Commercial Metals Company (CMC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-52.4%

$31.51

vs $66.17 price

Levered DCF

$32.22

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.9

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	11.4×	76.89×	12.79×	7.67×	4.01×	9.51×	8.88×	9.33×
P/B	1.59×	1.55×	1.44×	1.6×	1.49×	1.71×	1.31×	1.14×
P/S	0.8×	0.84×	0.78×	0.75×	0.55×	0.58×	0.45×	0.32×
EV / EBITDA	8.07×	15.56×	6.78×	5.18×	3.28×	5.97×	5.05×	5.81×
Gross margin	18.6%	15.6%	17.1%	20.6%	20.8%	16.4%	17.3%	13.8%
Operating margin	9.1%	6.7%	8.8%	13.3%	14.7%	8.9%	8.0%	5.8%
Net margin	7.0%	1.1%	6.1%	9.8%	13.7%	6.1%	5.1%	3.4%
Current ratio	2.34×	2.78×	3.94×	3.73×	2.54×	2.79×	2.97×	2.99×
Debt / equity	0.72×	0.32×	0.28×	0.28×	0.46×	0.47×	0.57×	0.77×
Interest coverage	5.96×	11.43×	14.48×	29.12×	25.86×	11.57×	7.12×	4.77×
Dividend yield	1.1%	1.2%	1.3%	1.1%	1.4%	1.5%	2.3%	3.1%
Payout ratio	12.8%	96.2%	16.2%	8.7%	5.6%	14.0%	20.4%	28.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	14.0%	2.0%	11.3%	20.9%	37.0%	18.0%	14.8%	12.2%
Return on invested capital	9.1%	6.9%	8.8%	15.3%	20.0%	12.5%	9.8%	8.2%
Return on assets	6.4%	1.2%	7.1%	12.9%	19.5%	8.9%	6.8%	5.3%
Free cash flow yield	6.4%	4.8%	9.3%	11.2%	5.1%	1.1%	24.3%	-5.5%
Earnings yield	8.8%	1.3%	7.8%	13.0%	24.9%	10.5%	11.3%	10.7%
Enterprise value	$10.1B	$6.8B	$6.5B	$7.2B	$5.7B	$4.5B	$3B	$2.9B
Net debt / EBITDA	2.08×	0.71×	0.34×	0.41×	0.48×	0.76×	0.91×	2.11×
Cash conversion cycle (days)	88	88	88	87	94	91	88	93