Analysts Agree: “Hold” Rating Given to Commercial Metals Shares
May 3, 2023
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Analysts have given a consensus rating of “Hold” to the shares of Commercial Metals ($NYSE:CMC), according to the ratings given by the eight brokerages that are currently covering it. The company manufactures a wide range of steel and metal products, ranging from raw materials to finished goods. It also provides recycling services, and operates a network of scrap yards. The company has a long history of growth and profitability, and has seen its share price increase significantly over the past few years.
Despite its strong performance in recent times, analysts have decided to assign a “Hold” rating to Commercial Metals’ shares. Investors should take this into consideration before making any investment decision. Still, some analysts believe that the company has good potential for further growth, and do recommend investing in it for the long term.
Stock Price
On Tuesday, analysts gave COMMERCIAL METALS a ‘hold’ rating, with the stock opening at $45.5 and closing at $45.2, down by 1.6% from its previous closing price of 45.9. This decision by the analysts comes despite a steady increase in the company’s share prices over the past few months. The ‘hold’ rating means that investors should continue to hold onto their current COMMERCIAL METALS shares, as there may be no significant change in share prices in the near future. The analysts noted that COMMERCIAL METALS is still in a strong financial position and remain committed to their existing strategy. 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 |
| 9.17k | 1.04k | 11.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Commercial Metals. More…
| Operations | Investing | Financing |
| 1.2k | -1.16k | -442.77 |
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 |
| 6.48k | 2.7k | 32.28 |
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 |
| 16.0% | 42.3% | 14.9% |
| FCF Margin | ROE | ROA |
| 7.2% | 23.2% | 13.2% |
Analysis
GoodWhale’s analysis of COMMERCIAL METALS reveals that it is a ‘gorilla’ company, meaning it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This is evidenced by its high score on the Star Chart, which takes into account its assets, dividend, growth, and profitability. Additionally, its high health score of 8/10, considering its cashflows and debt, indicates that the company is capable of weathering any crisis without the risk of bankruptcy. Investors who are interested in companies with strong competitive advantage and steady returns may be attracted to COMMERCIAL METALS. Moreover, its high health score makes it an attractive option for those seeking a reliable and secure investment. 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 has recently received an average rating of “Hold” from eight prominent analysts. This indicates that the majority of analysts believe that the stock is worth holding on to, but not necessarily buying. Investors should take this rating into account when deciding whether or not to invest in the company.
However, it is important to assess the stock and its potential independently, as individual investor goals and strategies may vary. Analysts should pay attention to earnings reports, financial trends, and other indicators of performance when making their decisions.
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