Commercial Metals Company (CMC) AI Stock Analysis

• Market Cap: $6.78B
• Dividend Yield: 1.18%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 82.3
• Beta (1Y): 1.24
• Revenue Growth: -1.61%
• EPS Growth: -81.36%
• Country: US
• Employees: 13,178
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.37
• Shares Outstanding: 110,968,090
• 10 Day Avg. Volume: 1,979,415
• 30 Day Avg. Volume: 1,342,816
• 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: 1.03
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 5.72
• Enterprise Value/Ebitda: 15.91
• 1Y Price Target: $66.78
• Price Target Upside: 9.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 70 Neutral
• Price Target: $67.00 ▲(9.69% Upside)

Commercial Metals Company receives a score of 69.5, driven by strong technical indicators and positive earnings call sentiment. However, high valuation metrics and challenges in financial performance, particularly in profitability and cash flow, weigh on the overall score.

Positive Factors

Strategic Acquisitions

The acquisition of Foley Products Company is expected to create a high-quality platform in the precast industry, enhancing CMC's earnings and cash flow. This strategic move positions CMC for long-term growth and diversification, strengthening its market position.

Market Demand

Strong demand driven by infrastructure and construction projects supports CMC's growth prospects. The company's alignment with these structural trends ensures sustained revenue opportunities and market expansion in key sectors.

Operational Efficiency

The increase in adjusted EBITDA for the North American Steel Group indicates enhanced operational efficiency. This improvement in margins reflects CMC's ability to optimize its operations, contributing to long-term profitability and competitive advantage.

Negative Factors

Increased Leverage

The increased leverage following recent acquisitions could strain CMC's financial flexibility. While these acquisitions are strategic, the elevated debt levels may pose risks to cash flow and limit future investment capabilities until deleveraging targets are met.

Profitability Pressure

Decreasing net profit margins indicate challenges in maintaining profitability. This trend could impact CMC's ability to generate shareholder value and suggests a need for improved cost management and operational strategies to sustain long-term financial health.

Cash Flow Challenges

Negative free cash flow growth highlights potential issues in cash generation from operations. This could affect CMC's ability to fund growth initiatives and manage debt, necessitating a focus on enhancing cash flow efficiency to support future business needs.

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 its steel and metal products, which are supplied to various industries including construction, automotive, and manufacturing. Key revenue streams include the sale of finished steel products, scrap metal recycling operations, and steel fabrication services. The company benefits from its vertically integrated business model, which allows it to control costs and improve operational efficiency. Significant partnerships with construction firms, industrial manufacturers, and other stakeholders in the supply chain further enhance its market reach and revenue potential. Additionally, fluctuations in steel prices and demand in the construction sector play a crucial role in influencing CMC's earnings.

Commercial Metals Company Financial Statement Overview

Summary

Commercial Metals Company exhibits a stable yet challenging financial performance. While revenue levels are maintained, profitability and cash flow generation are under pressure. The balance sheet shows improved leverage management, but shareholder returns have declined.

Income Statement

Commercial Metals Company has shown a mixed performance in its income statement. The revenue growth rate has been inconsistent, with a slight decline in recent years. Gross profit margins have been relatively stable, but net profit margins have decreased significantly from 2022 to 2025. The EBIT and EBITDA margins have also seen a decline, indicating pressure on operating efficiency. Overall, while the company has maintained revenue levels, profitability has been under strain.

Balance Sheet

The balance sheet of Commercial Metals Company reflects a moderate financial position. The debt-to-equity ratio has improved over the years, indicating better leverage management. However, the return on equity has decreased significantly from 2022 to 2025, suggesting reduced profitability for shareholders. The equity ratio has remained stable, showing a balanced asset structure. Overall, the company has managed its debt levels well but needs to focus on improving shareholder returns.

Cash Flow

Cash flow analysis reveals some challenges for Commercial Metals Company. The free cash flow growth rate has been negative in recent years, indicating potential issues in generating cash from operations. The operating cash flow to net income ratio has decreased, suggesting less cash generation relative to net income. The free cash flow to net income ratio has also declined, pointing to reduced cash efficiency. Overall, the company needs to enhance its cash flow generation to support future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.80B	7.80B	7.93B	8.80B	8.91B	6.73B
Gross Profit	1.22B	1.22B	1.36B	1.81B	1.86B	1.11B
EBITDA	438.92M	438.92M	963.93M	1.38B	1.74B	753.53M
Net Income	84.66M	84.66M	485.49M	859.76M	1.22B	412.87M
Balance Sheet
Total Assets	7.17B	7.17B	6.82B	6.64B	6.24B	4.64B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.04B	857.92M	592.33M	672.60M	497.75M
Total Debt	1.35B	1.35B	1.19B	1.15B	1.50B	1.07B
Total Liabilities	2.98B	2.98B	2.52B	2.52B	2.95B	2.34B
Stockholders Equity	4.19B	4.19B	4.30B	4.12B	3.29B	2.29B
Cash Flow
Free Cash Flow	312.25M	312.25M	575.44M	737.44M	250.32M	44.31M
Operating Cash Flow	715.07M	715.07M	899.71M	1.34B	700.31M	228.47M
Investing Cash Flow	-346.78M	-346.77M	-323.00M	-835.23M	-684.72M	-162.13M
Financing Cash Flow	-183.44M	-183.44M	-313.76M	-599.48M	165.31M	-109.39M

Commercial Metals Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMC, the sentiment is Positive. The current price of 61.08 is above the 20-day moving average (MA) of 58.85, above the 50-day MA of 58.27, and above the 200-day MA of 50.80, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 81.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMC.

Commercial Metals Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TX	73 Outperform	$7.10B	12.13	4.89%	7.47%	-16.83%	―
GGB	71 Outperform	$6.39B	12.01	5.77%	3.18%	-6.55%	-37.93%
CMC	70 Neutral	$6.78B	82.31	1.99%	1.18%	-1.61%	-81.36%
SIM	66 Neutral	$4.58B	13.23	10.49%	―	-18.58%	-35.32%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SID	53 Neutral	$2.11B	-5.47	-15.57%	14.08%	-10.77%	-192.16%

Commercial Metals Company Corporate Events

Commercial Metals (CMC) Earnings Call Highlights Strategic Growth

The recent earnings call of Commercial Metals Company (CMC) was marked by a generally positive sentiment, reflecting significant achievements and a promising outlook for the future. The company highlighted its acquisition of Foley Products Company, strong financial performance, and a positive forecast for the construction markets. However, challenges such as increased leverage and seasonal impacts on profitability were also acknowledged.

Commercial Metals Reports Strong Fiscal 2025 Results

Commercial Metals Company (CMC) is a leading provider of innovative solutions for the global construction sector, specializing in manufacturing steel and metal products primarily in the United States and Central Europe.

Commercial Metals Acquires Foley Products for $1.84 Billion

On October 15, 2025, Commercial Metals Company announced a definitive agreement to acquire Foley Products Company for $1.84 billion. This acquisition is expected to significantly enhance CMC’s precast platform, positioning it as the third-largest player in the U.S. precast market. The transaction is anticipated to be immediately accretive to earnings per share and free cash flow, with expected synergies of $25 million to $30 million in EBITDA by year three. The acquisition will transform CMC’s financial profile, increasing EBITDA margins and providing a clear path to deleveraging. The deal is set to close by December 2025, subject to regulatory approvals and customary closing conditions.

The most recent analyst rating on (CMC) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Reports Strong Q4 Financial Results

On October 16, 2025, Commercial Metals Company announced its financial results for the fourth quarter and fiscal year ending August 31, 2025. The company reported strong financial performance with fourth-quarter net earnings of $151.8 million and a core EBITDA margin of 13.8%. The Emerging Businesses Group achieved record results, and the Arizona 2 micro mill generated positive adjusted EBITDA. The company also highlighted its strategic acquisitions of Foley Products Company and Concrete Pipe & Precast, which are expected to enhance its growth platform. Despite a significant after-tax charge related to litigation, CMC’s balance sheet remains robust with substantial liquidity. The company is optimistic about future growth, supported by favorable market conditions and strategic initiatives.

The most recent analyst rating on (CMC) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Declares 244th Consecutive Quarterly Dividend

On October 15, 2025, Commercial Metals Company announced that its board of directors declared a regular quarterly cash dividend of $0.18 per share of common stock, marking the 244th consecutive quarterly dividend. The dividend is scheduled to be paid on November 13, 2025, to stockholders recorded by the close of business on October 30, 2025, reflecting CMC’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (CMC) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Faces Adverse Ruling in Litigation

On September 29, 2025, Commercial Metals Company received an adverse ruling on its post-trial motions in the Pacific Steel Group litigation, with the court upholding a previous jury verdict in favor of Pacific Steel Group from November 5, 2024. CMC expressed disappointment with the outcome and plans to appeal the decision, emphasizing its commitment to defending its business practices and integrity.

The most recent analyst rating on (CMC) stock is a Hold with a $62.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.

Commercial Metals Acquires Concrete Pipe & Precast

On September 17, 2025, Commercial Metals Company announced its agreement to acquire Concrete Pipe & Precast, LLC for $675 million, aiming to expand its commercial portfolio in early-stage construction solutions. This acquisition is expected to enhance CMC’s financial profile, being immediately accretive to earnings per share and free cash flow per share, while establishing a scalable growth platform in the precast concrete industry, which is projected to outpace the broader concrete sector.

The most recent analyst rating on (CMC) stock is a Hold with a $60.00 price target. To see the full list of analyst forecasts on Commercial Metals Company stock, see the CMC Stock Forecast page.