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Commercial Metals

NYSE:CMC
Snowflake Description

Good value with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CMC
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

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.


Add to Portfolio Compare Print
  • Commercial Metals has significant price volatility in the past 3 months.
CMC Share Price and Events
7 Day Returns
2.8%
NYSE:CMC
1.4%
US Metals and Mining
1.1%
US Market
1 Year Returns
-17.3%
NYSE:CMC
-15.9%
US Metals and Mining
4.7%
US Market
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.
Price Volatility
CMC
Industry
5yr Volatility vs Market

Value

 Is Commercial Metals undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Commercial Metals.

NYSE:CMC Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:CMC
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.

NYSE:CMC DCF 1st Stage: Next 10 year cash flow forecast
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
NYSE:CMC DCF 2nd Stage: Terminal Value
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
NYSE:CMC Total Equity Value
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
NYSE:CMC Discount to Share Price
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
Amount off the current price Commercial Metals is available for.
Intrinsic value
29%
Share price is $18.11 vs Future cash flow value of $25.37
Current Discount Checks
For Commercial Metals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
NYSE:CMC PE (Price to Earnings) Ratio Data Sources
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.

NYSE:CMC PE (Price to Earnings) Ratio Calculation
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?
Raw Data
NYSE:CMC PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

NYSE:CMC PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
NYSE:CMC PB (Price to Book) Ratio Data Sources
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
NYSE:CMC PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Commercial Metals's value by looking at:
  1. 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. )
  2. 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)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. 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

 How is Commercial Metals expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

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!
Annual Growth Rate
15.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Commercial Metals expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:CMC Future Growth Rates Data Sources
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
Raw Data
NYSE:CMC Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CMC Future Estimates Data
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
NYSE:CMC Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Commercial Metals's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
  • Commercial Metals's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CMC 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.

NYSE:CMC Future Estimates Data
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
NYSE:CMC Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Commercial Metals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Commercial Metals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Commercial Metals's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Commercial Metals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Commercial Metals Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CMC Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Commercial Metals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Commercial Metals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Commercial Metals Company Filings, last reported 1 month ago.

NYSE:CMC Past Debt and Equity Data
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).
X
Financial health checks
We assess Commercial Metals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Commercial Metals has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.65%
Current annual income from Commercial Metals dividends. Estimated to be 2.65% next year.
If you bought $2,000 of Commercial Metals shares you are expected to receive $53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:CMC Annualized Past and Future Dividends
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.

NYSE:CMC Future Dividends Estimate Data
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
NYSE:CMC Past Annualized Dividends Data
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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
X
Income/ dividend checks
We assess Commercial Metals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Commercial Metals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Barbara Smith
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:

2.5
Average Tenure
60
Average Age
  • The tenure for the Commercial Metals management team is about average.
Management Team

Barbara Smith

TITLE
Chairman
COMPENSATION
$9M
AGE
60
TENURE
1.8 yrs

Mary Lindsey

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
64
TENURE
3.5 yrs

Tracy Porter

TITLE
Executive VP & COO
COMPENSATION
$4M
AGE
62
TENURE
1.3 yrs

Paul Kirkpatrick

TITLE
VP, General Counsel & Corporate Secretary
COMPENSATION
$2M
AGE
48
TENURE
5.8 yrs

Adam Hickey

TITLE
VP & Chief Accounting Officer
AGE
44
TENURE
2.5 yrs

Stephen Weaver

TITLE
Vice President of Human Resources

Steve Henderson

TITLE
VP & Chief Supply Chain Officer

Jerzy Kozicz

TITLE
Managing Director of CMC Poland
Board of Directors Tenure

Average tenure and age of the Commercial Metals board of directors in years:

7.3
Average Tenure
68
Average Age
  • The tenure for the Commercial Metals board of directors is about average.
Board of Directors

Rhys Best

TITLE
Independent Director
COMPENSATION
$222K
AGE
73
TENURE
9.5 yrs

Barbara Smith

TITLE
Chairman
COMPENSATION
$9M
AGE
60
TENURE
1.5 yrs

Sarah Raiss

TITLE
Independent Director
COMPENSATION
$226K
AGE
62
TENURE
8.5 yrs

Joseph Winkler

TITLE
Independent Director
COMPENSATION
$222K
AGE
68
TENURE
7.1 yrs

Rick Mills

TITLE
Independent Director
COMPENSATION
$235K
AGE
72
TENURE
7.5 yrs

Richard Kelson

TITLE
Lead Director
COMPENSATION
$255K
AGE
72

J. Smith

TITLE
Independent Director
COMPENSATION
$220K
AGE
70
TENURE
15.5 yrs

Vicki Avril

TITLE
Independent Director
COMPENSATION
$225K
AGE
65
TENURE
5.5 yrs

Charlie Szews

TITLE
Independent Director
COMPENSATION
$225K
AGE
62
TENURE
5.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Jan 19 Buy Mary Lindsey Individual 16. Jan 19 16. Jan 19 1,000 $15.92 $15,920
X
Management checks
We assess Commercial Metals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Is 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 -

What 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 -

Did 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 -

Estimating 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 -

Commercial 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 -

What 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 -

Don'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 -

Only 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 -

Does 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 -

Company 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
Staff numbers
8,900
Commercial Metals employees.
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.