Commercial Metals Company (CMC) - Stock Analysis

Last updated: Jun 14, 2026

Basic MaterialsClosed

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Q1 core EBITDA up ~52% YoY with margin expansion, $2.5B CP&P/Foley acquisitions, strong liquidity and trade protection news, plus ~14% 21‑day price gain put CMC in a technically strong, earnings‑backed uptrend ahead of further integration and TAG‑savings updates.

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Idea window: 2/11/2026 – 2/18/2026Sector: Basic Materials

AI Analyst Overview

Last Price
$76.69
Market Cap
$7.89B
1D Return
-0.44%
YTD Return
+11.42%

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Valuation Metrics

P/E
15.6
P/B
1.8
P/S
0.9
EV/EBITDA
12.4
Div Yield
1.04%

Fundamental Analysis

6.0

Key Financial Insights: • Margin Expansion • Cash Strength • Debt Pressure CMC's latest quarter shows improving margins and solid cash generation, but higher leverage and a stretched payout ratio remain the main risks despite reasonable sales/book valuation.

Momentum
Leverage

Price Behavior

7.0

Key Price Behavior Insights: • Support Held • Breakout Above • Near-term Stretched Support Level: $76.00, with deeper support near $74.00 and $71.50–$72.00 Resistance Level: $77.75–$77.76 CMC has turned from weakness into a constructive uptrend over the last month, holding the $71–$72 area and breaking above $76, though the sharp recent jump leaves it stretched and vulnerable to a near-term pause if momentum fades.

bullish
overextended

Sentiment & News

6.0

Key News Insights: • Share-price rally • Valuation caution • Investor-day catalyst CMC's recent stock rally and upcoming investor events are being tempered by repeated GF Value overvaluation warnings.

CMC
Overvalued
AI

AI Summary

6.0
Neutral

CMC is evolving from a pure steel-cycle play into a partially more durable earnings story driven by TAG and precast, but with the stock already pricing in much of that progress and leverage rising, the key takeaway is that upside now depends on flawless execution and cycle discipline more than multiple expansion.

MarginExpansion
Leverage
SteelCycle
AI summary updated 2 days ago

Description

Commercial Metals Company operates integrated steel and metal recycling, fabrication, and manufacturing businesses across the United States, Poland, China and other markets. It processes ferrous and nonferrous scrap for mills and refineries and produces finished and semi-finished long products and fabricated reinforcement used in construction, infrastructure, transportation and industrial applications; it also sells and rents construction-related equipment. The company was founded in 1915 and is headquartered in Irving, Texas.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Feb 11Feb 18CMCCommercial Metals Company
Q1 core EBITDA up ~52% YoY with margin expansion, $2.5B CP&P/Foley acquisitions, strong liquidity and trade protection news, plus ~14% 21‑day price gain put CMC in a technically strong, earnings‑backed uptrend ahead of further integration and TAG‑savings updates.
Closed-5.4%
Jan 1Jan 8CMCCommercial Metals Company
Commercial Metals Company benefits from accretive acquisitions increasing margins, strong steel demand, and positive regulatory tailwinds (anti-dumping ruling). The stock has steady price appreciation with positive technical momentum, underpinned by improved earnings and cash flow outlook, making it a solid hot idea for near-term gains.
Closed+2.0%
Dec 17Dec 24CMCCommercial Metals Company
Strong near-term growth driven by strategic acquisitions closed in December 2025 adding $250M EBITDA, operational improvements, sector tailwinds from infrastructure spending, and positive technical momentum with an 11% stock gain and technical breakout signals.
Closed+1.1%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.