Commercial Story

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CMC -- USA Stock  

USD 21.52  0.49  2.33%

Today we will go over Commercial Metals. What exactly are Commercial Metals shareholders getting in February? On the 11th of January 2021 the company is traded for 22.56. Commercial Metals has historical hype elasticity of 0.01. The average price elasticity to hype of competition is about 0.03. The entity is forecasted to increase in value after the next press release, with the price going to jump to 22.57. The current volatility of headline impact on Commercial Metals stock price is is way over 100 percent making price predictions on social media along less reliable. The price jump on the next news is estimated to be 0.04%, whereas the daily expected return is currently at 0.56%. Considering the 30-days investment horizon the next forecasted announcement will be in about 3 days.
Published over a week ago
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What is February outlook for Commercial Metals (NYSE:CMC)?
Our investment recommendation module complements current analysts and expert consensus on Commercial Metals. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time. About 87.0% of the company shares are held by institutions such as insurance companies. Commercial Metals has price-to-book (P/B) ratio of 1.42. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity last dividend was issued on the 20th of January 2021. The firm had 2:1 split on the 23rd of May 2006.
The successful prediction of Commercial Metals stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Commercial Metals, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Commercial Metals based on Commercial Metals hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Commercial Metals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Commercial Metals's related companies.

Use Technical Analysis to project Commercial expected Price

Commercial Metals technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Commercial Metals technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Commercial Metals trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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

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?

The company reported the last year's revenue of 5.48 B. Total Income to common stockholders was 278.3 M with profit before taxes, overhead, and interest of 944.8 M.
 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

Cost of Revenue Breakdown

Commercial Metals Cost of Revenue is decreasing over the years with slightly volatile fluctuation. Ongoing Cost of Revenue is projected to grow to about 4.3 B this year. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Commercial Metals Cost of Revenue is projected to decrease significantly based on the last few years of reporting. The past year's Cost of Revenue was at 4.08 Billion
20144.83 Billion
20153.02 Billion
20163.32 Billion
20174.02 Billion
20185.03 Billion
20194.53 Billion
20204.08 Billion
20214.31 Billion

Another setback for Commercial Metals investors

Current expected short fall is at -2.24. Commercial Metals has relatively low volatility with skewness of 2.31 and kurtosis of 7.29. However, we advise all investors to independently investigate Commercial Metals to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Whereas some companies in the steel industry are either recovering or due for a correction, Commercial Metals may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 11th of January 2021, we see that Commercial Metals slowly supersedes the market. The company is fairly valued with below average odds of distress within the next 24 months. Our actual 30 days Buy-Hold-Sell recommendation on the company is Buy.

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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