Home Sectors Basic Materials Current Valuation: Commercial Metals Company (NYSE: CMC)

Current Valuation: Commercial Metals Company (NYSE: CMC)

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Commercial Metals Company trades as part of the steel industry and is part of the basic materials sector. The company CEO is Barbara R. Smith. Commercial Metals Co manufactures, recycles and markets steel and metal products and related materials and services. Its products and services include metal recycling, mill products, fabrication,construction products etc.

Previous Intraday Trading Performance:

The CMC stock showed a previous change of -4.34% with an open at 16.37 and a close of 16.09. It reached an intraday high of 16.40 and a low of 15.88.

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Liquidity:

The stock has a market cap of $1.9b with 117.9m shares outstanding, of which the float is 109.9m shares. Trading volume reached 1,061,165 shares compared to its average volume of 995,904 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Commercial Metals Company shares returned -4.11% and in the past 30 trading days it returned -7.71%. Over three months, it changed 0.35%. In one year it has changed -26.91% and within that year its 52-week high was 24.95 and its 52-week low was 15.23. CMC stock is 5.65% above its 52 Week Low.

Our calculations show a 200 day moving average of 18.25 and a 50 day moving average of 16.97. Currently CMC stock is trading -11.85% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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Earnings:

The last annual fiscal EPS for the company was reported at 1.17 that ended on 31st of August 2018, which according to the previous close, that is a PE of 13.75. Based on 5 analyst estimates, the consensus EPS for the next quarter is 0.38. The TTM EPS is 1.53, which comes to a TTM PE of 10.52. Historically, the PE high was 68.50 and the PE low was 10.40. If the stock reached its PE low, that would represent a price of 15.91, which is a decrease of -1.14%.

The dividend per share is currently 0.48, which is a dividend yield of 2.98%. Also, the payout ratio is 31.37%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 17.64, which means it is possibly undervalued and has a margin of safety of 8.78%

Indicators to Watch:

Short-interest is 7,621,075, which is 6.46% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.02. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.32

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 8.77%, return on assets is 3.88%, profit margin is 2.41%, price-to-sales is 0.38 and price-to-book is 1.32.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 4  :Past Performance Score
 4  :Financial Strength Score
 3  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.