Commercial Metals Intrinsic Value Calculator – Mutual of America Capital Management LLC Divests Holdings in Commercial Metals
August 8, 2023
🌥️Trending News
On August 4th, 2023, Mutual of America Capital Management LLC shocked the financial markets by divesting its holdings in Commercial Metals ($NYSE:CMC). The company produces and recycles steel for various industries including automotive, construction, energy, and defense. With their diversified portfolio, they are one of the leading steel producers in the world. The decision to divest from Commercial Metals has sent shockwaves throughout the industry as the company was widely seen as a reliable investment and had been a large player in the US metals markets for many years. The reasons for the divestment remain unclear.
The news of the divestment has caused uncertainty and volatility in the markets as many investors are now questioning the future of the company’s stock. It is likely that the markets will remain volatile as investors continue to assess the impact of this surprise announcement. Regardless of the reason for the divestment, it is clear that Mutual of America Capital Management LLC’s decision to cut ties with Commercial Metals has had a significant impact on the financial markets. It remains to be seen what the long-term implications will be.
Price History
Following the news, the stock of COMMERCIAL METALS opened at $56.0 and closed at $56.7, marking a 1.4% increase from its last closing price of $55.9. Investors will be closely monitoring these stocks to see if this divestment will have any further implications on the company’s performance in the upcoming days. 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 | 34.43 |
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 – Commercial Metals Intrinsic Value Calculator
At GoodWhale, we recently conducted an analysis of COMMERCIAL METALS‘ fundamentals. Using our proprietary Valuation Line, we have determined that the intrinsic value of COMMERCIAL METALS shares is around $42.9. However, the current market price of COMMERCIAL METALS stock is $56.7, which represents an overvaluation of 32.1%. This could represent an opportunity for investors to capitalize on the discrepancy between intrinsic and market value. More…
Peers
Commercial Metals Co is one of the world’s largest producers and marketers of steel and metal products. The company operates in more than 30 countries and serves a wide range of industries, including construction, transportation, energy, and manufacturing. Commercial Metals Co’s competitors include KG Dongbusteel, Steel Dynamics Inc, Yieh Phui Enterprise Co Ltd, and a number of other large steel and metal producers.
– KG Dongbusteel ($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 of Commercial Metals now face a new reality, as Mutual of America Capital Management LLC has recently divested its holdings in the company. This is highly significant as Mutual had been a major stakeholder in the company. Analysts will now be poring over the company’s financials to gain insight into what this divestment could mean for investors. They will be looking at the company’s balance sheet, income statement, and cash flow statement to determine if the company is still a viable investment opportunity.
They may also be looking at any new competitors entering the market, and how this could affect the company’s market share. Mutual’s divestment may indicate that Commercial Metals is no longer a safe or profitable investment. Investors should take note of this news and make informed decisions accordingly.
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