Commercial Metals Intrinsic Value – Commercial Metals Shares Down 6% After KeyBanc Downgrade to Sector Weight
February 24, 2023
Trending News ☀️
COMMERCIAL ($NYSE:CMC): The shareholders of JTC PLC had some good news last year when it was revealed that a variety of insiders invested in the company. This indicates that the insiders, who are highly knowledgeable and experienced in the industry, had enough faith in the future of JTC PLC to want to invest their own funds. This is a positive sign as it shows that people within the company believe that JTC PLC has potential, and are willing to risk their own money towards that goal. Insiders often have access to more knowledge than regular shareholders and can see much deeper into the details of a company, so their investments speak volumes about their confidence in JTC PLC’s future. Moreover, these investments are generally long-term investments, so these insiders are signaling that they plan to stick with JTC PLC for the long haul.
Insider investments also tend to generate higher returns than ordinary investments, which is another positive for shareholders. On top of that, these investments also provide a source of capital for the company, which opens up more opportunities for growth and expansion in the future. Overall, the fact that so many insiders chose to invest in JTC PLC last year is an incredibly positive sign for current and prospective shareholders. It confirms the belief that the company is well-positioned to succeed in the future and attract more investments.
Share Price
Last year, JTC PLC experienced a surge in insider investing which could be a positive sign for shareholders. So far, media sentiment has been mostly positive for the company; on Thursday, its stock opened at £7.4 and closed at the same price, a 0.8% rise from the previous closing price. These developments have led to speculation that shareholders have been more confident in the company, compared to other stocks. This is further evidence to show that the outlook for JTC PLC is brighter than many investors believed. 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 |
| 9.16k | 1.25k | 11.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Commercial Metals. More…
| Operations | Investing | Financing |
| 1.05k | -811.53 | -69.2 |
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 |
| 6.27k | 2.69k | 30.56 |
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 |
| 15.6% | 48.4% | 18.0% |
| FCF Margin | ROE | ROA |
| 5.8% | 29.9% | 16.4% |
Analysis – Commercial Metals Intrinsic Value
At GoodWhale we conducted an analysis of JTC PLC’s fundamentals, and our proprietary Valuation Line revealed a fair value of JTC PLC shares around £7.2. Currently, JTC PLC stock is trading at £7.4, a price slightly overvalued by 3.4%. This suggests that investors may be overestimating the earnings growth potential of the company or may underestimate the company risk. Despite this, we think that the current price is still relatively fair compared to our valuation. More…
Summary
Investing analysis in JTC PLC has been mostly positive in media sentiment. Last year showed promising signs for investors as key insiders invested in the company, indicating a strong future for shareholders. Analysts have noted that the company has seen strong performance in the stock market and is likely to continue to perform well due to internal investments, strong fundamentals, and a reliable customer base.
Predictions suggest that the company could see a period of growth and increased value for shareholders in the future. Overall, investing in JTC PLC could prove to be a sound decision.
Trending News ☀️
The hedgeye analyst, Howard Penney, raised a serious concern after analyzing Dutch Bros Inc. on Thursday. He pointed out that the conglomerate has not placed enough emphasis on profitability while expanding rapidly and this could spell disaster in the long-term. The analyst went on to warn that the company may face an estimated 50% downside risk from current levels. Penney’s advice to investors is to proceed with caution when considering the investments of the company. He believes that investors should weigh in their decisions regarding Dutch Bros Inc. with an understanding of their risks and rewards.
Furthermore, the analyst suggests that investors should take a long-term view and diversify their portfolios to limit their exposure to any single entity. It remains to be seen if Dutch Bros Inc will be able to turn the situation around and prove Howard Penney’s predictions wrong. In the meantime, it is important for investors to be mindful of this warning and make wise decisions with regards to their investments in Dutch Bros Inc.
Price History
On Thursday, DUTCH BROS Inc., the privately-held American drive-through coffee company, saw its stock tumble 10.4%, for a plunge from its previous closing price of $38.0 to the current day’s closing price of $34.0. This is a significant drop and has many investors worried. Hedgeye Analyst Howard Penney has warned of a 50% downside risk to Dutch Bros stock, which currently sits at $35.1.
Penney cites the significant competition in the coffee industry as a factor for his bearish outlook on Dutch Bros stock. With competitors like Starbucks and Dunkin Donuts, it could be difficult for Dutch Bros to grow and sustain its market share long-term. Live Quote…
Analysis – Commercial Metals Intrinsic Value
Our team at GoodWhale recently completed an analysis of DUTCH BROS’s wellbeing. After a thorough review of the company’s financials, we were able to calculate its intrinsic value using our proprietary Valuation Line. This analysis resulted in an assessment that the intrinsic value of DUTCH BROS share is approximately $44.4. Currently, DUTCH BROS stock is traded at $34.0, which is a 23.5% discount to its intrinsic value. This suggests that the stock may be undervalued and could be a good investment opportunity. More…
Summary
Dutch Bros Inc. faces an estimated 50% downside risk from current levels, according to a recent analysis by Hedgeye analyst Howard Penney. Penney analyzed the company’s fundamental and technical data and concluded that the stock price is significantly overvalued given the current market environment. Penney cautioned that there is potential for substantial downside risk if the company cannot deliver on its projected earnings.
Traders reacted to the news by selling off Dutch Bros stock, resulting in a significant drop in the price. Investors should consider Penney’s analysis carefully and exercise caution when considering any investments in Dutch Bros Inc. at this time.
Trending News ☀️
Sinofert Holdings Ltd. 297 has recently announced the appointment of a new Chief Financial Officer; the new CFO comes from Syngenta, where he worked for several years in various roles. The new CFO, Mr. Chen Kun, is not only experienced in finance, but also brings a wealth of knowledge from his time at Syngenta. With his appointment as CFO of Sinofert Holdings Ltd. 297, Mr. Chen Kun is expected to bring a fresh perspective and provide supportive guidance to the company. His addition to the leadership team is expected to help Sinofert Holdings Ltd.
297 reach their goals for growth and profitability. Mr. Chen Kun’s previous success in helping SyngentaChina reach its business objectives is sure to be an asset to the company. Overall, the appointment of Mr. Chen Kun is a welcome addition to Sinofert Holdings Ltd. 297’s leadership team and is sure to prove beneficial to the company’s business objectives and performance.
Market Price
SINOFERT HOLDINGS LI. 297 (SINOFERT) welcomed a new Chief Financial Officer (CFO) this Wednesday. The company appointed former Syngenta executive, Miao Grace Yung, as its new CFO. The news was not well-received by investors in SINOFERT.
On the other hand, SINOFERT shares opened at HK$1.0 on Wednesday and finished at the same price, down by 2.0% from its previous close of HK$1.0. It remains to be seen how Yung’s appointment will affect the financial performance of SINOFERT going forward. Still, investors have remained cautiously optimistic about the news and will be eagerly awaiting for the upcoming financial reports to see if the company has indeed made a positive step forward. Live Quote…
Analysis – Commercial Metals Intrinsic Value
At GoodWhale, we have conducted an in-depth analysis of SINOFERT HOLDINGS’s wellbeing to provide our clients with an accurate Risk Rating for their investments. According to our analysis, SINOFERT HOLDINGS is classified as a medium risk investment in terms of both financial and business aspects. In addition to the Risk Rating, GoodWhale has identified two risk warnings in the income sheet and balance sheet of SINOFERT HOLDINGS. We encourage interested clients to register with us to gain access to this information and further evaluate their potential investments. Our analysis and insights can help you make informed decisions to maximize your returns. More…
Summary
SINOFERT HOLDINGS, one of the leading fertilizer producers in China, recently welcomed a new Chief Financial Officer (CFO) from Syngenta, an international agribusiness. This strategic move is expected to ensure efficient financial management and sound investment analysis in SINOFERT’s operations. The appointment of the CFO will help protect shareholders’ investments, ensure financial compliance and oversee SINOFERT’s investment decisions.
This addition to their executive board has been met with optimism from the investors due to his background in agricultural businesses. The CFO is expected to provide valuable insights into the company’s operations and will help promote its continued growth in the future.
Trending News ☀️
KeyBanc issued the downgrade Thursday, citing CMC’s nearing the bank’s price target and slight downward revisions on estimates. This was the impetus for the 6.6% decrease in Commercial Metals shares on that day. Despite this, KeyBanc acknowledges the potential benefits of the U.S. infrastructure initiative and believes CMC will be a major beneficiary of the multiyear plan. Therefore, the bank maintains the mid- to long-term outlook for the stock to remain positive. Moreover, KeyBanc suggests that investors explore alternative opportunities in the sector.
It has already been estimated that around 2 million new jobs will be created as a result. This potential investment should bode well for companies in the steel industry like CMC, as they are likely to see increased demand for products. As a result, investors can expect to see Commercial Metals’ profit margins continue to improve over time.
Price History
On Thursday, shares of the COMMERCIAL METALS Company (CMC) dropped 6%, following a downgrade from KeyBanc to sector weight. The stock opened the day at $54.9 and closed at $52.4, a decrease from its previous closing price of $55.6. This is the latest in a series of stock dips for COMMERCIAL METALS as investors continue to be cautious about the global economy. Despite the downtick, COMMERCIAL METALS has remained focused on its core goals of creating strong financial performance and providing innovative products for its customers. Live Quote…
Analysis – Commercial Metals Intrinsic Value
At GoodWhale, we recently conducted an analysis of COMMERCIAL METALS‘ fundamentals. Our proprietary Valuation Line indicated that the fair value of COMMERCIAL METALS’ share is around $40.6. The stock is currently trading at $52.4, implying a 29.2% overvaluation. We believe that investors should exercise caution when considering their investments in COMMERCIAL METALS, given the potential risk associated with an overvalued stock. More…
Peers
Commercial Metals Co is one of the world’s largest producers and marketers of steel and metal products. The company operates in more than 30 countries and serves a wide range of industries, including construction, transportation, energy, and manufacturing. Commercial Metals Co’s competitors include KG Dongbusteel, Steel Dynamics Inc, Yieh Phui Enterprise Co Ltd, and a number of other large steel and metal producers.
– KG Dongbusteel ($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
Commercial Metals (CMC) recently caught the attention of investors when its stock price dropped 6% following a KeyBanc downgrade from “overweight” to “sector weight”. This unexpected change caused investors to worry about potential implications for both the current stock price and the overall performance of the company. Analysts have noted that CMC has recently been facing weak demand for its steel products, recently suffered from a lack of operational efficiency, and may lack the resources to invest in new growth opportunities.
In spite of these potential risks, CMC’s long-term outlook remains positive due to its solid balance sheet, cost-cutting initiatives, and recent investments in new technology projects. Investors should look closer at these indicators before making a decision on whether to buy, sell, or hold CMC stock.
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