Commercial Metals Company (CMC) AI Stock Analysis

• Market Cap: $6.49B
• Dividend Yield: 1.25%
• Average Volume (3M): 871.01K
• Price to Earnings (P/E): 189.9
• Beta (1Y): 1.30
• Revenue Growth: -5.64%
• EPS Growth: -93.26%
• Country: US
• Employees: 13,178
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 0.74
• Shares Outstanding: 111,930,530
• 10 Day Avg. Volume: 914,006
• 30 Day Avg. Volume: 871,006
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 15.15
• 1Y Price Target: $58.07
• Price Target Upside: 0.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $63.00 ▲(9.43% Upside)

Commercial Metals Company has a moderate overall stock score driven by strong technical momentum and a solid balance sheet. However, the high P/E ratio suggests overvaluation, and declining revenue and profitability margins pose risks. The earnings call and corporate events provide a mixed but generally positive outlook, with strategic initiatives potentially enhancing future performance.

Positive Factors

Construction Demand

CMC sees construction demand remaining resilient with multiple tailwinds in place.

Rebar Price Hikes

Domestic rebar price hikes are gaining traction supported by lower imports.

TAG Program

The Transform, Advance, and Grow (TAG) program is gaining momentum, with significant upside potential.

Negative Factors

Federal Spending and Tariffs

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

Macroeconomic Uncertainty

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

New Capacity Impact

There is more than 2.5 million tons per annum of new capacity ramping, which could offset U.S. bar imports and affect demand.

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 strong operational efficiency with a robust EBIT margin of 24.98% TTM and a solid balance sheet with a low debt-to-equity ratio of 0.30. However, profitability is a concern with a declining net profit margin of 0.95% TTM and inconsistent revenue growth. Cash flow generation is strong, but recent declines in free cash flow growth suggest 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	7.93B	8.80B	8.91B	6.73B	5.48B
Gross Profit	1.36B	1.81B	1.86B	1.11B	944.80M
EBITDA	963.93M	1.38B	1.74B	753.53M	598.37M
Net Income	485.49M	859.76M	1.22B	412.87M	279.50M
Balance Sheet
Total Assets	6.82B	6.64B	6.24B	4.64B	4.08B
Cash, Cash Equivalents and Short-Term Investments	857.92M	592.33M	672.60M	497.75M	542.10M
Total Debt	1.19B	1.15B	1.50B	1.19B	1.08B
Total Liabilities	2.52B	2.52B	2.95B	2.34B	2.19B
Stockholders Equity	4.30B	4.12B	3.29B	2.29B	1.89B
Cash Flow
Free Cash Flow	575.44M	737.44M	250.32M	44.31M	603.59M
Operating Cash Flow	899.71M	1.34B	700.31M	228.47M	791.20M
Investing Cash Flow	-323.00M	-835.23M	-684.72M	-162.13M	-192.94M
Financing Cash Flow	-313.76M	-599.48M	165.31M	-109.39M	-247.79M

Commercial Metals Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 57.57 is above the 20-day moving average (MA) of 54.88, above the 50-day MA of 52.69, and above the 200-day MA of 50.44, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 68.19 is Neutral, 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
CMC	72 Outperform	$6.49B	189.88	0.88%	1.25%	-5.64%	-93.26%
GGB	71 Outperform	$5.94B	10.62	5.77%	3.56%	-6.55%	-37.93%
TX	70 Neutral	$6.58B	11.11	4.89%	8.14%	-16.83%	―
SIM	69 Neutral	$4.69B	13.17	10.49%	―	-18.58%	-35.32%
X	64 Neutral		―		―	-14.79%	-88.78%
Sector *	61 Neutral	$10.31B	6.16	0.76%	2.94%	3.30%	-36.34%
SID	50 Neutral	$1.76B	―	-15.57%	16.87%	-10.77%	-191.87%

Commercial Metals Company Corporate Events

Commercial Metals Appoints New Director Dawne S. Hickton

On July 11, 2025, Commercial Metals Company (CMC) announced the appointment of Dawne S. Hickton as a Class I director, effective October 14, 2025. Ms. Hickton, an accomplished executive with over three decades of leadership experience, will serve on the Audit and Finance Committees, increasing the board’s size from nine to ten directors. Her extensive background in specialty metals additive manufacturing and her previous executive roles are expected to bring valuable insights to CMC, enhancing its strategic direction and governance.

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.

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.