Commercial Metals manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally. The company was founded in 1915 and is based in Irving, Texas.
CMC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for COMMERCIAL METALS Co. To summarize, we found that COMMERCIAL METALS Co ranked in the 95th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3815.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for COMMERCIAL METALS Co ended up being:
Its compound free cash flow growth rate, as measured over the past 5.54 years, is 0.92% -- higher than 89.36% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 71.08% of its sector Basic Materials.
COMMERCIAL METALS Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 9.15% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PQG, FUL, BXC, TGLS, and FRTA can be thought of as valuation peers to CMC, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Commercial Metals (CMC): FQ1 Non-GAAP EPS of $0.58 beats by $0.05; GAAP EPS of $0.53 misses by $0.01.Revenue of $1.39B (+0.7% Y/Y) beats by $20M.Core EBITDA of $156.6M; achieved lowest mill conversion cost per ton in last two years.Shipment volumes of finished steel products across North America and Europe increased...