Commercial Metals (CMC)
NYSE:CMC
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Commercial Metals Company
(NYSE:CMC)
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Rating:61Neutral
Price Target:
$66.00
▲(9.84% Upside)
Action:ReiteratedDate:03/26/26
The score is driven by improving financial performance and supportive valuation (low P/E), reinforced by a constructive earnings call outlook for higher EBITDA and deleveraging. These positives are tempered by elevated balance-sheet leverage versus recent history and weak technical trends (below key moving averages with negative MACD).
Positive Factors
Profitability Recovery
Trailing-twelve-month margin recovery reflects sustained improvement in core operating performance and pricing over input costs. Higher operating margins increase internal cash generation, improve return on capital, and provide durable earnings power that can fund capex, dividends, and deleveraging through a full market cycle.
Negative Factors
Elevated Leverage
The material step-up in leverage reduces financial flexibility and raises sensitivity to cyclical downturns and interest-cost shocks. Higher leverage constrains capital allocation optionality, may slow buybacks, and requires sustained cash generation to confidently return to target leverage levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
Trailing-twelve-month margin recovery reflects sustained improvement in core operating performance and pricing over input costs. Higher operating margins increase internal cash generation, improve return on capital, and provide durable earnings power that can fund capex, dividends, and deleveraging through a full market cycle.
Read all positive factors
Commercial Metals Company (CMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.66B
Dividend Yield1.02%
Average Volume (3M)1.26M
Price to Earnings (P/E)21.9
Beta (1Y)1.27
Revenue Growth-1.61%
EPS Growth-81.36%
CountryUS
Employees13,178
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)1.16
Shares Outstanding110,907,420
10 Day Avg. Volume1,489,067
30 Day Avg. Volume1,262,893
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)1.55
Price to Sales (P/S)0.84
P/FCF Ratio20.87
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue1.15
Enterprise Value/Gross Profit6.51
Enterprise Value/Ebitda10.69
Forecast
1Y Price Target
$81.29Price Target Upside35.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)6.75
Revenue Forecast (FY)$9.14B
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 me...
How the Company Makes Money
CMC primarily makes money by selling steel and related products and services across its operating segments. A major revenue stream is the manufacture and sale of steel long products (notably rebar and other merchant/bar products) produced in its s...
Commercial Metals Company Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 18, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a predominantly positive message: materially higher consolidated core EBITDA (up 114% YoY), strong contributions and promising outlook from the newly acquired precast platform, solid North America margins and meaningful TAG-driven improvements. The company also demonstrated healthy liquidity and progress toward deleveraging while increasing the dividend. Short-term headwinds include weather-related production disruption, acquisition-related purchase accounting amortization that will compress GAAP income versus core EBITDA for several quarters, European import-related disruption and some maintenance/energy cost pressures. On balance, the positive operational momentum, acquisition upside and financial strength outweigh the near-term challenges.Positive Updates
Strong GAAP and Adjusted Earnings
Reported net earnings of $93.0 million ($0.83 per diluted share) and adjusted earnings of $130.1 million ($1.16 per diluted share) after excluding certain acquisition and other items.
Negative Updates
Weather-Related Disruption
Abnormally disruptive winter weather temporarily reduced production and increased energy costs; estimated adverse impact to North America Steel adjusted EBITDA of approximately $5 million–$10 million in the quarter and caused some construction/capital schedule delays (e.g., Steel West Virginia).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong GAAP and Adjusted Earnings
Reported net earnings of $93.0 million ($0.83 per diluted share) and adjusted earnings of $130.1 million ($1.16 per diluted share) after excluding certain acquisition and other items.
Read all positive updates
Company Guidance
Guidance highlights: Management expects consolidated core EBITDA to increase meaningfully in Q3 from Q2’s $297.5M (14% margin), with North America Steel Group adjusted EBITDA rising modestly sequentially but facing ~$15–$20M of outage-related costs; Construction Solutions Group EBITDA is expected to nearly double sequentially, and Europe Steel Group EBITDA to substantially improve including an anticipated ~ $20M CO2 credit. For fiscal 2026 the newly acquired precast platform is still guided to deliver $165–$175M of EBITDA, capex is expected to be about $600M (≈$300M to complete the West Virginia micromill and ~$25M for precast), and the company targets returning adjusted net leverage from ~2.3x back to ≤2.0x (aided by precast free cash flow and tax benefits). Other forward-looking metrics: TAG is on track to reach or exceed a $150M annualized EBITDA run rate by year-end, full-year effective tax rate is expected at 7–9%, quarterly dividend was raised $0.02 to $0.20 (11% increase), total liquidity is just over $1.7B (cash $504M + ~$1.2B facilities), and purchase-accounting/amortization and higher interest will widen the gap between core EBITDA and pre-tax income by roughly $60–$65M per quarter for the next three quarters.Commercial Metals Company Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.39B | 7.80B | 7.93B | 8.80B | 8.91B | 6.73B |
| Gross Profit | 1.49B | 1.22B | 1.36B | 1.81B | 1.86B | 1.11B |
| EBITDA | 905.85M | 438.92M | 963.93M | 1.38B | 1.74B | 753.53M |
| Net Income | 505.22M | 84.66M | 485.49M | 859.76M | 1.22B | 412.87M |
Balance Sheet | ||||||
| Total Assets | 9.56B | 7.17B | 6.82B | 6.64B | 6.24B | 4.64B |
| Cash, Cash Equivalents and Short-Term Investments | 495.04M | 1.04B | 857.92M | 592.33M | 672.60M | 497.75M |
| Total Debt | 3.36B | 1.35B | 1.19B | 1.15B | 1.50B | 1.07B |
| Total Liabilities | 5.16B | 2.98B | 2.52B | 2.52B | 2.95B | 2.34B |
| Stockholders Equity | 4.41B | 4.19B | 4.30B | 4.12B | 3.29B | 2.29B |
Cash Flow | ||||||
| Free Cash Flow | 393.56M | 312.25M | 575.44M | 737.44M | 250.32M | 44.31M |
| Operating Cash Flow | 840.06M | 715.07M | 899.71M | 1.34B | 700.31M | 228.47M |
| Investing Cash Flow | -2.93B | -346.77M | -323.00M | -835.23M | -684.72M | -162.13M |
| Financing Cash Flow | 1.83B | -183.44M | -313.76M | -599.48M | 165.31M | -109.39M |
Commercial Metals Company Technical Analysis
Negative
60.09
Price Trends
72.21
Negative
69.20
Negative
62.19
Negative
Market Momentum
-3.54
Negative
34.56
Neutral
21.81
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 60.09 is below the 20-day moving average (MA) of 63.51, below the 50-day MA of 72.21, and below the 200-day MA of 62.19, indicating a bearish trend. The MACD of -3.54 indicates Negative momentum. The RSI at 34.56 is Neutral, neither overbought nor oversold. The STOCH value of 21.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMC.
Commercial Metals Company Risk Analysis
Commercial Metals Company disclosed 37 risk factors in its most recent earnings report. Commercial Metals Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Commercial Metals Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $5.01B | 61.64 | 6.07% | ― | -16.81% | -67.68% | |
65 Neutral | $7.55B | 17.63 | 3.53% | 7.02% | -16.69% | 585.38% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $6.66B | 21.86 | 11.88% | 1.02% | -1.61% | -81.36% | |
61 Neutral | $6.65B | 29.29 | 2.53% | 2.92% | -2.53% | -36.08% | |
45 Neutral | $4.63B | -4.42 | -24.89% | ― | -6.76% | -255.94% | |
45 Neutral | $1.54B | -5.92 | -13.62% | ― | -5.79% | -5.30% |
* Basic Materials Sector Average
CMC
Commercial Metals Company
60.09
13.53
29.05%
CLF
Cleveland-Cliffs
8.11
<0.01
0.12%
GGB
Gerdau SA
3.46
0.63
22.26%
SIM
Grupo Simec SA De CV
29.80
3.47
13.16%
SID
Companhia Siderúrgica Nacional
1.18
-0.49
-29.34%
TX
Ternium SA
38.48
10.22
36.17%
Commercial Metals Company Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Commercial Metals posts strong Q2 results, boosts dividend
Positive
Mar 26, 2026
Commercial Metals Company reported strong results for its fiscal second quarter ended February 28, 2026, with net earnings rising to $93.0 million, or $0.83 per diluted share, on $2.1 billion in sales, and adjusted earnings reaching $130.1 million...
Business Operations and StrategyDividends
Commercial Metals Boosts Quarterly Dividend, Signals Confidence
Positive
Mar 25, 2026
On March 25, 2026, CMC’s board of directors declared a regular quarterly cash dividend of $0.20 per share, representing an 11% increase, or $0.02, over the dividend paid in February 2026. The company said this dividend, its 246th consecutive...
Executive/Board ChangesShareholder Meetings
Commercial Metals shareholders back board, auditors and pay
Positive
Jan 15, 2026
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 expiri...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Commercial Metals Posts Strong Q1 Turnaround, Declares Dividend
Positive
Jan 8, 2026
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....
Dividends
Commercial Metals Declares 245th Consecutive Quarterly Cash Dividend
Positive
Jan 5, 2026
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 pa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.