Commercial Metals
Market Cap
US$2.4b
Last Updated
2020/02/20 23:50 UTC
Data Sources
Company Financials +
Executive Summary
Commercial Metals Company manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -10.4% per year for the next 3 years
Snowflake Analysis
Undervalued with solid track record and pays a dividend.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.7%
CMC
1.1%
US Metals and Mining
0.06%
US Market
1 Year Return
22.1%
CMC
-1.9%
US Metals and Mining
19.3%
US Market
Return vs Industry: CMC exceeded the US Metals and Mining industry which returned -1.9% over the past year.
Return vs Market: CMC exceeded the US Market which returned 19.3% over the past year.
Shareholder returns
| CMC | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | 1.1% | 0.06% |
| 30 Day | -4.6% | -3.4% | 1.7% |
| 90 Day | 0.05% | 0.4% | 9.0% |
| 1 Year | 25.1%22.1% | 0.6%-1.9% | 21.8%19.3% |
| 3 Year | 7.6%0% | -0.8%-6.1% | 49.5%39.9% |
| 5 Year | 52.8%33.8% | 20.9%11.6% | 73.1%54.1% |
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
3 weeks ago | Simply Wall St
Commercial Metals (NYSE:CMC) Shareholders Have Enjoyed A 47% Share Price Gain1 month ago | Simply Wall St
Do Commercial Metals's (NYSE:CMC) Earnings Warrant Your Attention?1 month ago | Simply Wall St
Here's What We Like About Commercial Metals Company (NYSE:CMC)'s Upcoming DividendValuation
Is Commercial Metals undervalued compared to its fair value and its price relative to the market?
33.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CMC ($20.56) is trading below our estimate of fair value ($30.8)
Significantly Below Fair Value: CMC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CMC is good value based on its PE Ratio (9.3x) compared to the Metals and Mining industry average (11.1x).
PE vs Market: CMC is good value based on its PE Ratio (9.3x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: CMC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CMC is good value based on its PB Ratio (1.4x) compared to the US Metals and Mining industry average (1.5x).
Next Steps
Future Growth
How is Commercial Metals forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-10.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CMC's earnings are forecast to decline over the next 3 years (-10.4% per year).
Earnings vs Market: CMC's earnings are forecast to decline over the next 3 years (-10.4% per year).
High Growth Earnings: CMC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CMC's revenue (2.7% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CMC's revenue (2.7% 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 (12.4%).
Next Steps
Past Performance
How has Commercial Metals performed over the past 5 years?
17.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMC has high quality earnings.
Growing Profit Margin: CMC's current net profit margins (4.4%) are higher than last year (2.5%).
Past Earnings Growth Analysis
Earnings Trend: CMC's earnings have grown by 17.6% per year over the past 5 years.
Accelerating Growth: CMC's earnings growth over the past year (113.5%) exceeds its 5-year average (17.6% per year).
Earnings vs Industry: CMC earnings growth over the past year (113.5%) exceeded the Metals and Mining industry -17.7%.
Return on Equity
High ROE: CMC's Return on Equity (15.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Commercial Metals's financial position?
Financial Position Analysis
Short Term Liabilities: CMC's short term assets ($2.0B) exceed its short term liabilities ($602.0M).
Long Term Liabilities: CMC's short term assets ($2.0B) exceed its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: CMC's debt to equity ratio (67.8%) is considered high.
Reducing Debt: CMC's debt to equity ratio has reduced from 107.3% to 67.8% over the past 5 years.
Debt Coverage: CMC's debt is well covered by operating cash flow (46.9%).
Interest Coverage: CMC's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Inventory Level: CMC has a high level of physical assets or inventory.
Debt Coverage by Assets: CMC's debt is covered by short term assets (assets are 1.7x debt).
Next Steps
Dividend
What is Commercial Metals's current dividend yield, its reliability and sustainability?
2.33%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CMC's dividend (2.33%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CMC's dividend (2.33%) is low compared to the top 25% of dividend payers in the US market (3.71%).
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 (21.6%), 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 (21.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Barbara Smith (60yo)
2.4yrs
Tenure
US$7,648,588
Compensation
Ms. Barbara R. Smith has been the President and Chief Executive Officer of Commercial Metals Company (CMC) since January 11, 2017 and September 1, 2017 respectively. Ms. Smith has been the Chairman of Comm ...
CEO Compensation Analysis
Compensation vs Market: Barbara's total compensation ($USD7.65M) is above average for companies of similar size in the US market ($USD4.88M).
Compensation vs Earnings: Barbara's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.4yrs | US$7.65m | 0.36% $8.9m | |
| VP & CFO | 0.4yrs | US$1.33m | 0.016% $383.7k | |
| Executive VP & COO | 1.8yrs | US$3.70m | 0.24% $6.0m | |
| Executive Officer | 0yrs | US$1.85m | 0.098% $2.4m | |
| VP & Chief Accounting Officer | 3.1yrs | no data | 0.020% $477.9k | |
| Vice President of Human Resources | 0.08yrs | no data | no data | |
| VP & Chief Supply Chain Officer | 0yrs | no data | no data | |
| Managing Director of CMC Poland | 0yrs | no data | no data | |
| VP & Chief Supply Chain Officer | 0yrs | no data | no data |
1.8yrs
Average Tenure
49yo
Average Age
Experienced Management: CMC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.4yrs | US$7.65m | 0.36% $8.9m | |
| Lead Director | 0yrs | US$245.92k | 0.053% $1.3m | |
| Independent Director | 10.1yrs | US$224.17k | 0.074% $1.8m | |
| Independent Director | 10.1yrs | US$236.43k | 0.010% $242.7k | |
| Independent Director | 8.1yrs | US$235.00k | 0.012% $286.1k | |
| Independent Director | 6.1yrs | US$225.00k | 0.036% $887.2k | |
| Independent Director | 9.1yrs | US$220.55k | 0.047% $1.1m | |
| Independent Director | 16.1yrs | US$225.07k | 0.078% $1.9m | |
| Independent Director | 6.1yrs | US$221.37k | 0.019% $451.5k | |
| Director | 0.08yrs | no data | no data |
8.1yrs
Average Tenure
66.5yo
Average Age
Experienced Board: CMC's board of directors are considered experienced (8.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
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$2.439b
- Shares outstanding: 118.65m
- Website: https://www.cmc.com/en/asia/home
Number of Employees
Location
- Commercial Metals Company
- 6565 North MacArthur Boulevard
- Suite 800
- Irving
- Texas
- 75039
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CMC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| CMS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 23:50 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/08/31 |
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.