Commercial Metals CompanyCMC
NYSE•Industrials•Metal Fabrication
Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through three segments: North America Steel Group; Europe Steel Group; and Emerging Businesses Group. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers. It also manufactures and sells finished long steel products, including reinforcing bar, merchant bar, light structural, wire rod, and other special sections, as well as semi-finished billets for rerolling and forging applications. In addition, the company provides fabricated rebar used to reinforce concrete primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums, and dams; sells and rents construction-related products and equipment to concrete installers and other businesses; and manufactures and sells strength bars for the truck trailer industry, special bar steels for the energy market, and armor plates for military vehicles. Further, it sells wire meshes, welded steel mesh, wire rod, cold rolled rebar, cold rolled wire rod, assembled rebar cages and other fabricated rebar by-products to fabricators, manufacturers, distributors, and construction companies. The company was founded in 1915 and is headquartered in Irving, Texas.
Commercial Metals Company (CMC) reported trailing twelve months revenue of $8.39B as of February 2026, a 8.4% increase year-over-year. Quarterly revenue reached $2.13B, reflecting continued top-line momentum.
Commercial Metals Company generated $505.22M in TTM net income, with quarterly EBITDA of $424.23M. The operating margin expanded from 8.7% to 15.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (15.1%) and net margin (4.4%) indicates moderate non-operating costs. Net margin has improved from 1.5% a year ago, signaling stronger bottom-line efficiency.
CMC trades at a P/E of 17.1x (in line with broad market averages) and a P/S of 1.0x. The price-to-book ratio of 2.0x reflects a moderate premium to book value.
The company generated $43.57M in free cash flow over the trailing twelve months, a 181.0% increase year-over-year, indicating cash generation ability. The balance sheet shows $9.56B in total assets with $3.31B in long-term debt against $4.41B in stockholders equity for a debt-to-equity ratio of 0.8. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~13.4%, suggesting durable pricing power and cost discipline.
ROE is positive at ~6.8% on average, adequate but below the threshold typically associated with wide moats.
7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has grown modestly overall (~3.0%) but trajectory is uneven, suggesting a competitive or cyclical business.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~14.6% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
Debt-to-equity has risen 161.0% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.0% — net buybacks are reducing shares outstanding and boosting per-share value.