Commercial Metals Company (CMC) AI Stock Analysis

• Market Cap: $7.35B
• Dividend Yield: 1.02%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.28
• Revenue Growth: -1.61%
• EPS Growth: -81.36%
• Country: US
• Employees: 13,178
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.84
• Shares Outstanding: 110,907,420
• 10 Day Avg. Volume: 1,157,058
• 30 Day Avg. Volume: 1,124,429
• PEG Ratio: -0.94
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 20.87
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: 11.17
• 1Y Price Target: $82.09
• Price Target Upside: 23.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 7.06
• Revenue Forecast (FY): $9.11B

• Rating: 67 Neutral
• Price Target: $71.00 ▲(7.11% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by improved near-term operating momentum and constructive price trend signals. These positives are tempered by weaker longer-trend financial quality versus prior years (margin compression and softer cash conversion) and a valuation that is only moderate alongside a low dividend yield.

Positive Factors

Strategic precast acquisitions diversify portfolio

The CP&P and Foley acquisitions establish a sizable precast platform expected to add material EBITDA at higher margins (~30–35%). This materially diversifies CMC beyond steel products into construction solutions, creating cross-sell opportunities and reducing reliance on cyclical mill margins over the medium term.

Consistent cash generation and liquidity

Persistent positive operating cash flow and FCF provide durable funding for capex, dividends, buybacks and acquisition-related deleveraging. Strong absolute cash generation supports strategic investments and reduces refinancing risk, improving the company’s ability to execute multiyear growth and integration plans.

Operational improvement program (TAG) driving margins

TAG’s scrap optimization, mill yield, alloy and logistics gains have already delivered meaningful EBITDA and target larger run-rate savings. If sustained and scaled, these structural efficiency improvements can raise margins, enhance cash conversion, and make earnings less dependent on favorable metal pricing.

Negative Factors

Elevated pro forma leverage after acquisitions

Leverage rising to ~2.5x following ~$2.5B of acquisition payments reduces balance-sheet flexibility in a cyclical industry. Successful deleveraging depends on integration synergies, sustained FCF and possible divestitures; failure to execute would constrain capital allocation and increase refinancing risk.

Material margin compression vs recent peaks

Net margin contraction of this magnitude signals weaker earnings quality and greater sensitivity to price and cost swings. Lower margins reduce free cash flow conversion and ROE, meaningful structural improvement or sustained higher pricing is needed to restore historical profitability levels.

European market and trade/regulatory headwinds

CO2 credit timing, unresolved antidumping outcomes and import competition create structural uncertainty in Europe. These regulatory and trade dynamics can suppress pricing recovery and keep European margins depressed, potentially weighing on consolidated profitability until regulatory clarity or market shifts occur.

Commercial Metals Company Business Overview & Revenue Model

Company Description

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, 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.

How the Company Makes Money

CMC generates revenue primarily through the sale of steel and metal products produced at its steel mills and fabrication facilities. Key revenue streams include the sale of rebar, wire rod, and other structural steel products to construction and manufacturing sectors. Additionally, CMC earns revenue from its recycling operations, where it processes scrap metal and sells it to various end markets. The company benefits from strategic partnerships with suppliers and customers, which help ensure a steady supply of raw materials and a consistent demand for its products. Market dynamics, such as fluctuations in steel prices and demand from construction projects, significantly influence CMC's earnings.

Commercial Metals Company Financial Statement Overview

Summary

Still profitable with modest TTM revenue growth (+2.7%) and positive free cash flow (~$296M TTM), but profitability is well below prior peaks (TTM net margin ~5.5% vs ~9.8% FY2023 and ~13.7% FY2022). Cash conversion has softened (FCF ~42% of net income; operating cash flow coverage ~0.57 TTM), and leverage has risen versus recent history (debt-to-equity ~0.78), reducing flexibility in a cyclical steel environment.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up (+2.7%), but profitability has clearly compressed versus prior years: net margin is ~5.5% TTM compared with ~9.8% in FY2023 and ~13.7% in FY2022. FY2025 shows especially weak bottom-line conversion (~1.1% net margin) despite a still-decent gross margin (~15.6%), pointing to heavier operating/other cost pressure. Overall, the business remains profitable, but earnings quality and margins look cyclical and currently under pressure.

Balance Sheet

Leverage is moderate on a TTM basis (debt-to-equity ~0.78) with equity still substantial (~$4.3B), but it has moved higher versus the last several annual periods (~0.28–0.46), suggesting a less conservative capital structure. Returns on equity remain positive (~10.5% TTM), though well below peak levels in FY2022–FY2023, consistent with the margin reset. Balance sheet looks serviceable, but rising leverage reduces flexibility if the downturn persists.

Cash Flow

Operating cash flow is solid in absolute dollars (~$706M TTM), and free cash flow remains positive (~$296M TTM), but free cash flow is down (TTM growth ~-5.2%). Cash generation versus earnings is modest: free cash flow is ~42% of net income TTM, and operating cash flow coverage is below 1x in recent periods (TTM ~0.57; FY2025 ~0.57), indicating earnings are not fully translating into operating cash in the near term. The company has shown stronger cash conversion in FY2023–FY2024, but the latest trend is softer.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	8.01B	7.80B	7.93B	8.80B	8.91B	6.73B
Gross Profit	1.32B	1.22B	1.36B	1.81B	1.86B	1.11B
EBITDA	868.97M	438.92M	963.93M	1.38B	1.74B	753.53M
Net Income	437.66M	84.66M	485.49M	859.76M	1.22B	412.87M
Balance Sheet
Total Assets	9.24B	7.17B	6.82B	6.64B	6.24B	4.64B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.04B	857.92M	592.33M	672.60M	497.75M
Total Debt	3.35B	1.35B	1.19B	1.15B	1.50B	1.07B
Total Liabilities	4.93B	2.98B	2.52B	2.52B	2.95B	2.34B
Stockholders Equity	4.31B	4.19B	4.30B	4.12B	3.29B	2.29B
Cash Flow
Free Cash Flow	296.16M	312.25M	575.44M	737.44M	250.32M	44.31M
Operating Cash Flow	706.23M	715.07M	899.71M	1.34B	700.31M	228.47M
Investing Cash Flow	-351.30M	-346.77M	-323.00M	-835.23M	-684.72M	-162.13M
Financing Cash Flow	1.82B	-183.44M	-313.76M	-599.48M	165.31M	-109.39M

Commercial Metals Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMC, the sentiment is Negative. The current price of 66.29 is below the 20-day moving average (MA) of 74.63, below the 50-day MA of 75.20, and above the 200-day MA of 61.24, indicating a neutral trend. The MACD of -2.75 indicates Positive momentum. The RSI at 27.35 is Positive, neither overbought nor oversold. The STOCH value of 21.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMC.

Commercial Metals Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIM	69 Neutral	$4.93B	61.64	5.84%	―	-16.81%	-67.68%
CMC	67 Neutral	$7.35B	10.04	10.54%	1.02%	-1.61%	-81.36%
TX	65 Neutral	$7.83B	17.63	3.53%	7.02%	-16.69%	585.38%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GGB	61 Neutral	$6.82B	29.29	2.53%	2.92%	-2.53%	-36.08%
SID	53 Neutral	$1.86B	-19.29	-10.50%	―	-5.79%	-5.30%
CLF	49 Neutral	$5.44B	-4.42	-24.89%	―	-6.76%	-255.94%

Commercial Metals Company Corporate Events

Commercial Metals shareholders back board, auditors and pay

At its annual meeting of stockholders held on January 14, 2026, Commercial Metals Company’s shareholders elected three Class I directors — Dawne S. Hickton, Peter R. Matt and Robert S. Wetherbee — to serve three-year terms expiring at the 2029 annual meeting, reflecting continued support for the company’s existing board composition and governance structure. Stockholders also ratified the appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year ending August 31, 2026, and approved on an advisory basis the compensation of the company’s named executive officers, signaling broad investor backing for the firm’s financial oversight and executive pay practices.

The most recent analyst rating on (CMC) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Posts Strong Q1 Turnaround, Declares Dividend

For the fiscal first quarter ended November 30, 2025, Commercial Metals Company reported a sharp turnaround to net earnings of $177.3 million, or $1.58 per diluted share, from a net loss of $175.7 million a year earlier, on higher net sales of $2.1 billion, with adjusted earnings more than doubling to $206.2 million. Consolidated core EBITDA rose about 52% year over year to $316.9 million with a 14.9% margin, driven by strong operational execution, higher steel metal margins in North America, and robust performance in the Construction Solutions Group, which posted record first-quarter EBITDA and a 20% margin. During the quarter CMC advanced its Transform, Advance and Grow (TAG) program, launched new operational and commercial initiatives aimed at exiting fiscal 2026 with a $150 million annualized EBITDA benefit, repurchased roughly $38.9 million of its shares, and maintained liquidity of nearly $1.9 billion. In December 2025, it closed the acquisitions of Concrete Pipe and Precast and Foley Products for about $2.5 billion, establishing a major new growth platform in precast concrete and prompting the renaming of its Emerging Businesses Group to Construction Solutions Group to reflect its expanded construction solutions focus. The company also strengthened shareholder returns with the board’s January 5, 2026 declaration of a $0.18 per-share quarterly dividend, marking the 245th consecutive quarterly payment, while management highlighted stable domestic demand, improving pricing, and an encouraging construction pipeline in North America, offset by some margin pressure in Europe from imports.

The most recent analyst rating on (CMC) stock is a Hold with a $74.61 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Declares 245th Consecutive Quarterly Cash Dividend

On January 5, 2026, Commercial Metals Company announced that its board of directors declared a regular quarterly cash dividend of $0.18 per share, marking the company’s 245th consecutive quarterly dividend. The dividend is scheduled to be paid on February 2, 2026, to shareholders of record as of the close of business on January 19, 2026, underscoring CMC’s ongoing commitment to returning capital to investors and signaling continued financial stability to stakeholders in the construction and steel reinforcement markets.

The most recent analyst rating on (CMC) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Expands Credit Facility for Growth

On December 17, 2025, Commercial Metals Company announced a key amendment to its revolving credit facility agreement, increasing its borrowing capacity from $600.0 million to $1.0 billion and extending the facility’s maturity date to December 17, 2030. This adjustment reflects CMC’s efforts to enhance its financial flexibility, positioning the company to support its expansion in the construction sector and potentially strengthening its long-term strategic outlook.

The most recent analyst rating on (CMC) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Completes Acquisition of Foley Products

On December 15, 2025, Commercial Metals Company completed the acquisition of Foley Products Company for $1.84 billion. Foley is a leading supplier of precast concrete and pipe products in the Southeast, Central, and Western U.S., with 18 facilities across nine states. This acquisition, along with the previous acquisition of CP&P, positions CMC as one of the largest precast concrete businesses in the U.S., creating a significant growth platform and value opportunities for customers and shareholders.

The most recent analyst rating on (CMC) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.