Commercial Metals Company
- Open
- 66.88
- Day high
- 66.92
- Day low
- 64.74
- Prev close
- 66.41
- Volume
- 947K
- Mkt cap
- $7.3B
- P/E (TTM)
- 12.2
- EPS (TTM)
- $5.35
- P/B
- 1.6
- P/S
- 0.8
- Yield
- 1.16%
- Per share
- $0.76
- ▲Insiders net buying $504K over the last 3 months (1 open-market buy, 0 sales)
- 🏛Institutions accumulating (13F)
Commercial Metals Company (CMC) is a Basic Materials company listed on NYSE. The stock is up 23% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 0 sales (SEC Form 4).
Commercial Metals Company (CMC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CMC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 25, 2026 | $1.70 | $1.73 | +1.8% | $2.5B | +3.4% |
| Mar 26, 2026 | $1.28 | $1.16 | -9.4% | $2.1B | +2.1% |
| Oct 16, 2025 | $1.35 | $1.37 | +1.5% | $2.1B | +1.6% |
| Jun 23, 2025 | $0.85 | $0.74 | -13.0% | $2.0B | -1.2% |
| Mar 20, 2025 | $0.29 | $0.26 | -10.0% | $1.8B | +0.4% |
| Oct 17, 2024 | $0.89 | $0.90 | +1.1% | $2.0B | +0.2% |
| Jun 20, 2024 | $1.02 | $1.02 | +0.0% | $2.1B | +2.7% |
| Mar 21, 2024 | $0.75 | $0.88 | +17.3% | $1.8B | +2.5% |
| Oct 12, 2023 | $1.82 | $1.69 | -7.1% | $2.2B | +1.2% |
| Jun 22, 2023 | $1.76 | $2.02 | +14.8% | $2.3B | +4.9% |
| Mar 23, 2023 | $1.44 | $1.44 | +0.0% | $2.0B | +1.9% |
| Oct 13, 2022 | $2.23 | $2.45 | +9.9% | $2.4B | +1.0% |
CMC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 17, 2026 | HICKTON DAWNE Sdirector | Grant | 4 | $67.41 |
| Jul 17, 2026 | Perkins Tandra Cdirector | Grant | 19 | $67.41 |
| Jul 17, 2026 | McPherson John Rdirector | Grant | 42 | $67.41 |
| Jul 17, 2026 | ARRIOLA DENNIS Vdirector | Grant | 22 | $67.41 |
| Jul 17, 2026 | WETHERBEE ROBERT Sdirector | Grant | 7 | $67.41 |
| Jul 13, 2026 | MATT PETER Rdirector, officer: President and CEO | Buy | 8,230 | $61.30 |
| Jul 2, 2026 | McPherson John Rdirector | Grant | 592 | $61.21 |
| Jul 2, 2026 | MCCULLOUGH GARY Edirector | Grant | 592 | $61.21 |
| Jun 24, 2026 | Dumais Michael Rdirector | Grant | 1,214 | $71.14 |
| Apr 16, 2026 | ARRIOLA DENNIS Vdirector | Grant | 22 | $64.91 |
| Apr 16, 2026 | WETHERBEE ROBERT Sdirector | Grant | 7 | $64.91 |
| Apr 16, 2026 | HICKTON DAWNE Sdirector | Grant | 4 | $64.91 |
| Apr 16, 2026 | McPherson John Rdirector | Grant | 42 | $64.91 |
| Apr 16, 2026 | Perkins Tandra Cdirector | Grant | 19 | $64.91 |
| Apr 13, 2026 | MATT PETER Rdirector, officer: President and CEO | Tax | 4,685 | $65.57 |
Source: CMC SEC Form 4 filings, latest Jul 17, 2026. For informational purposes only — not investment advice.
See the full CMC insider & 13F page →Commercial Metals Company company profile
Overview
Commercial Metals Company (NYSE:CMC) is a Dallas-based steel and metal recycling company founded in 1915. The company has evolved from a small scrap metal dealer into one of North America's leading steel producers and recyclers. CMC operates through an integrated business model that combines scrap metal recycling, steel production via electric arc furnace mini-mills, and fabricated steel products manufacturing. The company serves construction, infrastructure, and industrial markets across the United States, Europe, and select international markets.
Business
Commercial Metals Company operates in the steel industry through three primary business segments that together form an integrated value chain from scrap metal to finished construction products. The North American Steel Group represents the company's largest segment, generating approximately 70-75% of total revenues. This division operates electric arc furnace (EAF) mini-mills that melt recycled scrap metal to produce long steel products including rebar (reinforcing bars used in concrete construction), merchant bars, light structural steel, and semi-finished billets. EAF technology is more environmentally friendly than traditional blast furnaces as it uses recycled scrap as the primary raw material rather than iron ore. The company operates several mini-mills across the United States, including newer "micro-mills" that offer greater operational flexibility and efficiency. The Europe Steel Group accounts for roughly 15-20% of revenues and operates similar steel production facilities in Poland, serving European construction markets. This segment has faced challenges due to weak European construction demand and competitive pressures, often operating at breakeven or slight losses in recent periods. The Emerging Businesses Group contributes approximately 10-15% of revenues and includes several specialized operations. The largest component is Tensar Corporation, acquired in recent years, which manufactures geosynthetic products like geogrids used in soil stabilization and road construction. This segment also includes fabricated steel products, post-tension cables for prestressed concrete, and specialty products like armor plating for military applications. The company's scrap metal recycling operations, while not a separate reporting segment, are integral to the business model. CMC processes and sells ferrous and nonferrous scrap metals to its own mills and external customers including steel mills, foundries, and metal refineries. This creates a circular economy where the company both consumes and supplies recycled materials.
Revenue model
Commercial Metals Company generates revenue through multiple interconnected business models that capitalize on the steel value chain from recycling to finished products. The primary revenue model is product sales from steel manufacturing. The company sells finished long steel products including rebar, merchant bars, and structural steel to construction companies, steel service centers, and distributors. Pricing follows market dynamics with margins determined by the spread between finished steel prices and raw material costs, primarily scrap metal. The company's integrated model provides some cost advantages as it can source scrap internally from its recycling operations. Scrap metal trading generates additional revenue through buying, processing, and selling recycled ferrous and nonferrous metals. This creates a natural hedge as rising scrap costs (input costs for steel production) are offset by higher scrap sales revenues. The company operates scrap yards and processing facilities that serve both internal steel production needs and external customers. The specialty products and services model generates higher-margin revenue through the Emerging Businesses segment. This includes manufacturing geosynthetic products, fabricated steel products, and providing construction-related equipment rental services. These businesses typically command premium pricing due to their specialized nature and technical requirements. Several factors influence the company's margins and profitability. Scrap metal prices represent the largest variable cost, with volatility directly impacting margins until pricing adjustments can be implemented. Construction activity levels drive demand for rebar and structural steel, with infrastructure spending, residential construction, and commercial building activity being key demand drivers. Steel import competition can pressure domestic pricing, though trade policies and transportation costs provide some protection. Energy costs significantly impact steel production economics, as EAF operations are electricity-intensive. Capacity utilization across the industry affects pricing power, with tight capacity supporting higher margins while excess capacity pressures spreads.
Competitive moat
Commercial Metals Company operates in a commodity-driven industry with limited sustainable competitive advantages, though the company has built several defensive characteristics that provide some protection. The company's integrated business model creates operational synergies and cost advantages. By combining scrap metal recycling with steel production, CMC can source raw materials at competitive costs while maintaining supply chain control. This integration also provides a natural hedge against scrap price volatility and reduces transportation costs compared to purchasing scrap from distant suppliers. Geographic positioning offers some competitive protection through proximity to key markets and raw material sources. The company's mini-mills are strategically located near major construction markets and scrap generation centers, reducing logistics costs and improving customer service. However, this advantage is limited as competitors can and do build facilities in attractive markets. The company's operational expertise in electric arc furnace technology and mini-mill operations provides efficiency advantages, though these are not insurmountable barriers. CMC's experience with micro-mill technology and operational excellence programs like the recently launched TAG initiative help maintain cost competitiveness. Customer relationships in construction markets provide some stability, particularly for fabricated products and specialty applications where technical expertise and service quality matter more than pure commodity pricing. The Tensar acquisition expanded this moat by adding specialized geosynthetic products with higher switching costs. However, the steel industry faces significant competitive pressures. New capacity additions from both domestic and international producers can quickly erode pricing power. Import competition remains a persistent threat, particularly during periods of global overcapacity. Substitute materials like alternative construction materials or different steel grades can impact demand. The commodity nature of most steel products limits pricing power and makes differentiation difficult. Overall, CMC's moat is relatively narrow and primarily defensive rather than providing sustainable competitive advantages. The company's integrated model and operational expertise help maintain competitiveness, but the cyclical, commodity-driven nature of the steel industry limits the durability of any competitive advantages.
Risks & safety
Commercial Metals Company demonstrates a moderate margin of safety with solid financial fundamentals but exposure to cyclical industry dynamics. **Liquidity and Solvency:** - Strong cash position of $758 million as of Q2 2025 - Total liquidity of nearly $1.6 billion including credit facilities - Current ratio of 2.82x indicates solid short-term liquidity - Net debt-to-EBITDA ratio of 1.0x represents conservative leverage - Debt-to-equity ratio of 0.30x shows minimal financial risk **Operational Cash Flow:** - Recent quarters show volatile cash generation due to cyclical nature - Q2 2025 operating cash flow of $32 million, down from stronger prior periods - Free cash flow turned negative at -$54 million in Q2 2025 due to capital investments - Historical ability to generate strong cash flows during favorable cycles **Valuation Metrics:** - P/E ratio of 54x based on recent low earnings appears elevated - EV/EBITDA of 12.6x suggests moderate valuation relative to normalized earnings - Price-to-book ratio of 1.37x indicates reasonable asset valuation - Graham number analysis suggests potential undervaluation during cyclical trough **Risk Considerations:** - High earnings volatility due to commodity price cycles - Significant capital expenditure requirements for growth projects - Exposure to construction market downturns and steel price volatility
Recent development
Commercial Metals Company has undertaken significant strategic initiatives over the past few years focused on operational excellence, capacity expansion, and portfolio diversification. The company launched the Transform, Advance, and Grow (TAG) operational excellence program, identifying over 150 initiatives across the organization to improve margins and operational efficiency. Key initiatives include reducing alloy consumption, improving melt shop yields, and optimizing production processes. Management expects this program to deliver $25 million in additional benefits during fiscal 2025, with ongoing improvements in subsequent years. Capacity expansion has been a major focus through the development of advanced micro-mill technology. The Arizona 2 micro-mill represents the first facility capable of producing both rebar and merchant bar products, offering greater operational flexibility. The facility has achieved production records and is targeting 500,000 tons annual capacity. Additionally, the company is developing Steel West Virginia, a new micro-mill project scheduled for commissioning in late 2025 to serve the underserved Northeast market. Portfolio diversification efforts include the acquisition of Tensar Corporation, which manufactures geosynthetic products for soil stabilization and road construction. This acquisition expanded CMC's presence in higher-margin, specialized construction solutions. The company has also invested in specialized products like post-tension cables and GalvaBar coating technology to capture more value in the construction value chain. Sustainability initiatives have become increasingly important, with the company launching RebarZero carbon-neutral steel products and committing to 2030 environmental goals. The focus on electric arc furnace technology, which uses recycled scrap as the primary input, positions CMC as a leader in sustainable steel production. The company has maintained a disciplined approach to capital allocation, returning significant cash to shareholders through share repurchases and dividend increases while investing in growth projects. Management has expressed interest in pursuing additional acquisitions in the early-stage construction solutions market, targeting businesses with attractive margins and market positions.
CMC company profile · for informational purposes only — not investment advice.
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