CMC Stock Overview
Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally.
Commercial Metals Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$36.07|
|52 Week High||US$46.68|
|52 Week Low||US$28.77|
|1 Month Change||-12.77%|
|3 Month Change||-12.71%|
|1 Year Change||17.11%|
|3 Year Change||99.95%|
|5 Year Change||80.80%|
|Change since IPO||1,648.84%|
Recent News & Updates
Commercial Metals Company: Risks Of A Recession Outweigh The Rewards
Commercial Metals Company has been posting promising results for the past few quarters, especially with the support of rising steel prices. The company has been improving its profitability but there is still a lot of room for improvement. Steel prices are precedented to tank in times of economic crisis and have recently started falling amid looming threats of a recession. If the recession hits and steel prices steeply decline, CMC stock will be seriously affected, making me rate the stock as a "HOLD."
|CMC||US Metals and Mining||US Market|
Return vs Industry: CMC exceeded the US Metals and Mining industry which returned -9% over the past year.
Return vs Market: CMC exceeded the US Market which returned -18.4% over the past year.
|CMC Average Weekly Movement||6.7%|
|Metals and Mining Industry Average Movement||9.9%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||3.2%|
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.
About the Company
Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. The company processes and sells ferrous and nonferrous 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. It also manufactures and sells finished long steel products, including rebar, merchant bar, light structural, and other special sections, as well as semi-finished billets for re-rolling and forging applications.
Commercial Metals Fundamentals Summary
|CMC fundamental statistics|
Is CMC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CMC income statement (TTM)|
|Cost of Revenue||US$6.84b|
Last Reported Earnings
May 31, 2022
Next Earnings Date
|Earnings per share (EPS)||8.97|
|Net Profit Margin||12.66%|
How did CMC perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
Does CMC pay a reliable dividends?See CMC dividend history and benchmarks
|Commercial Metals dividend dates|
|Ex Dividend Date||Jun 28 2022|
|Dividend Pay Date||Jul 13 2022|
|Days until Ex dividend||0 days|
|Days until Dividend pay date||15 days|
Does CMC pay a reliable dividends?See CMC dividend history and benchmarks
Is CMC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CMC?
Other financial metrics that can be useful for relative valuation.
|What is CMC's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does CMC's PE Ratio compare to its peers?
|CMC PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
X United States Steel
SIM Grupo Simec. de
WOR Worthington Industries
CMC Commercial Metals
Price-To-Earnings vs Peers: CMC is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (4.7x).
Price to Earnings Ratio vs Industry
How does CMC's PE Ratio compare vs other companies in the US Metals and Mining Industry?
Price-To-Earnings vs Industry: CMC is good value based on its Price-To-Earnings Ratio (4x) compared to the US Metals and Mining industry average (8.1x)
Price to Earnings Ratio vs Fair Ratio
What is CMC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||4x|
|Fair PE Ratio||6.3x|
Price-To-Earnings vs Fair Ratio: CMC is good value based on its Price-To-Earnings Ratio (4x) compared to the estimated Fair Price-To-Earnings Ratio (6.3x).
Share Price vs Fair Value
What is the Fair Price of CMC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CMC ($36.07) is trading below our estimate of fair value ($51.07)
Significantly Below Fair Value: CMC is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: CMC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Discover undervalued companies
How is Commercial Metals forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (-33% per year).
Earnings vs Market: CMC's earnings are forecast to decline over the next 3 years (-33% per year).
High Growth Earnings: CMC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CMC's revenue is expected to decline over the next 3 years (-7.2% per year).
High Growth Revenue: CMC's revenue is forecast to decline over the next 3 years (-7.2% 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 (13.7%).
Discover growth companies
How has Commercial Metals performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMC has a high level of non-cash earnings.
Growing Profit Margin: CMC's current net profit margins (12.7%) are higher than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: CMC's earnings have grown significantly by 50.7% per year over the past 5 years.
Accelerating Growth: CMC's earnings growth over the past year (229.2%) exceeds its 5-year average (50.7% per year).
Earnings vs Industry: CMC earnings growth over the past year (229.2%) exceeded the Metals and Mining industry 94.3%.
Return on Equity
High ROE: CMC's Return on Equity (34.4%) is considered high.
Discover strong past performing companies
How is Commercial Metals's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CMC's short term assets ($3.4B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: CMC's short term assets ($3.4B) exceed its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: CMC's net debt to equity ratio (34.2%) is considered satisfactory.
Reducing Debt: CMC's debt to equity ratio has reduced from 74.8% to 47.2% over the past 5 years.
Debt Coverage: CMC's debt is well covered by operating cash flow (25.3%).
Interest Coverage: CMC's interest payments on its debt are well covered by EBIT (24.5x coverage).
Discover healthy companies
What is Commercial Metals's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CMC's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: CMC's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Stability and Growth of Payments
Stable Dividend: CMC's dividends per share have been stable in the past 10 years.
Growing Dividend: CMC's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (6.1%), CMC's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (271.3%), CMC's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Barbara Smith (62 yo)
Ms. Barbara R. Smith, CPA., has been the President and Chief Executive Officer of Commercial Metals Company (CMC) since January 11, 2017 and September 1, 2017 respectively. Ms. Smith has been the Chairman...
CEO Compensation Analysis
Compensation vs Market: Barbara's total compensation ($USD9.05M) is above average for companies of similar size in the US market ($USD6.87M).
Compensation vs Earnings: Barbara's compensation has been consistent with company performance over the past year.
Experienced Management: CMC's management team is considered experienced (2.4 years average tenure).
Experienced Board: CMC's board of directors are considered experienced (4.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CMC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Commercial Metals Company's employee growth, exchange listings and data sources
- Name: Commercial Metals Company
- Ticker: CMC
- Exchange: NYSE
- Founded: 1915
- Industry: Steel
- Sector: Materials
- Implied Market Cap: US$4.346b
- Shares outstanding: 120.49m
- Website: https://www.cmc.com
Number of Employees
- Commercial Metals Company
- 6565 North MacArthur Boulevard
- Suite 800
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/27 00:00|
|End of Day Share Price||2022/06/27 00:00|
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.