COMMERCIAL METALS Reports Third Quarter Earnings for FY2023
June 24, 2023
🌥️Earnings Overview
On June 22 2023, COMMERCIAL METALS ($NYSE:CMC) released their earnings report for the third quarter of FY2023, corresponding to the period ending May 31 2023. The company reported total revenue of USD 2345.0 million, a 6.8% decrease year-over-year, and net income of USD 234.0 million, a 25.1% decrease year-over-year compared to the same quarter in the previous year.
Share Price
The company’s stock opened at $48.6 and closed at $51.8, an 8.8% increase from the prior closing price of $47.6. This marked a new all-time high for COMMERCIAL METALS‘ stock, further solidifying its position as a leader in the metals industry. The positive report was driven by strong demand for steel and aluminum products, as well as increased efficiency in production facilities across the globe. This was achieved through a combination of cost-cutting measures and improved financial planning.
Overall, COMMERCIAL METALS’ third quarter earnings report was met with positivity, which was reflected in the stock’s hefty gain on Thursday. Investors continue to show their confidence in the company’s ability to generate consistent returns and grow its market share in the metals industry, which is why its stock continues to reach new heights. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Commercial Metals. More…
| Total Revenues | Net Income | Net Margin |
| 9k | 964.22 | 10.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Commercial Metals. More…
| Operations | Investing | Financing |
| 1.39k | -761.13 | -696 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Commercial Metals. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.52k | 2.5k | 34.35 |
Key Ratios Snapshot
Some of the financial key ratios for Commercial Metals are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.1% | 40.4% | 14.1% |
| FCF Margin | ROE | ROA |
| 8.9% | 20.3% | 12.2% |
Analysis
We at GoodWhale recently conducted an analysis of COMMERCIAL METALS‘s wellbeing. According to our Risk Rating, COMMERCIAL METALS is a high risk investment in terms of financial and business aspects. Our analysis revealed two risk warnings in income sheet and balance sheet. We urge potential investors to register with us in order to get a more in-depth look into these risks and make an informed decision about their investment. With our comprehensive analysis and advice, we help investors make the best decisions to maximize their return. More…
Peers
Commercial Metals Co is one of the world’s largest producers and marketers of steel and metal products. The company operates in more than 30 countries and serves a wide range of industries, including construction, transportation, energy, and manufacturing. Commercial Metals Co’s competitors include KG Dongbusteel, Steel Dynamics Inc, Yieh Phui Enterprise Co Ltd, and a number of other large steel and metal producers.
– KG Dongbusteel ($KOSE:016380)
Dongbu Steel is a South Korean steel company. It was founded in 1954 and is headquartered in Seoul. The company has four business units: steel, trading, engineering, and construction. Dongbu Steel is one of the largest steel companies in South Korea, with an annual production capacity of 5 million tons of crude steel. The company supplies steel to major Korean conglomerates such as Hyundai, POSCO, and LG. In addition to its domestic market, Dongbu Steel exports to over 60 countries around the world.
– Steel Dynamics Inc ($NASDAQ:STLD)
Steel Dynamics Inc is an American steel manufacturer. The company produces steel and steel products, including hot and cold rolled, coated, and painted steel products. The company has a market cap of 16.97B as of 2022 and a Return on Equity of 50.1%. Steel Dynamics is one of the largest steel manufacturers in the United States.
– Yieh Phui Enterprise Co Ltd ($TWSE:2023)
Yieh Phui Enterprise Co Ltd is a Taiwanese company that manufactures and sells steel products. The company has a market cap of 28.19B as of 2022 and a Return on Equity of 13.27%. The company’s products include hot and cold rolled steel, steel plates, steel pipes, and more.
Summary
Investors have been keeping a close eye on Commercial Metals Company (CMC) due to its recent earnings report for the third quarter of FY2023, ending May 31 2023. CMC reported total revenues of USD 2345.0 million, a 6.8% decrease compared to the same period last year. Net income for the same period was reported as USD 234.0 million, a 25.1% decrease compared to last year.
Despite the lower than expected results, investors responded positively to the news, pushing CMC’s stock price up on the same day. Investors are encouraged to further research CMC before investing, as there are certainly risks involved including its possible competitors, customer base and geography.
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