Commercial Metals Company (CMC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Commercial Metals Company (CMC) Materials & Commodity Exposure

Commercial Metals Company (CMC) is a vertically integrated steel manufacturer, recycler, and fabricator with a global presence. The company distinguishes itself through its comprehensive range of long steel products and services, catering to diverse sectors including construction, industrial, and energy, with a focus on sustainable practices.

What Is the Investment Thesis for CMC?

With a market capitalization of $7.37B and a P/E ratio of 12.45, CMC demonstrates solid financial performance. The company's 6.0% profit margin and 17.7% gross margin reflect its operational efficiency. Key growth catalysts include increased infrastructure spending and demand for sustainable steel solutions. However, investors may want to evaluate potential risks such as fluctuations in raw material prices and cyclical demand in the construction industry. The company's beta of 1.47 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

CMC Key Highlights

Market capitalization of $7.37B, reflecting substantial investor confidence in the company's market position.

• P/E ratio of 12.45, indicating a reasonable valuation relative to earnings.
• Profit margin of 6.0%, showcasing the company's ability to generate profits from its operations.
• Gross margin of 17.7%, demonstrating effective cost management in the production and sale of steel and metal products.
• Dividend yield of 1.04%, providing a steady income stream for investors.

Who Are CMC's Competitors?

CMC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are CMC's Key Strengths?

Vertically integrated operations

• Extensive recycling capabilities
• Diversified product portfolio
• Global presence

What Are CMC's Weaknesses?

Exposure to cyclical demand in the construction industry

• Sensitivity to fluctuations in raw material prices
• Dependence on infrastructure spending
• Competition from larger steel producers

What Could Drive CMC Stock Higher?

Government infrastructure spending initiatives boosting demand for steel products.

• Expansion of recycling operations leading to reduced raw material costs.
• Potential acquisitions of smaller steel manufacturers to expand market presence.
• Launch of new high-strength and corrosion-resistant steel products.

What Are the Key Risks for CMC?

Economic downturns reducing demand for steel in construction and manufacturing.

• Fluctuations in raw material prices impacting profitability.
• Increased competition from domestic and international steel producers.
• Changes in environmental regulations increasing compliance costs.

What Are the Growth Opportunities for CMC?

• Increased Infrastructure Spending: The ongoing infrastructure development initiatives in the United States and globally present a significant growth opportunity for CMC. With governments investing heavily in roads, bridges, and other infrastructure projects, the demand for steel and fabricated steel products is expected to rise. CMC's established presence and fabrication capabilities position it to capitalize on this trend, potentially increasing revenue by 10-15% over the next three years.
• Expansion of Recycling Operations: As environmental concerns grow, the demand for recycled steel is increasing. CMC's recycling operations provide a competitive advantage by reducing raw material costs and appealing to environmentally conscious customers. Expanding these operations could lead to a 5-8% increase in overall profitability within the next two years, as recycled steel commands a premium in the market.
• Geographic Diversification: CMC's operations in the United States, Poland, and China provide a diversified revenue stream. Further expansion into emerging markets with high growth potential, such as Southeast Asia and India, could unlock new opportunities. Entering these markets could contribute an additional 8-12% to revenue growth over the next five years.
• Product Innovation: Developing and introducing new steel products with enhanced properties, such as high-strength and corrosion-resistant steel, can cater to specific industry needs. This innovation can attract new customers and increase market share. Investing in research and development could result in a 6-10% increase in revenue from new product lines within the next four years.
• Strategic Acquisitions: Acquiring smaller steel manufacturers or fabricators can expand CMC's market presence and product offerings. Strategic acquisitions can provide access to new technologies, customer bases, and geographic regions. Successfully integrating acquired companies could lead to a 7-11% increase in overall revenue and market share within the next three years.

What Are CMC's Competitive Advantages?

• Vertically integrated operations, providing control over the supply chain.
• Extensive recycling operations, reducing raw material costs.
• Diversified product portfolio, catering to various industries.
• Established presence in multiple geographic regions.

What Does CMC Do?

Commercial Metals Company (CMC) was founded in 1915 and has evolved into a leading vertically integrated manufacturer, recycler, and fabricator of steel and metal products. Headquartered in Irving, Texas, CMC operates across the United States, Poland, China, and internationally. The company's core business revolves around processing and selling ferrous and nonferrous scrap metals to a wide array of consumers, including steel mills, foundries, and aluminum manufacturers. CMC also manufactures and sells finished long steel products such as rebar, merchant bar, light structural sections, and semi-finished billets. CMC's fabrication services provide steel products that reinforce concrete structures for commercial and non-commercial buildings, infrastructure projects, and industrial facilities. These include hospitals, convention centers, power plants, highways, bridges, and stadiums. The company also sells and rents construction-related products and equipment. Additionally, CMC manufactures specialty steel products like strength bars for the truck trailer industry, special bar steels for the energy market, and armor plates for military vehicles. The company's commitment to sustainability is reflected in its recycling operations, which contribute to resource efficiency and environmental stewardship.

What Products and Services Does CMC Offer?

• Manufactures finished long steel products, including rebar, merchant bar, and light structural sections.
• Recycles ferrous and nonferrous scrap metals.
• Fabricates steel products for concrete reinforcement in construction projects.
• Sells and rents construction-related products and equipment.
• Manufactures strength bars for the truck trailer industry.
• Produces special bar steels for the energy market.
• Creates armor plates for military vehicles.

How Does CMC Make Money?

• Manufactures and sells finished long steel products.
• Processes and sells ferrous and nonferrous scrap metals.
• Provides fabricated steel products and related services.
• Generates revenue through sales to steel mills, foundries, construction companies, and other consumers.

What Industry Does CMC Operate In?

Commercial Metals Company operates in the steel industry, a sector characterized by cyclical demand and sensitivity to macroeconomic factors. The industry is currently experiencing increased demand due to infrastructure development projects and a growing focus on sustainable building materials. CMC's vertically integrated model and recycling operations position it favorably in this environment. Competitors include GGB: Gerdau S.A. and TX: Ternium S.A., both of which have significant market presence. The global steel market is projected to reach $1 trillion by 2028, driven by urbanization and industrialization.

Who Are CMC's Key Customers?

• Steel mills and foundries.
• Aluminum sheet and ingot manufacturers.
• Brass and bronze ingot makers.
• Construction companies.
• Manufacturers and distributors.

Commercial Metals Company (CMC) Valuation Context

Valued at $7.37B, CMC is classified as a mid-cap stock. Analyst price targets span from $75.00 to $89.00, with a consensus of $82.00. At the current price of $66.62, that implies approximately 23% upside potential. Relative to its peer group, CMC's quantitative score of 60/100 is roughly in line with the peer average of 65/100.

CMC Revenue & Earnings Trend

In Q3 FY2026, CMC generated $2.48B in top-line revenue, marking a sequential increase of 16.5%. The company recorded net income of $173.0M, with diluted EPS of $1.55. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Basic Materials company. Across the four most recent quarters, CMC averaged $1.33 in diluted EPS.

Company Profile

Commercial Metals Company operates in the Steel industry within the Basic Materials sector. It is headquartered in Irving, US. The company is led by CEO Peter R. Matt. CMC has traded publicly since 1980.

Return on equity for Commercial Metals Company stands at 13.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.1%, showing how much profit it generates from its asset base. CMC trades at a trailing price-to-earnings ratio of 12.45, below the Basic Materials sector average of ~21.40x. A current ratio of 2.33 indicates the company holds enough short-term assets to cover its near-term obligations.

Commercial Metals Company's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.98 places it in the grey zone, a middle ground that warrants monitoring.

Commercial Metals Company has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 1.9% below estimates on average.

Over the past six months, Commercial Metals Company insiders filed 18 SEC Form 4 transactions — 1 sales and 17 purchases. On net that is roughly 9K shares acquired (about $541K) — insiders putting money in tends to read as conviction.

CMC Financials

CMC Latest News

CMC Analyst Consensus

CMC MoonshotScore

What Investors Ask About Commercial Metals Company (CMC) — Basic Materials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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