📊 CMC Key Takeaways
Investment Thesis
Commercial Metals demonstrates solid financial stability with strong liquidity (4.47x current ratio) and a healthy debt position (0.74x D/E), but faces significant profitability headwinds evidenced by an 82.6% YoY decline in net income and weak margins (8.4% net margin). The company's low ROE (4.1%) and ROA (1.9%) indicate inefficient capital deployment despite substantial asset base of $9.2B.
CMC Strengths
- Exceptional liquidity position with $3.0B cash and 4.47x current ratio providing financial flexibility
- Conservative leverage at 0.74x debt-to-equity with strong 7.4x interest coverage ratio
- Positive operating cash flow of $204.2M and free cash flow of $78.8M supporting sustainability
- Robust balance sheet with $4.3B stockholders' equity providing buffer against downturns
CMC Risks
- Severe profitability compression with net income declining 82.6% YoY and EPS down 82.1% indicating cyclical downturn or structural challenges
- Weak operational efficiency with net margin of 8.4% and ROE of only 4.1%, suggesting poor capital returns
- Revenue decline of 1.6% YoY combined with gross margin of only 12.4% indicates pricing pressure in competitive steel industry
- Modest free cash flow margin of 3.7% limits reinvestment and shareholder return capacity relative to asset size
Key Metrics to Watch
- Quarterly revenue trends and gross margin recovery to assess if cyclical downturn is stabilizing
- Operating margin trajectory and operating leverage as revenue stabilizes
- Return on equity improvement and capital efficiency metrics given low 4.1% current ROE
- Free cash flow consistency and conversion rate as indicator of underlying business quality
- Debt reduction progress to further strengthen balance sheet cushion
CMC Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.7% FCF margin may limit capital allocation flexibility. Strong liquidity with a 4.47x current ratio provides a solid financial cushion.
CMC Profitability Ratios
CMC vs Default Sector
How COMMERCIAL METALS Co compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CMC Balance Sheet & Liquidity
CMC 5-Year Financial Trend
5-Year Trend Summary: COMMERCIAL METALS Co's revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.25 reflects profitable operations.
CMC Growth Metrics (YoY)
CMC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.9B | -$175.7M | $-1.54 |
| Q3 2025 | $2.0B | -$67.1M | $-0.59 |
| Q2 2025 | $1.8B | $25.5M | $0.22 |
| Q1 2025 | $1.9B | -$175.7M | $1.49 |
| Q3 2024 | $2.1B | $119.4M | $1.02 |
| Q2 2024 | $1.8B | $85.8M | $0.73 |
| Q1 2024 | $2.0B | $176.3M | $1.49 |
| Q3 2023 | $2.3B | $234.0M | $1.98 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CMC Capital Allocation
CMC SEC Filings
Access official SEC EDGAR filings for COMMERCIAL METALS Co (CIK: 0000022444)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Feb 4, 2026 | 4 | xslF345X05/wk-form4_1770233943.xml | View → |
| Feb 4, 2026 | 4 | xslF345X05/wk-form4_1770233878.xml | View → |
| Feb 4, 2026 | 4 | xslF345X05/wk-form4_1770233857.xml | View → |
| Feb 4, 2026 | 4 | xslF345X05/wk-form4_1770233839.xml | View → |
| Feb 4, 2026 | 4 | xslF345X05/wk-form4_1770233825.xml | View → |
❓ Frequently Asked Questions about CMC
What is the AI rating for CMC?
COMMERCIAL METALS Co (CMC) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMC's key strengths?
Exceptional liquidity position with $3.0B cash and 4.47x current ratio providing financial flexibility. Conservative leverage at 0.74x debt-to-equity with strong 7.4x interest coverage ratio.
What are the risks of investing in CMC?
Severe profitability compression with net income declining 82.6% YoY and EPS down 82.1% indicating cyclical downturn or structural challenges. Weak operational efficiency with net margin of 8.4% and ROE of only 4.1%, suggesting poor capital returns.
What is CMC's revenue and growth?
COMMERCIAL METALS Co reported revenue of $2.1B.
Does CMC pay dividends?
COMMERCIAL METALS Co pays dividends, with $20.0M distributed to shareholders in the trailing twelve months.
Where can I find CMC SEC filings?
Official SEC filings for COMMERCIAL METALS Co (CIK: 0000022444) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CMC's EPS?
COMMERCIAL METALS Co has a diluted EPS of $1.58.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.