CMC:NYE-Commercial Metals Company (USD)

COMMON STOCK | Steel | NYE

Last Closing Price

USD 25.15

Change

-0.66 (-2.56)%

Market Cap

USD 3.10B

Volume

1.23M

Average Target Price

USD 21.33 (-15.18%)
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: 2021-02-26 )

Largest Industry Peers for Steel

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

-0.47 (-1.98%)

USD25.31B 28.94 7.43
PKX POSCO

-0.68 (-1.10%)

USD19.41B 7.16 0.00
NUE Nucor Corporation

-1.69 (-2.75%)

USD18.57B 26.06 11.17
RS Reliance Steel & Aluminum Co

-3.22 (-2.38%)

USD8.61B 23.93 12.72
SID Companhia Siderúrgica Naciona..

-0.37 (-5.95%)

USD8.52B 8.69 2.22
GGB Gerdau S.A

-0.11 (-2.35%)

USD7.44B 56.51 1.81
CLF Cleveland-Cliffs Inc

-1.07 (-7.43%)

USD7.19B 137.83 63.61
TX Ternium S.A

-1.43 (-4.45%)

USD6.31B 8.10 3.86
X United States Steel Corporatio..

-0.98 (-5.57%)

USD4.73B 2.04 37.84
SIM Grupo Simec, S.A.B. de C.V

N/A

USD2.09B 14.94 0.28

ETFs Containing CMC

Symbol Name Weight Mer Price(Change) Market Cap
RFV Invesco S&P MidCap 400 Pu.. 0.00 % 0.35 %

-0.73 (-0.87%)

USD0.07B
XME SPDR S&P Metals and Minin.. 0.00 % 0.35 %

-1.54 (-4.12%)

USD0.89B
BUYN USCF SummerHaven SHPEN In.. 0.00 % 0.80 %

N/A

USD0.55M
XMVM Invesco S&P MidCap Value .. 0.00 % 0.39 %

-0.13 (-0.33%)

USD0.09B

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 22.44% 88% B+ 87% B+
Dividend Return 0.58% 80% B- 31% F
Total Return 23.03% 88% B+ 87% B+
Trailing 12 Months  
Capital Gain 37.73% 31% F 75% C
Dividend Return 2.63% 73% C 46% F
Total Return 40.36% 31% F 76% C
Trailing 5 Years  
Capital Gain 74.29% 43% F 69% D+
Dividend Return 16.63% 64% D 52% F
Total Return 90.92% 43% F 70% C-
Average Annual (5 Year Horizon)  
Capital Gain 4.04% 60% D- 65% D
Dividend Return 2.55% 77% C+ 61% D-
Total Return 6.59% 60% D- 64% D
Risk Return Profile  
Volatility (Standard Deviation) 20.43% 73% C 40% F
Risk Adjusted Return 32.28% 87% B+ 51% F
Market Capitalization 3.10B 44% F 67% 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 11.97 67% D+ 73% C
Price/Book Ratio 1.38 40% F 60% D-
Price / Cash Flow Ratio 3.92 56% F 67% D+
EV/EBITDA 5.75 53% F 84% B
Management Effectiveness  
Return on Equity 14.27% 87% B+ 80% B-
Return on Invested Capital -176.95% 6% F 1% F
Return on Assets 6.65% 88% B+ 88% B+
Debt to Equity Ratio 54.50% 36% F 60% D-
Technical Ratios  
Short Ratio 2.25 40% F 44% F
Short Percent 3.71% 44% F 52% F
Beta 1.28 69% D+ 35% 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.

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.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it 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.

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.

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.