CMCCommercial Metals Company shows a mixed investment profile, with solid fundamental performance in its core business contrasted by mixed technical indicators and moderate thematic alignment. It is suitable for investors seeking exposure to industrial cyclicality with reasonable valuation.
CMC is involved in the manufacturing and recycling of steel products, benefiting from infrastructure spending and construction activity. Its involvement in emerging businesses is less defined, and direct exposure to high-growth tech themes is limited.
CMC demonstrates solid profitability, healthy cash flow generation, and a manageable debt level, making it fundamentally sound. Valuation metrics indicate it's trading at reasonable levels relative to its earnings.
The stock is currently trading below key moving averages on most short to medium-term timeframes, suggesting a bearish short-term trend. However, it exhibits oversold conditions on some indicators, hinting at a potential bounce.
| Factor | Score |
|---|---|
| Infrastructure Spending | 80 |
| Construction Activity | 70 |
| Recycling and Sustainability | 75 |
| Industrial Automation/AI | 30 |
| Global Supply Chain Resilience | 50 |
| Factor | Score |
|---|---|
| Valuation | 30 |
| Profitability | 70 |
| Growth | 40 |
| Balance Sheet Health | 75 |
| Cash Flow | 80 |
| Dividend Yield | 60 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Volume Confirmation | 65 |
| Support & Resistance | 60 |
| Short-term Oscillators | 40 |
Positive EPS Surprises
Commercial Metals Company (CMC) has reported positive earnings per share (EPS) surprises in several recent quarters, indicating operational performance exceeding analyst expectations. For instance, in 2024 Q2, the reported EPS of $1.02 met the estimate, and in 2024 Q1, reported EPS of $0.88 exceeded the estimate of $0.75 by 17.96%.
Attractive Forward P/E Ratio
The forward Price-to-Earnings (P/E) ratio for 2024 is projected at 12.0, which appears attractive compared to historical P/E ratios and potentially the industry average, suggesting the stock may be undervalued relative to its future earnings potential.
High P/E Ratio
The trailing P/E ratio (TTM) is 173.03, and the forward P/E for 2025 Q2 is 69.9. These high multiples suggest that the stock might be overvalued relative to its current earnings, indicating potential downside risk if future earnings do not meet expectations.
Declining Revenue and Net Income
Revenue has shown a declining trend from $8.91 billion in 2022 to $7.93 billion in 2024 (annualized based on Q3). Net income has also decreased significantly from $1.22 billion in 2022 to $485.49 million in 2024, indicating slowing growth and profitability concerns.
June 2025
23
Next Earnings Date
H: $1.38
A: $1.36
L: $1.33
H: 2.14B
A: 2.08B
L: 2.03B
June 2025
30
Ex-Dividend Date
July 2025
9
Next Dividend Date
Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through three segments: North America Steel Group; Europe Steel Group; and Emerging Businesses Group. 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 reinforcing bar, merchant bar, light structural, and other special sections, as well as semi-finished billets for rerolling and forging applications. In addition, the company provides fabricated rebar 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, welded steel mesh, wire rod, cold rolled rebar, cold rolled wire rod, 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.
55.23 USD
The 39 analysts offering 1 year price forecasts for CMC have a max estimate of 67.00 and a min estimate of 47.00.