Commercial Metals
Market Cap
US$2.5b
Last Updated
2021/01/26 00:27 UTC
Data Sources
Company Financials +
Executive Summary
Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, Germany, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Commercial Metals's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CMC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: CMC's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-0.3%
CMC
-1.4%
US Metals and Mining
2.6%
US Market
1 Year Return
0.2%
CMC
47.1%
US Metals and Mining
26.0%
US Market
Return vs Industry: CMC underperformed the US Metals and Mining industry which returned 47.1% over the past year.
Return vs Market: CMC underperformed the US Market which returned 26% over the past year.
Shareholder returns
| CMC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.3% | -1.4% | 2.6% |
| 30 Day | 6.0% | 5.7% | 5.1% |
| 90 Day | 2.5% | 21.6% | 17.1% |
| 1 Year | 2.8%0.2% | 50.4%47.1% | 28.9%26.0% |
| 3 Year | -9.4%-16.0% | 21.5%13.3% | 46.3%36.6% |
| 5 Year | 77.4%56.4% | 191.0%162.6% | 126.9%101.6% |
Long-Term Price Volatility Vs. Market
How volatile is Commercial Metals's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is It Smart To Buy Commercial Metals Company (NYSE:CMC) Before It Goes Ex-Dividend?2 weeks ago | Simply Wall St
Did You Participate In Any Of Commercial Metals' (NYSE:CMC) Respectable 88% Return?3 weeks ago | Simply Wall St
How Does Commercial Metals Company (NYSE:CMC) Stand Up To These Simple Dividend Safety Checks?Valuation
Is Commercial Metals undervalued compared to its fair value and its price relative to the market?
9.76x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CMC ($21.23) is trading above our estimate of fair value ($13.6)
Significantly Below Fair Value: CMC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CMC is good value based on its PE Ratio (9.8x) compared to the US Metals and Mining industry average (20.3x).
PE vs Market: CMC is good value based on its PE Ratio (9.8x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: CMC is poor value based on its PEG Ratio (5.2x)
Price to Book Ratio
PB vs Industry: CMC is good value based on its PB Ratio (1.3x) compared to the US Metals and Mining industry average (1.7x).
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Future Growth
How is Commercial Metals forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
1.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CMC's forecast earnings growth (1.9% per year) is below the savings rate (2%).
Earnings vs Market: CMC's earnings (1.9% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: CMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: CMC's revenue (0.7% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: CMC's revenue (0.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CMC's Return on Equity is forecast to be low in 3 years time (10.7%).
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Past Performance
How has Commercial Metals performed over the past 5 years?
37.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMC has high quality earnings.
Growing Profit Margin: CMC's current net profit margins (4.7%) are higher than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: CMC's earnings have grown significantly by 37.2% per year over the past 5 years.
Accelerating Growth: CMC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CMC had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-12.4%).
Return on Equity
High ROE: CMC's Return on Equity (13.4%) is considered low.
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Financial Health
How is Commercial Metals's financial position?
Financial Position Analysis
Short Term Liabilities: CMC's short term assets ($2.2B) exceed its short term liabilities ($613.2M).
Long Term Liabilities: CMC's short term assets ($2.2B) exceed its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: CMC's debt to equity ratio (53.4%) is considered high.
Reducing Debt: CMC's debt to equity ratio has reduced from 96.1% to 53.4% over the past 5 years.
Debt Coverage: CMC's debt is well covered by operating cash flow (61.2%).
Interest Coverage: CMC's interest payments on its debt are well covered by EBIT (7x coverage).
Balance Sheet
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Dividend
What is Commercial Metals's current dividend yield, its reliability and sustainability?
2.26%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CMC's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: CMC's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: CMC's dividends per share have been stable in the past 10 years.
Growing Dividend: CMC's dividend payments have not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.1%), CMC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CMC's dividends in 3 years are forecast to be well covered by earnings (25.7% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Barbara Smith (61 yo)
3.33yrs
Tenure
US$9,038,341
Compensation
Ms. Barbara R. Smith, CPA., has been the President and Chief Executive Officer of Commercial Metals Company (CMC) since January 11, 2017 and September 1, 2017 respectively. Ms. Smith has been the Chairman ...
CEO Compensation Analysis
Compensation vs Market: Barbara's total compensation ($USD9.04M) is above average for companies of similar size in the US market ($USD5.01M).
Compensation vs Earnings: Barbara's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.33yrs | US$9.04m | 0.44% $ 11.2m | |
| VP & CFO | 1.33yrs | US$2.30m | 0.029% $ 747.1k | |
| Executive VP & COO | 2.75yrs | US$4.25m | 0.21% $ 5.3m | |
| VP, General Counsel & Corporate Secretary | 0.92yr | US$644.96k | 0.0058% $ 148.4k | |
| Vice President of Human Resources | 1yr | US$619.68k | 0.0042% $ 108.1k | |
| VP & Chief Accounting Officer | 4yrs | no data | 0.029% $ 748.7k | |
| Vice President of Marketing & Enterprise Support | 1yr | no data | no data | |
| Managing Director of CMC Poland | no data | no data | no data | |
| VP & Chief Supply Chain Officer | no data | no data | no data | |
| Vice President of East Region | no data | no data | no data |
1.3yrs
Average Tenure
47.5yo
Average Age
Experienced Management: CMC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.33yrs | US$9.04m | 0.44% $ 11.2m | |
| Independent Lead Director | 2yrs | US$275.00k | 0.057% $ 1.5m | |
| Independent Director | 11yrs | US$245.00k | 0.077% $ 2.0m | |
| Independent Director | 11yrs | US$242.04k | 0.0098% $ 250.8k | |
| Independent Director | 7yrs | US$252.27k | 0.040% $ 1.0m | |
| Independent Director | 10yrs | US$243.20k | 0.060% $ 1.5m | |
| Independent Director | 17yrs | US$247.00k | 0.082% $ 2.1m | |
| Independent Director | 7yrs | US$245.46k | 0.027% $ 691.8k | |
| Independent Director | 1yr | US$98.09k | 0.0075% $ 191.7k | |
| Independent Director | 1yr | US$202.50k | 0.0089% $ 225.6k |
7.0yrs
Average Tenure
64.5yo
Average Age
Experienced Board: CMC's board of directors are considered experienced (7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CMC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Commercial Metals Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Commercial Metals Company
- Ticker: CMC
- Exchange: NYSE
- Founded: 1915
- Industry: Steel
- Sector: Materials
- Market Cap: US$2.549b
- Shares outstanding: 120.07m
- Website: https://www.cmc.com
Number of Employees
Location
- Commercial Metals Company
- 6565 North MacArthur Boulevard
- Suite 800
- Irving
- Texas
- 75039
- United States
Listings
| 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 |
| CMS | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
Biography
Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, Germany, and internationally. The company ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 00:27 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/11/30 |
| Annual Earnings | 2020/08/31 |
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.