Commercial Metals Stock Current Ratio
| CMC Stock | USD 53.70 0.75 1.38% |
Commercial Metals fundamentals help investors to digest information that contributes to Commercial Metals' financial success or failures. It also enables traders to predict the movement of Commercial Stock. The fundamental analysis module provides a way to measure Commercial Metals' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Commercial Metals stock.
| Last Reported | Projected for Next Year | ||
| Current Ratio | 3.35 | 1.81 |
Commercial | Current Ratio |
Commercial Metals Company Current Ratio Analysis
Commercial Metals' Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Current Commercial Metals Current Ratio | 2.54 X |
Most of Commercial Metals' fundamental indicators, such as Current Ratio, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Commercial Metals is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Commercial Current Ratio Driver Correlations
Understanding the fundamental principles of building solid financial models for Commercial Metals is extremely important. It helps to project a fair market value of Commercial Stock properly, considering its historical fundamentals such as Current Ratio. Since Commercial Metals' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Commercial Metals' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Commercial Metals' interrelated accounts and indicators.
Click cells to compare fundamentals
Commercial Current Ratio Historical Pattern
Today, most investors in Commercial Metals Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Commercial Metals' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current ratio growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Commercial Metals current ratio as a starting point in their analysis.
Commercial Metals Current Ratio |
| Timeline |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
| Competition |
Commercial Discontinued Operations
Discontinued Operations |
|
In accordance with the recently published financial statements, Commercial Metals has a Current Ratio of 2.54 times. This is 33.68% lower than that of the Metals & Mining sector and 5.22% lower than that of the Materials industry. The current ratio for all United States stocks is 17.59% lower than that of the firm.
Commercial Current Ratio Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Commercial Metals' direct or indirect competition against its Current Ratio to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Commercial Metals could also be used in its relative valuation, which is a method of valuing Commercial Metals by comparing valuation metrics of similar companies.Commercial Metals is currently under evaluation in current ratio category among related companies.
Commercial Metals Current Valuation Drivers
We derive many important indicators used in calculating different scores of Commercial Metals from analyzing Commercial Metals' financial statements. These drivers represent accounts that assess Commercial Metals' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Commercial Metals' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 2.5B | 3.9B | 4.9B | 6.6B | 5.9B | 6.2B | |
| Enterprise Value | 3.0B | 4.5B | 5.7B | 7.2B | 6.4B | 6.8B |
Commercial Fundamentals
| Return On Equity | 0.17 | ||||
| Return On Asset | 0.089 | ||||
| Profit Margin | 0.08 % | ||||
| Operating Margin | 0.07 % | ||||
| Current Valuation | 6.9 B | ||||
| Shares Outstanding | 115.71 M | ||||
| Shares Owned By Insiders | 0.73 % | ||||
| Shares Owned By Institutions | 88.92 % | ||||
| Number Of Shares Shorted | 2.42 M | ||||
| Price To Earning | 22.20 X | ||||
| Price To Book | 1.51 X | ||||
| Price To Sales | 0.76 X | ||||
| Revenue | 8.8 B | ||||
| Gross Profit | 1.81 B | ||||
| EBITDA | 1.39 B | ||||
| Net Income | 859.76 M | ||||
| Cash And Equivalents | 592.33 M | ||||
| Cash Per Share | 5.73 X | ||||
| Total Debt | 1.15 B | ||||
| Debt To Equity | 0.50 % | ||||
| Current Ratio | 2.54 X | ||||
| Book Value Per Share | 36.39 X | ||||
| Cash Flow From Operations | 1.34 B | ||||
| Short Ratio | 2.27 X | ||||
| Earnings Per Share | 5.76 X | ||||
| Price To Earnings To Growth | 12.25 X | ||||
| Target Price | 65.5 | ||||
| Number Of Employees | 13.02 K | ||||
| Beta | 1.33 | ||||
| Market Capitalization | 6.3 B | ||||
| Total Asset | 6.64 B | ||||
| Retained Earnings | 4.1 B | ||||
| Working Capital | 2.3 B | ||||
| Current Asset | 2.05 B | ||||
| Current Liabilities | 821.12 M | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 2.18 % | ||||
| Net Asset | 6.64 B | ||||
| Last Dividend Paid | 0.64 |
About Commercial Metals Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Commercial Metals's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Commercial Metals using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Commercial Metals based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Commercial Metals
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Commercial Metals position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Commercial Metals will appreciate offsetting losses from the drop in the long position's value.Moving together with Commercial Stock
| 0.65 | AA | Alcoa Corp Financial Report 17th of July 2024 | PairCorr |
| 0.63 | AG | First Majestic Silver Financial Report 2nd of May 2024 | PairCorr |
| 0.64 | AU | AngloGold Ashanti plc Financial Report 28th of June 2024 | PairCorr |
Moving against Commercial Stock
| 0.69 | NC | NACCO Industries | PairCorr |
| 0.65 | VALE | Vale SA ADR Earnings Call Today | PairCorr |
| 0.64 | X | United States Steel Earnings Call Tomorrow | PairCorr |
The ability to find closely correlated positions to Commercial Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Commercial Metals when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Commercial Metals - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Commercial Metals to buy it.
The correlation of Commercial Metals is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Commercial Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Commercial Metals moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Commercial Metals can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Commercial Metals Piotroski F Score and Commercial Metals Altman Z Score analysis. For information on how to trade Commercial Stock refer to our How to Trade Commercial Stock guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Complementary Tools for Commercial Stock analysis
When running Commercial Metals' price analysis, check to measure Commercial Metals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Commercial Metals is operating at the current time. Most of Commercial Metals' value examination focuses on studying past and present price action to predict the probability of Commercial Metals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Commercial Metals' price. Additionally, you may evaluate how the addition of Commercial Metals to your portfolios can decrease your overall portfolio volatility.
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |
Is Commercial Metals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Commercial Metals. If investors know Commercial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Commercial Metals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.52) | Dividend Share 0.64 | Earnings Share 5.76 | Revenue Per Share 71.999 | Quarterly Revenue Growth (0.08) |
The market value of Commercial Metals is measured differently than its book value, which is the value of Commercial that is recorded on the company's balance sheet. Investors also form their own opinion of Commercial Metals' value that differs from its market value or its book value, called intrinsic value, which is Commercial Metals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Commercial Metals' market value can be influenced by many factors that don't directly affect Commercial Metals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Commercial Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Commercial Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Commercial Metals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.