Commercial Story

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CMC -- USA Stock  

USD 21.52  0.49  2.33%

Commercial Metals Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 22,206.6. The current year Revenue Per Employee is expected to grow to about 648.1 K, whereas Average Assets are forecasted to decline to about 3.3 B. Today we will go over Commercial Metals. We will evaluate if Commercial Metals shares are reasonably priced going into February. Here I will also go over some technical and fundamental indicators that Commercial Metals investors should consider in February.
Published over a week ago
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What are the odds of Commercial Metals slipping in February?
The company is overvalued at 20.19 per share with modest projections ahead. The firm shows a Beta (market volatility) of -0.2272, which signifies not very significant fluctuations relative to the market. Let's try to break down what Commercial's beta means in this case. As returns on the market increase, returns on owning Commercial Metals are expected to decrease at a much lower rate. During the bear market, Commercial Metals is likely to outperform the market. Even though it is essential to pay attention to Commercial Metals historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Commercial Metals exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Commercial Metals has an expected return of -0.0036%. Please be advised to confirm Commercial Metals potential upside, accumulation distribution, and the relationship between the treynor ratio and expected short fall to decide if Commercial Metals stock performance from the past will be repeated at some point in the near future.

And What about dividends?

A dividend is the distribution of a portion of Commercial Metals earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Commercial Metals dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Commercial one year expected dividend income is about $0.24 per share.
The current year Dividend Yield is expected to grow to 0.0238, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (55.4 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-51.4 M-55.4 M
Dividend Yield 0.0207  0.0238 
Dividends per Basic Common Share 0.43  0.43 
Investing in dividend-paying stocks, such as Commercial Metals is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Commercial Metals must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Commercial Metals. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Commercial Metals's Liquidity

Commercial Metals financial leverage refers to using borrowed capital as a funding source to finance Commercial Metals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Commercial Metals financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Commercial Metals's total debt and its cash.

How Commercial utilizes its cash?

To perform a cash flow analysis of Commercial Metals, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Commercial Metals is receiving and how much cash it distributes out in a given period. The Commercial Metals cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Commercial Metals Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 909.88 Million

What did Commercial Metals file with SEC?

The SEC filings are financial statements or other formal documents of Commercial Metals that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Commercial shareholders may or may not be submitted as SEC does not always require it.
Submission of Matters to a Vote of Security Holders
Financial Statements and Exhibits. Regulation FD Disclosure. Results of Operations and Financial Condition
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Commercial shareholders may or may not be submitted as SEC does not always require it.

Acquisition by Peter Matt of 5442 shares of Commercial Metals subject to Rule 16b-3

Legal trades by Commercial Metals insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Commercial insider trading alert for grant of common stock by Peter Matt, the corporate stakeholder, on 15th of January 2021. This event was filed by Commercial Metals Co with SEC on 2021-01-15. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Commercial Metals Investor Appetite?

Commercial Metals retains a total of 119.07 Million outstanding shares. The majority of Commercial Metals outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Commercial Metals to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Commercial Metals. Please pay attention to any change in the institutional holdings of Commercial Metals as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
 2018 2019 2020 2021 (projected)
Interest Expense71.37 M61.84 M55.65 M56.72 M
Gross Profit803.49 M944.8 M1.09 B949.63 M

Ownership Breakdown

Retail Investors
Retail Investors11.91

Analysis of Commercial Metals

Current coefficient of variation is at 2015.92. As of the 10th of January, Commercial Metals shows the Risk Adjusted Performance of 0.0575, mean deviation of 2.21, and Downside Deviation of 2.75. Commercial Metals technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Commercial Metals, which can be compared to its rivals. Please confirm Commercial Metals treynor ratio, and the relationship between the variance and potential upside to decide if Commercial Metals is priced correctly, providing market reflects its regular price of 22.56 per share. Given that Commercial Metals has jensen alpha of 0.1637, we suggest you to validate Commercial Metals's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Commercial Metals

Whereas some other entities in the steel industry are either recovering or due for a correction, Commercial may not be as strong as the others in terms of longer-term growth potentials. While some in two-three weeks oriented investors may not share our view, we believe it may not be a good time to trade new shares of Commercial.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Commercial Metals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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