price ÷ Book Value per Share (both in USD) = 18.11 ÷ 13.26 |
1.37x |
* Primary Listing of Commercial Metals.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Commercial Metals is good value based on assets compared to the US Metals and Mining industry average.
Value checks
We assess Commercial Metals's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check) Commercial Metals has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Commercial Metals's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Commercial Metals's earnings growth is expected to exceed the United States of America market average.
- Commercial Metals's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:CMC Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts | 15.9% |
| NYSE:CMC Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts | 2.1% |
| United States of America Metals and Mining Industry Earnings Growth Rate | Market Cap Weighted Average | 18% |
| United States of America Metals and Mining Industry Revenue Growth Rate | Market Cap Weighted Average | 5.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.1% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.5% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-08-31 | 439 | |||
| 2021-08-31 | 6,066 | 505 | 209 | 4 |
| 2020-08-31 | 6,126 | 456 | 263 | 10 |
| 2019-08-31 | 5,921 | 245 | 205 | 9 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-05-31 | 5,594 | 271 | 164 |
| 2019-02-28 | 5,193 | -11 | 128 |
| 2018-11-30 | 4,845 | -79 | 123 |
| 2018-08-31 | 4,644 | 159 | 135 |
| 2018-05-31 | 4,419 | -175 | 74 |
| 2018-02-28 | 4,260 | -21 | 63 |
| 2017-11-30 | 4,068 | 55 | 76 |
| 2017-08-31 | 3,844 | 174 | 50 |
| 2017-05-31 | 3,536 | 99 | 47 |
| 2017-02-28 | 3,718 | 266 | 50 |
| 2016-11-30 | 3,876 | 366 | 38 |
| 2016-08-31 | 3,596 | 587 | 62 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
All data from Commercial Metals Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-08-31 | ||||
| 2021-08-31 | 1.76 | 1.76 | 1.76 | 1.00 |
| 2020-08-31 | 2.13 | 2.70 | 1.75 | 6.00 |
| 2019-08-31 | 1.68 | 1.81 | 1.56 | 5.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-05-31 | 1.40 |
| 2019-02-28 | 1.09 |
| 2018-11-30 | 1.05 |
| 2018-08-31 | 1.16 |
| 2018-05-31 | 0.63 |
| 2018-02-28 | 0.54 |
| 2017-11-30 | 0.66 |
| 2017-08-31 | 0.43 |
| 2017-05-31 | 0.40 |
| 2017-02-28 | 0.44 |
| 2016-11-30 | 0.33 |
| 2016-08-31 | 0.54 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Commercial Metals's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Commercial Metals has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Commercial Metals performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Commercial Metals's year on year earnings growth rate has been positive over the past 5 years.
- Commercial Metals's 1-year earnings growth exceeds its 5-year average (122.1% vs 3.7%)
- Commercial Metals's earnings growth has exceeded the US Metals and Mining industry average in the past year (122.1% vs 25.8%).
Earnings and Revenue History
All data from Commercial Metals Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-05-31 | 5,594.44 | 164.16 | 426.85 | |
| 2019-02-28 | 5,193.05 | 127.93 | 401.61 | |
| 2018-11-30 | 4,844.53 | 122.79 | 422.56 | |
| 2018-08-31 | 4,643.72 | 135.24 | 401.45 | |
| 2018-05-31 | 4,419.42 | 73.91 | 411.53 | |
| 2018-02-28 | 4,259.64 | 63.15 | 390.38 | |
| 2017-11-30 | 4,067.67 | 76.36 | 388.54 | |
| 2017-08-31 | 3,844.07 | 50.18 | 387.35 | |
| 2017-05-31 | 3,535.51 | 46.55 | 385.73 | |
| 2017-02-28 | 3,718.19 | 50.10 | 407.70 | |
| 2016-11-30 | 3,875.59 | 37.95 | 407.58 | |
| 2016-08-31 | 3,596.07 | 62.00 | 383.75 | |
| 2016-05-31 | 4,813.44 | 83.84 | 420.61 | |
| 2016-02-29 | 5,092.05 | 87.88 | 416.12 | |
| 2015-11-30 | 5,463.47 | 90.50 | 431.80 | |
| 2015-08-31 | 5,424.41 | 63.00 | 414.09 | |
| 2015-05-31 | 6,414.42 | 124.55 | 441.94 | |
| 2015-02-28 | 6,647.01 | 109.87 | 453.00 | |
| 2014-11-30 | 6,853.35 | 118.54 | 449.65 | |
| 2014-08-31 | 6,790.44 | 117.61 | 444.94 | |
| 2014-05-31 | 6,651.99 | 75.15 | 443.97 | |
| 2014-02-28 | 6,665.94 | 69.05 | 444.30 | |
| 2013-11-30 | 6,757.14 | 50.84 | 452.68 | |
| 2013-08-31 | 6,601.07 | 104.72 | 439.57 | |
| 2013-05-31 | 6,896.80 | 89.83 | 474.26 | |
| 2013-02-28 | 7,150.98 | 110.53 | 470.58 | |
| 2012-11-30 | 7,419.07 | 134.43 | 479.83 | |
| 2012-08-31 | 7,656.38 | 210.54 | 481.75 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Commercial Metals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Commercial Metals used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.
- Commercial Metals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Commercial Metals's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Commercial Metals has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Commercial Metals's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Commercial Metals's finances.
The net worth of a company is the difference between its assets and liabilities.
- Commercial Metals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Commercial Metals's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Commercial Metals Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-05-31 | 1,564.20 | 1,361.76 | 120.32 |
| 2019-02-28 | 1,498.50 | 1,399.05 | 66.74 |
| 2018-11-30 | 1,489.03 | 1,336.91 | 52.35 |
| 2018-08-31 | 1,493.58 | 1,158.37 | 622.47 |
| 2018-05-31 | 1,452.90 | 1,158.98 | 600.44 |
| 2018-02-28 | 1,451.47 | 818.79 | 195.18 |
| 2017-11-30 | 1,434.97 | 825.03 | 130.21 |
| 2017-08-31 | 1,400.93 | 824.76 | 252.60 |
| 2017-05-31 | 1,418.09 | 1,063.90 | 275.78 |
| 2017-02-28 | 1,362.02 | 1,064.34 | 395.55 |
| 2016-11-30 | 1,330.09 | 1,068.37 | 465.17 |
| 2016-08-31 | 1,367.43 | 1,071.42 | 517.54 |
| 2016-05-31 | 1,363.46 | 1,079.95 | 483.86 |
| 2016-02-29 | 1,348.80 | 1,098.34 | 381.68 |
| 2015-11-30 | 1,366.18 | 1,317.58 | 637.19 |
| 2015-08-31 | 1,381.37 | 1,343.92 | 485.32 |
| 2015-05-31 | 1,353.29 | 1,460.64 | 381.01 |
| 2015-02-28 | 1,311.44 | 1,542.59 | 313.00 |
| 2014-11-30 | 1,339.11 | 1,435.06 | 326.08 |
| 2014-08-31 | 1,348.59 | 1,426.39 | 434.93 |
| 2014-05-31 | 1,350.65 | 1,404.71 | 437.21 |
| 2014-02-28 | 1,335.92 | 1,409.30 | 431.75 |
| 2013-11-30 | 1,323.15 | 1,422.94 | 515.47 |
| 2013-08-31 | 1,270.16 | 1,402.30 | 378.77 |
| 2013-05-31 | 1,281.72 | 1,515.32 | 453.27 |
| 2013-02-28 | 1,296.88 | 1,291.92 | 170.10 |
| 2012-11-30 | 1,308.36 | 1,326.36 | 271.40 |
| 2012-08-31 | 1,246.51 | 1,281.74 | 262.42 |
- Commercial Metals's level of debt (87.1%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (104% vs 87.1% today).
- Debt is not well covered by operating cash flow (19.9%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).
Financial health checks
We assess Commercial Metals's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Commercial Metals has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Commercial Metals's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Commercial Metals
shares you are expected to receive
$53
in your first year as a dividend.
Dividend Amount
- Commercial Metals's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
- Commercial Metals's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| United States of America Metals and Mining Industry Average Dividend Yield | Market Cap Weighted Average of 31 Stocks | 2.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2017 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-08-31 | ||
| 2021-08-31 | 0.48 | 5.00 |
| 2020-08-31 | 0.48 | 10.00 |
| 2019-08-31 | 0.48 | 10.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-06-19 | 0.480 | 2.756 |
| 2019-01-03 | 0.480 | 2.943 |
| 2018-06-20 | 0.480 | 2.405 |
| 2018-03-21 | 0.480 | 2.175 |
| 2018-01-03 | 0.480 | 1.945 |
| 2017-10-24 | 0.480 | 2.413 |
| 2017-06-21 | 0.480 | 2.526 |
| 2017-03-22 | 0.480 | 2.598 |
| 2017-01-04 | 0.480 | 2.327 |
| 2016-10-25 | 0.480 | 2.336 |
| 2016-06-22 | 0.480 | 2.971 |
| 2016-03-23 | 0.480 | 2.784 |
| 2016-01-04 | 0.480 | 3.348 |
| 2015-10-28 | 0.480 | 3.326 |
| 2015-06-29 | 0.480 | 3.121 |
| 2015-06-25 | 0.480 | 2.831 |
| 2015-03-31 | 0.480 | 2.943 |
| 2015-03-26 | 0.480 | 3.037 |
| 2015-01-09 | 0.480 | 3.324 |
| 2015-01-06 | 0.480 | 3.354 |
| 2014-06-27 | 0.480 | 2.857 |
| 2014-03-27 | 0.480 | 2.583 |
| 2014-01-07 | 0.480 | 2.471 |
| 2013-10-23 | 0.480 | 2.493 |
| 2013-06-27 | 0.480 | 3.032 |
| 2013-03-28 | 0.480 | 3.262 |
| 2013-01-07 | 0.480 | 2.937 |
| 2012-10-24 | 0.480 | 3.419 |
| 2012-06-27 | 0.480 | 3.617 |
| 2012-03-28 | 0.480 | 3.662 |
| 2012-01-06 | 0.480 | 3.464 |
| 2011-10-07 | 0.480 | 3.746 |
| 2011-06-21 | 0.480 | 4.011 |
| 2011-03-18 | 0.480 | 3.090 |
| 2010-12-13 | 0.480 | 2.878 |
| 2010-09-23 | 0.480 | 3.242 |
| 2010-06-17 | 0.480 | 3.455 |
| 2010-03-18 | 0.480 | 3.122 |
| 2009-09-23 | 0.480 | 2.974 |
| 2009-06-18 | 0.480 | 2.840 |
| 2009-03-11 | 0.480 | 3.402 |
| 2008-12-12 | 0.480 | 4.195 |
| 2008-09-16 | 0.480 | 4.331 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- No dividend growth in 10 years.
Current Payout to shareholders
What portion of
Commercial Metals's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.9x coverage).
- Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
Income/ dividend checks
We assess Commercial Metals's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Commercial Metals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Commercial Metals has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $8,777,497 |
| AGE | 60 |
| TENURE AS CEO | 1.8 years |
CEO Bio
Ms. Barbara R. Smith 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 of Commercial Metals Company since January 11, 2018. She served as Chief Operating Officer of Commercial Metals Company (CMC) from January 18, 2016 to September 1, 2017. She joined Commercial Metals Company in 2011. Ms. Smith served as Chief Financial Officer and Senior Vice President at Commercial Metals Company (CMC) from May 2011 to January 18, 2016. Ms. Smith has an experience in international and North American business activities and substantial financial experience gained at Alcoa Inc., where she served various financial roles including Group Chief Financial Officer for Aerospace, Automotive and Commercial Transportation Group, Vice President & Chief Financial Officer for Alcoa Fujikura Ltd., and Director of Internal Audit. Prior to joining CMC in May 2011, Ms. Smith served as the Chief Financial Officer, Assistant Secretary and Vice President of Finance for Gusap Partners, a subsidiary of Gerdau Ameristeel Corp. since August 2007. Ms. Smith served as the Chief Financial Officer, Vice President of Finance and Assistant Secretary of Gerdau AmeriSteel Corp. since July 31, 2007 to May 2011. Previously, she served as Assistant Vice President, Treasurer and Director, Finance & Planning of Gerdau AmeriSteel Corp. from August 1, 2006 to July 31, 2007. Ms. Smith served as the Chief Financial Officer of Faro Technologies Inc. from February 21, 2005 to July 2006. She also served as Senior Vice President of Faro Technologies Inc. from February 2005 to July 2006 and its Principal Accounting Officer until July 2006. Ms. Smith served as Vice President of Finance of Alcoa's (AA-NYSE) aerospace, automotive and commercial transportation group, Cleveland, Ohio. Ms. Smith has held senior financial management positions at Alcoa since 1993, after joining that company in 1981. She served as the Vice President of Sales & Marketing at Avvaa World Health Care Products Inc. She has been Director of Comerica Incorporated since November 7, 2017. She has been Director of Commercial Metals Company since September 1, 2017. She serves as a Director of Commercial Metals Pty Ltd and has been Director of Comerica Bank since January 2018. She served as a Director of Minerals Technologies Inc. since May 01, 2011 until July 3, 2017. She also earned the title of a certified public accountant from the State of Tennessee. Ms. Smith received a Bachelor of Science in Accounting degree from Purdue University, West Lafayette, Indiana.
CEO Compensation
- Barbara's compensation has been consistent with company performance over the past year, both up more than 20%.
- Barbara's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Commercial Metals management team in years:
- The tenure for the Commercial Metals management team is about average.
Management Team
Barbara Smith
Chairman
$9M
60
1.8 yrs
Mary Lindsey
Senior VP & CFO
$3M
64
3.5 yrs
Tracy Porter
Executive VP & COO
$4M
62
1.3 yrs
Paul Kirkpatrick
VP, General Counsel & Corporate Secretary
$2M
48
5.8 yrs
Adam Hickey
VP & Chief Accounting Officer
44
2.5 yrs
Stephen Weaver
Vice President of Human Resources
Steve Henderson
VP & Chief Supply Chain Officer
Jerzy Kozicz
Managing Director of CMC Poland
Board of Directors Tenure
Average tenure and age of the Commercial Metals board of directors in years:
- The tenure for the Commercial Metals board of directors is about average.
Board of Directors
Rhys Best
Independent Director
$222K
73
9.5 yrs
Barbara Smith
Chairman
$9M
60
1.5 yrs
Sarah Raiss
Independent Director
$226K
62
8.5 yrs
Joseph Winkler
Independent Director
$222K
68
7.1 yrs
Rick Mills
Independent Director
$235K
72
7.5 yrs
Richard Kelson
Lead Director
$255K
72
J. Smith
Independent Director
$220K
70
15.5 yrs
Vicki Avril
Independent Director
$225K
65
5.5 yrs
Charlie Szews
Independent Director
$225K
62
5.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 17. Jan 19 | Buy | Mary Lindsey | Individual | 16. Jan 19 | 16. Jan 19 | 1,000 | $15.92 | $15,920 | ||
Management checks
We assess Commercial Metals's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Commercial Metals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Commercial Metals Company (NYSE:CMC): What Does Its Beta Value Mean For Your Portfolio?
Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. … What this means for you: Beta only tells us that the Commercial Metals share price is sensitive to broader market movements.
Simply Wall St - – Full articleIs Commercial Metals Company (NYSE:CMC) Undervalued After Accounting For Its Future Growth?
Commercial Metals Company (NYSE:CMC) closed yesterday at $15.12, which left some investors asking whether the high earnings potential can still be justified at this price. … Commercial Metals is poised for extremely high earnings growth in the near future. … But, to properly examine the value of a high-growth stock such as Commercial Metals, we must reflect its earnings growth into the valuation.
Simply Wall St - – Full articleWhat Can We Learn From Commercial Metals Company’s (NYSE:CMC) Investment Returns?
Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Commercial Metals: 0.091 = US$270m ÷ (US$3.7b - US$752m) (Based on the trailing twelve months to February 2019.) So, Commercial Metals has an ROCE of 9.1%. … How Commercial Metals's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.
Simply Wall St - – Full articleDid Changing Sentiment Drive Commercial Metals's (NYSE:CMC) Share Price Down By 38%?
Investors in Commercial Metals Company (NYSE:CMC) have tasted that bitter downside in the last year, as the share price dropped 38%. … Investors should note that there's a difference between Commercial Metals's total shareholder return (TSR) and its share price change, which we've covered above. … Dividends have been really beneficial for Commercial Metals shareholders, and that cash payout explains why its total shareholder loss of 36%, over the last year, isn't as bad as the share price return.
Simply Wall St - – Full articleEstimating The Fair Value Of Commercial Metals Company (NYSE:CMC)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Commercial Metals Company (NYSE:CMC) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $-271.80 $277.37 $226.50 $225.00 $225.80 $228.20 $231.78 $236.21 $241.32 $246.94 Growth Rate Estimate Source Analyst x5 Analyst x7 Analyst x2 Analyst x1 Est @ 0.35% Est @ 1.07% Est @ 1.57% Est @ 1.91% Est @ 2.16% Est @ 2.33% Present Value ($, Millions) Discounted @ 10.81% $-245.28 $225.88 $166.46 $149.22 $135.14 $123.25 $112.97 $103.90 $95.78 $88.45 Present Value of 10-year Cash Flow (PVCF)= $955.77m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10.8%.
Simply Wall St - – Full articleCommercial Metals Company (NYSE:CMC): A Fundamentally Attractive Investment
Help shape the future of investing tools and you could win a $250 gift card! … As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.
Simply Wall St - – Full articleWhat does Commercial Metals Company's (NYSE:CMC) Balance Sheet Tell Us About Its Future?
Mid-caps stocks, like Commercial Metals Company (NYSE:CMC) with a market capitalization of US$2.1b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … CMC’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … View our latest analysis for Commercial Metals
Simply Wall St - – Full articleDon't Sell Commercial Metals Company (NYSE:CMC) Before You Read This
To keep it practical, we'll show how Commercial Metals Company's (NYSE:CMC) P/E ratio could help you assess the value on offer. … Commercial Metals has a P/E ratio of 16.16, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleOnly 4 Days Left Before Commercial Metals Company (NYSE:CMC) Will Be Trading Ex-Dividend
If you are interested in cashing in on Commercial Metals Company's (NYSE:CMC) upcoming dividend of US$0.12 per share, you only have 4 days left to buy the shares before its ex-dividend date, 04 April 2019, in time for dividends payable on the 18 April 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Commercial Metals's latest financial data to analyse its dividend attributes. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Simply Wall St - – Full articleDoes The Commercial Metals Company (NYSE:CMC) Share Price Tend To Follow The Market?
Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.
Simply Wall St - – Full articleCompany Info
Description
Commercial Metals Company manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally. It operates through four segments: Americas Recycling, Americas Mills, Americas Fabrication, and International Mill. The Americas Recycling segment processes and sells scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers. The Americas Mills segment manufactures finished long steel products, including reinforcing bars (rebars), merchant bars, light structural products, and other special sections, as well as semi-finished billets for re-rolling and forging applications. This segment sells its products to the construction, service center, transportation, steel warehousing, fabrication, energy, petrochemical, and original equipment manufacturing industries. The Americas Fabrication segment offers fabricated steel products for use primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums, and dams. The International Mill segment manufactures rebars, merchant bars, and wire rods, as well as semi-finished billets; and sells fabricated rebars, fabricated meshes, assembled rebar cages, and other rebar by-products primarily to fabricators, manufacturers, distributors, and construction companies. The company was founded in 1915 and is headquartered in Irving, Texas.
Details
| Name: | Commercial Metals Company |
| CMC | |
| Exchange: | NYSE |
| Founded: | 1915 |
| $2,135,605,722 | |
| 117,924,115 | |
| Website: | http://www.cmc.com |
| Address: |
Commercial Metals Company 6565 North MacArthur Boulevard, Suite 800, Irving, Texas, 75039, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | CMC | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | CMS | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 |
Number of employees
Current staff
Industry
| Steel | |
| Materials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/16 23:35 |
| End of day share price update: | 2019/07/16 00:00 |
| Last estimates confirmation: | 2019/07/16 |
| Last earnings filing: | 2019/06/27 |
| Last earnings reported: | 2019/05/31 |
| Last annual earnings reported: | 2018/08/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
