Commercial Metals Company Common Stock (CMC)

FairStock Score: 71/100 — STEADY

Key Financials

Strengths

• Generates $144 million in annual free cash flow (1.9% yield on market cap)
• Solid return on equity of 12.0% above cost of capital
• Revenue growth of 21.5% demonstrates strong top-line momentum
• FairStock composite score of 71/100 places it in the top tier across value, quality, and momentum factors
• Established organization with 12,690 employees providing operational scale

AI Analysis

Commercial Metals Company Common Stock is a small-cap industrials company valued at $7.6 billion. The business generates $8.4 billion in annual revenue with a 1.1% net margin and $144 million in free cash flow. From a quality standpoint, Commercial shows Altman Z-Score of 2.1 in the grey zone and adequate 12% ROE. On valuation, the stock is reasonably priced at 15.2x earnings, with trades above its Graham Number with a negative 9% margin. Growth dynamics show revenue growing at 21.5% and profit growth of 265.2%. The 1.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 71/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Commercial's 22% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $144 million in annual free cash flow (1.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer