Commercial Metals Company (CMC) AI Stock Analysis

• Market Cap: $5.60B
• Dividend Yield: 1.44%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 161.2
• Beta (1Y): 1.21
• Revenue Growth: -5.64%
• EPS Growth: -93.26%
• Country: US
• Employees: 13,178
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Steel
• EPS (TTM): 0.74
• Shares Outstanding: 111,930,530
• 10 Day Avg. Volume: 1,410,444
• 30 Day Avg. Volume: 1,086,464
• PEG Ratio: -0.28
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.94
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: $53.93
• Price Target Upside: 10.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $54.00 ▲(10.41%Upside)

The overall score reflects strong financial performance and positive future projections, offset by high valuation concerns and potential liquidity risks. The positive earnings call sentiment and strategic growth initiatives are key strengths, while valuation metrics suggest caution. Technical analysis supports a balanced view with no immediate risks or opportunities.

Positive Factors

Government Legislation

CMC is well positioned to capitalize on favorable but uncertain government legislation and is optimistic on its downstream-focused EBG.

Price Hike

CMC should also benefit from the recently announced $60 per short ton rebar price hike by U.S. domestic mills, which appears to be gaining traction.

Transform, Advance, and Grow Program

The Transform, Advance, and Grow program continues to gain traction, with estimated benefit from ongoing initiatives expected to exceed $100 million in annual run-rate.

Negative Factors

Federal Spending and Tariff Benefits

Newfound headwinds on federal spending and a smaller potential tariff benefit on long products lead to an EW rating.

Free Cash Flow

The company's projected negative free cash flow in fiscal year 2026 contributes to the analysis.

Macroeconomic Uncertainty

Rising macroeconomic uncertainty is a factor in the investment analysis for CMC.

Commercial Metals Company Business Overview & Revenue Model

Company Description

Commercial Metals Company (CMC) is a leading global manufacturer, recycler, and fabricator of steel and metal products. The company operates in several sectors, including the manufacturing of rebar, merchant bar, and wire rod products, as well as the recycling of scrap metals. With a strong presence in the construction, infrastructure, and energy sectors, CMC provides essential materials and solutions that support various industries worldwide.

How the Company Makes Money

Commercial Metals Company generates revenue primarily through the production and sale of steel and metal products. A significant portion of its income comes from its steel manufacturing operations, where it produces rebar, merchant bar, and wire rod for construction and industrial applications. Additionally, CMC operates one of the largest metal recycling facilities in the United States, processing and selling scrap metal to steel mills and foundries. The company also engages in fabrication services, where it processes steel into finished products for specific customer needs. Strategic partnerships and contracts with construction firms, infrastructure projects, and industrial manufacturers further bolster CMC's revenue streams, ensuring a steady demand for its products and services.

Commercial Metals Company Financial Statement Overview

Summary

Commercial Metals Company shows strong operational efficiency and a solid balance sheet with low leverage. However, weakened profitability is evident from declining net profit margins and inconsistent revenue growth. Despite strong cash generation, recent declines in free cash flow growth signal potential liquidity risks.

Income Statement

The company demonstrates a strong gross profit margin of 35.45% TTM, reflecting efficient cost management in production. However, the net profit margin has declined significantly to 0.95% TTM, indicating increased expenses or reduced revenue. Revenue growth has been inconsistent, with a decline of 10.88% in the latest annual report. The EBIT margin is robust at 24.98% TTM, suggesting good operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.30, indicating low leverage and financial stability. Return on equity is modest at 1.82% TTM, showing room for improvement in profitability. The equity ratio stands at 59.99% TTM, suggesting a solid capital structure with a good portion of assets financed by equity.

Cash Flow

Operating cash flow to net income ratio is high at 10.87 TTM, reflecting strong cash generation relative to profits. Free cash flow growth is negative at -25.75%, indicating potential challenges in maintaining liquidity. The free cash flow to net income ratio is 5.84 TTM, showing efficient conversion of earnings into cash.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	7.74B	7.93B	8.80B	8.91B	6.73B	5.48B
Gross Profit	1.19B	1.36B	1.81B	1.86B	1.11B	944.80M
EBITDA	429.51M	963.93M	1.38B	1.49B	753.53M	598.37M
Net Income	73.13M	485.49M	859.76M	1.22B	412.87M	279.50M
Balance Sheet
Total Assets	6.69B	6.82B	6.64B	6.24B	4.64B	4.08B
Cash, Cash Equivalents and Short-Term Investments	758.40M	857.92M	592.33M	672.60M	497.75M	542.10M
Total Debt	1.19B	1.19B	1.15B	1.50B	1.07B	1.08B
Total Liabilities	2.68B	2.52B	2.52B	2.95B	2.34B	2.19B
Stockholders Equity	4.01B	4.30B	4.12B	3.29B	2.29B	1.89B
Cash Flow
Free Cash Flow	427.20M	575.44M	737.44M	250.32M	44.31M	603.59M
Operating Cash Flow	795.15M	899.71M	1.34B	700.31M	228.47M	791.20M
Investing Cash Flow	-339.69M	-323.00M	-835.23M	-684.72M	-162.13M	-192.94M
Financing Cash Flow	-335.95M	-313.76M	-599.48M	165.31M	-109.39M	-247.79M

Commercial Metals Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 48.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMC, the sentiment is Neutral. The current price of 48.91 is below the 20-day moving average (MA) of 49.11, above the 50-day MA of 47.08, and below the 200-day MA of 50.25, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 66.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMC.

Commercial Metals Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GGB	73 Outperform	$5.72B	10.12	5.86%	2.95%	-9.33%	-51.03%
CMC	71 Outperform	$5.60B	161.20	0.88%	1.44%	-5.64%	-93.26%
SIM	69 Neutral	$4.57B	7.02	19.79%	―	-15.93%	86.43%
Sector *	62 Neutral	$9.97B	9.61	-0.15%	2.99%	2.10%	-35.27%
TX	58 Neutral	$6.04B	73.52	-2.75%	11.71%	-10.20%	-152.18%
SID	49 Neutral	$1.80B	―	-16.28%	13.22%	-9.84%	-14783.33%

Commercial Metals Company Corporate Events

Commercial Metals Reports Q3 2025 Earnings and Market Growth

On June 23, 2025, Commercial Metals Company announced its fiscal third-quarter results for 2025, revealing net earnings of $83.1 million on $2.0 billion in sales. Despite a year-over-year decline in earnings, the company saw improvements in market conditions across its segments, particularly in North America and Europe. The TAG program exceeded its EBITDA targets, contributing to better margins and financial performance. The company also reported strong liquidity and continued shareholder returns through dividends and share repurchases. CMC’s strategic focus on infrastructure and emerging markets positions it for future growth.

The most recent analyst rating on (CMC) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Declares Quarterly Dividend for Shareholders

On June 18, 2025, Commercial Metals Company announced that its board of directors declared a regular quarterly cash dividend of $0.18 per share, marking the company’s 243rd consecutive quarterly dividend. This dividend will be paid on July 9, 2025, to stockholders recorded by June 30, 2025, reflecting CMC’s continued commitment to shareholder returns.

The most recent analyst rating on (CMC) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Closes $150M Bond Sale for Facilities

On May 15, 2025, Commercial Metals Company announced the closing of a $150 million bond sale, facilitated by the West Virginia Economic Development Authority, to finance the construction of solid waste disposal facilities in Berkeley County, West Virginia. The bonds, which mature in 2055, will bear an interest rate of 4.625% per annum, with CMC responsible for the debt service, including semiannual interest payments and principal repayment upon maturity or earlier redemption.

The most recent analyst rating on (CMC) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Prices $150M Bonds for Waste Facilities

On May 6, 2025, Commercial Metals Company announced the pricing of $150 million in Solid Waste Disposal Facility Revenue Bonds, Series 2025, through the West Virginia Economic Development Authority. The proceeds from these bonds will finance the construction of solid waste disposal facilities in Berkeley County, West Virginia, with the bonds maturing in 2055 and bearing an interest rate of 4.625% per annum. This move is expected to impact CMC’s operations by supporting its infrastructure projects and reinforcing its market position in sustainable construction solutions.