CMC:NYE-Commercial Metals Company (USD)

COMMON STOCK | Steel | NYE

Last Closing Price

USD 31.39

Change

+0.22 (+0.71)%

Market Cap

USD 3.76B

Volume

0.67M

Average Target Price

USD 26.33 (-16.11%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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 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. In addition, the company provides fabricated steel products used to reinforce concrete primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums, and dams; sells and rents construction-related products and equipment to concrete installers and other businesses; and manufactures and sells strength bars for the truck trailer industry, special bar steels for the energy market, and armor plates for military vehicles. Further, it manufactures rebars, merchant bars, and wire rods; and sells fabricated rebars, wire meshes, fabricated meshes, assembled rebar cages, and other fabricated rebar by-products to fabricators, manufacturers, distributors, and construction companies. The company was founded in 1915 and is headquartered in Irving, Texas.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-05-05 )

Largest Industry Peers for Steel

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
MT ArcelorMittal

+0.70 (+2.32%)

USD31.26B 28.94 8.51
NUE Nucor Corporation

+3.17 (+3.54%)

USD26.83B 16.64 9.23
PKX POSCO

+1.28 (+1.52%)

USD25.27B 18.71 0.00
SID Companhia Siderúrgica Naciona..

+0.40 (+4.47%)

USD12.29B 6.22 1.75
RS Reliance Steel & Aluminum Co

+2.45 (+1.45%)

USD10.76B 19.01 10.07
CLF Cleveland-Cliffs Inc

-0.16 (-0.79%)

USD10.17B 137.83 19.06
GGB Gerdau S.A

+0.45 (+7.48%)

USD9.59B 23.70 1.71
TX Ternium S.A

-2.72 (-6.76%)

USD7.90B 5.67 3.23
X United States Steel Corporatio..

-0.91 (-3.42%)

USD7.18B 2.04 36.74
SIM Grupo Simec, S.A.B. de C.V

-0.16 (-1.06%)

USD2.44B 11.78 0.30

ETFs Containing CMC

Symbol Name Weight Mer Price(Change) Market Cap
DES WisdomTree U.S. SmallCap .. 0.00 % 0.38 %

+0.06 (+0.18%)

USD1.83B
RFV Invesco S&P MidCap 400 Pu.. 0.00 % 0.35 %

+0.27 (+0.28%)

USD0.14B
BUYN USCF SummerHaven SHPEN In.. 0.00 % 0.80 %

N/A

USD0.55M
SQLV Legg Mason Small-Cap Qual.. 0.00 % 0.62 %

+0.05 (+0.14%)

USD0.02B
XMVM Invesco S&P MidCap Value .. 0.00 % 0.39 %

+0.32 (+0.67%)

USD0.10B

Market Performance

  Market Performance vs.
Industry/Classification (Steel)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 52.82% 73% C 93% A
Dividend Return 1.17% 75% C 55% F
Total Return 53.99% 80% B- 93% A
Trailing 12 Months  
Capital Gain 101.35% 20% F 80% B-
Dividend Return 3.08% 50% F 44% F
Total Return 104.43% 20% F 80% B-
Trailing 5 Years  
Capital Gain 79.78% 31% F 71% C-
Dividend Return 13.75% 60% D- 47% F
Total Return 93.53% 38% F 71% C-
Average Annual (5 Year Horizon)  
Capital Gain 7.43% 50% F 66% D
Dividend Return 2.56% 79% C+ 59% F
Total Return 9.99% 56% F 67% D+
Risk Return Profile  
Volatility (Standard Deviation) 27.49% 88% B+ 36% F
Risk Adjusted Return 36.35% 81% B- 52% F
Market Capitalization 3.76B 40% F 69% D+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Steel)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 14.39 71% C- 64% D
Price/Book Ratio 1.75 50% F 54% F
Price / Cash Flow Ratio 4.75 47% F 66% D
EV/EBITDA 7.33 53% F 79% C+
Management Effectiveness  
Return on Equity 13.91% 71% C- 75% C
Return on Invested Capital 11.98% 73% C 82% B-
Return on Assets 6.78% 67% D+ 87% B+
Debt to Equity Ratio 54.50% 33% F 60% D-
Technical Ratios  
Short Ratio 1.97 27% F 51% F
Short Percent 2.82% 50% F 59% F
Beta 1.33 67% D+ 34% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.