Commercial Metals Co. (CMC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nucor Corp.

Steel Dynamics, Inc.

Commercial Metals Co.

Metallus, Inc.

Mesabi Trust

Reliance, Inc.

Worthington Enterprises, Inc.

Radius Recycling, Inc.

Cleveland-Cliffs, Inc.

Ryerson Holding Corp.

United States Steel Corp.

Why is Commercial Metals Co. ?

High Management Efficiency with a high ROCE of 20.80%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.62 times

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 751.68 MM
ROCE(HY) Lowest at 0.88%
DEBTORS TURNOVER RATIO(HY) Lowest at 6.57 times

With ROCE of 11.68%, it has a expensive valuation with a 1.45 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.27%, its profits have fallen by -35.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Commercial Metals Co. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Commercial Metals Co. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Commercial Metals Co.

4.91%

0.68

38.69%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.48%

EBIT Growth (5y)

2.39%

EBIT to Interest (avg)

18.44

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

1.57

Tax Ratio

23.41%

Dividend Payout Ratio

16.41%

Pledged Shares

Institutional Holding

98.34%

ROCE (avg)

20.80%

ROE (avg)

20.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.50

EV to EBIT

12.43

EV to EBITDA

8.04

EV to Capital Employed

1.45

EV to Sales

0.83

PEG Ratio

Dividend Yield

139.66%

ROCE (Latest)

11.68%

ROE (Latest)

10.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,357.2

DIVIDEND PAYOUT RATIO(Y)

Highest at 24.59%

RAW MATERIAL COST(Y)

Fallen by -4.69% (YoY

CASH AND EQV(HY)

Highest at USD 1,651.4 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.68 %

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 751.68 MM

ROCE(HY)

Lowest at 0.88%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.57 times

NET PROFIT(Q)

At USD 80.64 MM has Fallen at -26.51%

Here's what is working for Commercial Metals Co.

Interest Coverage Ratio

Highest at 2,357.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 12.68 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 1,651.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 24.59%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 72.38 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Commercial Metals Co.

Operating Cash Flow

Lowest at USD 751.68 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 80.64 MM has Fallen at -26.51%

over average net sales of the previous four periods of USD 109.72 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 6.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio