NYSE
CMC
Last Price
US $62.75
KEY FIGURES
MKT CAP
$7.7B
EPS
TTM
$5.36
PEG
TTM
N/M
P/E
TTM
12.93x
P/S
TTM
0.98x
YIELD
1.07%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
13.65%
Return on equity
ROIC: 8.54%
Valuation History
12.9X
Price to Earnings
EV/EBITDA: 9.1X
Cash flow
Profit margin
7.33%
(FY vs FY)
EBITDA Y/Y
-6.01%
(FY vs FY)
Cash flow Y/Y
-12.35%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $62.75
-74.14%
Default assumptions
EBITDA Multiple
Fair Value
Market $62.75
-60.32%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Commercial Metals Company cash flow to debt ratio of 52.80% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Commercial Metals Company's free cash flow has decreased -45.74% from $575.44M last year to $312.25M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Commercial Metals Company's debt to equity ratio is 0.75, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Commercial Metals Company's debt has increased relative to shareholder equity from 0.28 last year to 0.75 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Commercial Metals Company has a net debt to EBITDA ratio of 0.71x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Commercial Metals Company's interest coverage ratio of 6.88 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Commercial Metals Company's profit margin has increased (9.78%) in the last year from 6.13% to 6.72%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Commercial Metals Company's short-term assets of $3.49G exceed its short-term liabilities of $1.26G
Increasing performance - ROA.
Commercial Metals Company's return on assets of 6.07% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Commercial Metals Company's return on equity of 13.65%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Commercial Metals Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Commercial Metals Company had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Commercial Metals Company has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Commercial Metals Company has a free cash flow yield of 4.07%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Commercial Metals Company's yearly earnings has decreased -82.56% since last year from $485.49M to $84.66M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Commercial Metals Company's yearly revenue has decreased -1.61% since last year from $7.93G to $7.80G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 8.54% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
Commercial Metals Company's 3-year revenue CAGR of -4.36% is negative, indicating declining revenue over the past 3 years
Decreasing performance - Revenue consistency.
Commercial Metals Company had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
Commercial Metals Company had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Commercial Metals Company is overvalued relative to its fair value price of 16.23 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Commercial Metals Company has an earnings yield of 7.75%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Commercial Metals Company is overvalued relative to its fair value price of 24.90 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Commercial Metals Company has an EV/EBITDA ratio of 9.13x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Commercial Metals Company has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Commercial Metals Company has a price-to-book ratio of 1.69x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Commercial Metals Company has a price-to-sales ratio of 0.87x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue