ScoreWhy is Commercial Metals Co. ?
1
High Management Efficiency with a high ROCE of 20.80%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.62 times
3
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
4
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 15.84%, its profits have fallen by -35.9%
Real-Time Research ReportHow 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.
29.84%
0.95
38.84%
S&P 500
14.9%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.87%
EBIT Growth (5y)
7.72%
EBIT to Interest (avg)
18.44
Debt to EBITDA (avg)
0.62
Net Debt to Equity (avg)
0.11
Sales to Capital Employed (avg)
1.47
Tax Ratio
23.41%
Dividend Payout Ratio
97.02%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
20.80%
ROE (avg)
20.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.69
EV to EBIT
11.45
EV to EBITDA
7.99
EV to Capital Employed
1.65
EV to Sales
0.95
PEG Ratio
NA
Dividend Yield
86.63%
ROCE (Latest)
14.37%
ROE (Latest)
10.45%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 11.4%
RAW MATERIAL COST(Y)
Fallen by -25.95% (YoY
CASH AND EQV(HY)
Highest at USD 4,075.35 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 7.41 %
INVENTORY TURNOVER RATIO(HY)
Highest at 6.93 times
DEBTORS TURNOVER RATIO(HY)
Highest at 6.95 times
NET SALES(Q)
Highest at USD 2,120.31 MM
OPERATING PROFIT(Q)
Highest at USD 292.86 MM
OPERATING PROFIT MARGIN(Q)
Highest at 13.81 %
PRE-TAX PROFIT(Q)
Highest at USD 194.91 MM
NET PROFIT(Q)
Highest at USD 188.89 MM
EPS(Q)
Highest at USD 1.58
-11What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 706.23 MM
INTEREST(Q)
Highest at USD 24.85 MM
Here's what is working for Commercial Metals Co.
Net Sales
Highest at USD 2,120.31 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 292.86 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 13.81 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 194.91 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 194.91 MM has Grown at 69.69%
over average net sales of the previous four periods of USD 114.87 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 188.89 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 188.89 MM has Grown at 73.5%
over average net sales of the previous four periods of USD 108.87 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.58
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 4,075.35 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 7.41 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 6.93 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 6.95 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 11.4%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -25.95% (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 72.72 MM
in the last five periodsMOJO 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 706.23 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
At USD 24.85 MM has Grown at 104.59%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 24.85 MM
in the last five periods and Increased by 104.59% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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