Commercial Metals Company
Find Ratings ReportsCOMMERCIAL METALS's gross profit margin for the first quarter of its fiscal year 2024 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the subsector, the net income growth did not. COMMERCIAL METALS is extremely liquid. Currently, the Quick Ratio is 2.44 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 18.01% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 2003.05 | 2227.31 |
EBITDA ($mil) | 305.64 | 402.96 |
EBIT ($mil) | 236.45 | 351.78 |
Net Income ($mil) | 176.27 | 261.77 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 704.6 | 587.39 |
Total Assets ($mil) | 6695.17 | 6273.97 |
Total Debt ($mil) | 1319.67 | 1332.55 |
Equity ($mil) | 4229.74 | 3584.0 |
Profitability | Q1 FY24 | Q1 FY23 |
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Gross Profit Margin | 23.23 | 25.03 |
EBITDA Margin | 15.25 | 18.09 |
Operating Margin | 11.8 | 15.79 |
Sales Turnover | 1.28 | 1.46 |
Return on Assets | 11.56 | 19.86 |
Return on Equity | 18.31 | 34.77 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 4.12 | 2.99 |
Debt/Capital | 0.24 | 0.27 |
Interest Expense | 12.96 | 17.65 |
Interest Coverage | 18.25 | 19.94 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 116.71 | 117.29 |
Div / share | 0.16 | 0.16 |
EPS | 1.49 | 2.2 |
Book value / share | 36.24 | 30.56 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1001282.0 | 1084222.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 15.23 for the Primary Metal Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.47 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.56. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, COMMERCIAL METALS proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CMC 8.13 | Peers 15.23 | CMC 5.02 | Peers 9.34 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CMC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CMC is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CMC 10.46 | Peers 11.93 | CMC NM | Peers 0.43 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. CMC is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CMC's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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CMC 1.47 | Peers 1.56 | CMC -36.26 | Peers 0.85 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CMC is trading at a valuation on par with its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CMC is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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CMC 0.72 | Peers 0.92 | CMC -6.38 | Peers -2.96 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CMC is trading at a discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CMC significantly trails its peers on the basis of sales growth. |
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