Commercial Metals Co (CMC) Stock Analysis
Verdict: HOLD
Severe valuation disconnect vs peers vs structural earnings decay: the model bets on mean reversion once the infrastructure cycle bottoms.
Investment score: 64/100
Analysis as of
Is Commercial Metals Co stock worth reviewing? AI model thesis
The AI model identifies a significant valuation gap where CMC trades at half the multiple of its primary peers. Despite recent earnings misses and a technical breakdown, the long-term fundamentals of its micro-mill efficiency and infrastructure tailwinds remain intact.The model views the current sell-off as a high-margin-of-safety entry point for a 90-day recovery play.
7-factor investment score
- Valuation: 82/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 45/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Commercial Metals Co opportunities and risks
What speaks for CMC
- Extreme Relative Pevaluation Discount
What speaks against CMC
- Cyclical Construction Downturn
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CMC | 11.5x | 0.8x | 8.4x | 18.6% | 6.7% | 5.9% |
| NUE | 21.8x | 1.5x | 11.2x | 14.0% | 6.8% | 1.1% |
| STLD | 23.5x | 1.7x | 13.9x | 14.0% | 7.2% | 2.1% |
| RS | 24.1x | 1.3x | 14.9x | 27.2% | 5.4% | 3.2% |
| CLF | n/a | 0.3x | 61.5x | -2.8% | -6.4% | -17.7% |
| HCC | 30.9x | 2.9x | 12.2x | 38.2% | 9.4% | -3.2% |
| Peer median | 23.5x | 1.5x | 13.9x | 14.0% | 6.8% | 1.1% |
Frequently asked questions about Commercial Metals Co (CMC)
Is CMC stock a good investment?
The cached TradeMates AI model rates Commercial Metals Co as HOLD with an investment score of 64/100. The AI model identifies a significant valuation gap where CMC trades at half the multiple of its primary peers. Despite recent earnings misses and a technical breakdown, the long-term fundamentals of its micro-mill efficiency and infrastructure tailwinds remain intact.The model views the current sell-off as a high-margin-of-safety entry point for a 90-day recovery play. This is algorithmic model output, not personal investment advice.
Is CMC stock a buy?
The TradeMates model verdict for CMC is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.