Commercial Metals Company (NYSE:CMC) shares fell to a low of $29.57 before closing at $29.87. Intraday shares traded counted 2.78 million, which was -162.42% lower than its 30-day average trading volume of 1.06M. CMC’s previous close was $30.15 while the outstanding shares total 120.43M. The firm has a beta of 1.28, a 12-month trailing P/E ratio of 11.08. The stock’s Relative Strength Index (RSI) is 38.45, with weekly volatility at 4.02% and ATR at 1.19. The CMC stock’s 52-week price range has touched low of $18.67 and a $34.02 high. The stock traded lower over the last trading session, losing -0.93% on 06/18/21.
Investors have identified the Steel company Commercial Metals Company as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.64 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Commercial Metals Company (CMC) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CMC, the company has in raw cash 367.35 million on their books with 22.78 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2.21 billion total, with 674.09 million as their total liabilities.
CMC were able to record -86.48 million as free cash flow during the 10/28/2021 quarter of the year, this saw their quarterly net cash flow reduce by -175.63 million. In cash movements, the company had a total of 1.2 million as operating cash flow.
Potential earnings growth for Commercial Metals Company (CMC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 10/28/2021 quarter of the year, Commercial Metals Company recorded a total of 1.46 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 8.3% coming in sequential stages and their sales for the 10/28/2021 quarter increasing by 4.82%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.23 billion trying to sell their products during the last quarter, with the result yielding a gross income of 233.93 million. This allows shareholders to hold on to 120.43M with the recently reported earning now reading 0.00 cents per share. This is a figure that compared to analyst’s prediction for their 10/28/2021 (1.04 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.56 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CMC sounds very interesting.
Is the stock of CMC attractive?
In related news, Chairman, President & CEO, Smith Barbara sold 25,000 shares of the company’s stock in a transaction that recorded on May 10. The sale was performed at an average price of 33.06, for a total value of 826,560. As the sale deal closes, the EVP & Chief Operating Officer, Porter Tracy L now sold 38,296 shares of the company’s stock, valued at 1,199,603. Also, Chairman, President & CEO, Smith Barbara sold 25,000 shares of the company’s stock in a deal that was recorded on Mar 26. The shares were price at an average price of 30.84 per share, with a total market value of 771,092. Following this completion of acquisition, the Chairman, President & CEO, Smith Barbara now holds 25,000 shares of the company’s stock, valued at 731,872. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.00%.
0 out of 9 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Commercial Metals Company. 1 analysts has assigned a Sell rating on the CMC stock. The 12-month mean consensus price target for the company’s shares has been set at $30.14.