(CMC) Commercial Metals - Overview
Sector: Industrials | Industry: Metal Fabrication | Exchange: NYSE (USA) | Market Cap: 7.901m USD | Total Return: 55.8% in 12m
Avg Turnover: 57.4M
EPS Trend: -73.8%
Qual. Beats: -1
Rev. Trend: -69.2%
Qual. Beats: 3
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Commercial Metals Company (CMC) is a vertically integrated manufacturer and recycler of steel and metal products, operating primarily in North America and Europe. The company manages a circular supply chain by processing ferrous and nonferrous scrap metal into finished long steel products, including rebar, merchant bar, and specialized structural sections. Its business model relies heavily on the mini-mill process, which utilizes electric arc furnaces (EAF) to melt scrap metal, a method typically more energy-efficient and flexible than traditional blast furnace production.
The firm serves diverse end-markets such as commercial construction, infrastructure, energy, and defense. Its product portfolio includes fabricated rebar for large-scale civil engineering projects, armor plates for military vehicles, and specialty steel for the truck trailer industry. As a key player in the steel sector, CMC’s performance is closely linked to regional construction spending and the global supply-demand balance of scrap metal. To better understand how these industrial trends affect valuation, consider reviewing the detailed metrics available on ValueRay.
Founded in 1915 and headquartered in Irving, Texas, CMC maintains a global footprint with significant operations in Poland and China. The company’s integrated structure allows it to capture margins across the entire value chain, from raw material collection and processing to the distribution of finished construction components and equipment rentals.
- Domestic infrastructure spending levels drive demand for fabricated rebar and steel products
- Scrap metal price volatility impacts raw material costs and consolidated profit margins
- European energy costs and industrial output influence Poland-based steel manufacturing profitability
- Non-residential construction activity determines volume for North American long steel segments
- Geotechnical and highway project funding fluctuates based on federal and state budgets
| Net Income: 505.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -2.27 > 1.0 |
| NWC/Revenue: 22.58% < 20% (prev 26.09%; Δ -3.51% < -1%) |
| CFO/TA 0.09 > 3% & CFO 840.1m > Net Income 505.2m |
| Net Debt (2.90b) to EBITDA (1.02b): 2.83 < 3 |
| Current Ratio: 2.38 > 1.5 & < 3 |
| Outstanding Shares: last quarter (112.1m) vs 12m ago -2.12% < -2% |
| Gross Margin: 17.74% > 18% (prev 0.15%; Δ 1.76k% > 0.5%) |
| Asset Turnover: 103.2% > 50% (prev 115.7%; Δ -12.47% > 0%) |
| Interest Coverage Ratio: 7.93 > 6 (EBITDA TTM 1.02b / Interest Expense TTM 88.8m) |
| A: 0.20 (Total Current Assets 3.26b - Total Current Liabilities 1.37b) / Total Assets 9.56b |
| B: 0.50 (Retained Earnings 4.74b / Total Assets 9.56b) |
| C: 0.09 (EBIT TTM 704.2m / Avg Total Assets 8.13b) |
| D: 0.92 (Book Value of Equity 4.73b / Total Liabilities 5.16b) |
| Altman-Z'' = 4.46 = AA |
| DSRI: 1.08 (Receivables 1.28b/1.09b, Revenue 8.39b/7.74b) |
| GMI: 0.87 (GM 17.74% / 15.39%) |
| AQI: 2.27 (AQ_t 0.32 / AQ_t-1 0.14) |
| SGI: 1.08 (Revenue 8.39b / 7.74b) |
| TATA: -0.04 (NI 505.2m - CFO 840.1m) / TA 9.56b) |
| Beneish M = -2.30 (Cap -4..+1) = BBB |
As of May 24, 2026, the stock is trading at USD 70.70 with a total of 612,368 shares traded.
Over the past week, the price has changed by +0.91%,
over one month by +3.39%,
over three months by -4.63% and
over the past year by +55.82%.
Commercial Metals has received a consensus analysts rating of 3.45. Therefore, it is recommended to hold CMC.
- StrongBuy: 2
- Buy: 1
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 78.8 | 11.5% |
P/E Forward = 10.7643
P/S = 0.942
P/B = 1.7858
P/EG = 12.2526
Revenue TTM = 8.39b USD
EBIT TTM = 704.2m USD
EBITDA TTM = 1.02b USD
Long Term Debt = 3.31b USD (from longTermDebt, last quarter)
Short Term Debt = 52.6m USD (from shortTermDebt, last quarter)
Debt = 3.39b USD (from shortLongTermDebtTotal, last quarter) + Leases 28.3m
Net Debt = 2.90b USD (calculated: Debt 3.39b - CCE 495.0m)
Enterprise Value = 10.8b USD (7.90b + Debt 3.39b - CCE 495.0m)
Interest Coverage Ratio = 7.93 (Ebit TTM 704.2m / Interest Expense TTM 88.8m)
EV/FCF = 27.43x (Enterprise Value 10.8b / FCF TTM 393.6m)
FCF Yield = 3.65% (FCF TTM 393.6m / Enterprise Value 10.8b)
FCF Margin = 4.69% (FCF TTM 393.6m / Revenue TTM 8.39b)
Net Margin = 6.02% (Net Income TTM 505.2m / Revenue TTM 8.39b)
Gross Margin = 17.74% ((Revenue TTM 8.39b - Cost of Revenue TTM 6.90b) / Revenue TTM)
Gross Margin QoQ = 18.19% (prev 19.20%)
Tobins Q-Ratio = 1.13 (Enterprise Value 10.8b / Total Assets 9.56b)
Interest Expense / Debt = 2.62% (Interest Expense 88.8m / Debt 3.39b)
Taxrate = 15.23% (16.7m / 109.7m)
NOPAT = 597.0m (EBIT 704.2m * (1 - 15.23%))
Current Ratio = 2.38 (Total Current Assets 3.26b / Total Current Liabilities 1.37b)
Debt / Equity = 0.77 (Debt 3.39b / totalStockholderEquity, last quarter 4.41b)
Debt / EBITDA = 2.83 (Net Debt 2.90b / EBITDA 1.02b)
Debt / FCF = 7.36 (Net Debt 2.90b / FCF TTM 393.6m)
Total Stockholder Equity = 4.25b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.22% (Net Income 505.2m / Total Assets 9.56b)
RoE = 11.88% (Net Income TTM 505.2m / Total Stockholder Equity 4.25b)
RoCE = 9.31% (EBIT 704.2m / Capital Employed (Equity 4.25b + L.T.Debt 3.31b))
RoIC = 7.33% (NOPAT 597.0m / Invested Capital 8.15b)
WACC = 8.52% (E(7.90b)/V(11.3b) * Re(11.22%) + D(3.39b)/V(11.3b) * Rd(2.62%) * (1-Tc(0.15)))
Discount Rate = 11.22% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -2.39%
[DCF] Terminal Value 73.69% ; FCFF base≈407.0m ; Y1≈381.7m ; Y5≈352.7m
[DCF] Fair Price = 22.74 (EV 5.42b - Net Debt 2.90b = Equity 2.52b / Shares 110.9m; r=8.52% [WACC]; 5y FCF grow -7.87% → 2.50% )
EPS Correlation: -73.82 | EPS CAGR: -26.72% | SUE: -1.02 | # QB: -1
Revenue Correlation: -69.21 | Revenue CAGR: -3.97% | SUE: 1.21 | # QB: 3
EPS current Quarter (2026-05-31): EPS=1.80 | Chg30d=-0.53% | Revisions=+14% | Analysts=8
EPS current Year (2026-08-31): EPS=6.40 | Chg30d=-2.47% | Revisions=+33% | GrowthEPS=+104.6% | GrowthRev=+17.6%
EPS next Year (2027-08-31): EPS=6.94 | Chg30d=+1.97% | Revisions=-45% | GrowthEPS=+8.4% | GrowthRev=+7.4%
[Analyst] Revisions Ratio: -45%