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...Breaking it down
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 Expense | 71.37 M | 61.84 M | 55.65 M | 56.72 M | Gross Profit | 803.49 M | 944.8 M | 1.09 B | 949.63 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
| 2014 | 4.83 Billion |
| 2015 | 3.02 Billion |
| 2016 | 3.32 Billion |
| 2017 | 4.02 Billion |
| 2018 | 5.03 Billion |
| 2019 | 4.53 Billion |
| 2020 | 4.08 Billion |
| 2021 | 4.31 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.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
