Is the business good?
How good a business is CMC?
Commercial Metals Company earns 7.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.2%
Return on invested capital · cost of capital 9.0% · 1.8 points below what the capital costs: growth destroys value
- Operating margin
- 7.6%
Operating margin · Metal Fabrication median 11% · 12 months to Q3 2026
- Cash conversion
- 0.68×
Cash conversion · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.8% |
| FY2021 | 7.9% |
| FY2022 | 17% |
| FY2023 | 13% |
| FY2024 | 8.0% |
| FY2025 | 1.4% |
Details›
- Gross margin12 months to Q3 2026
- 19%
- Operating margin12 months to Q3 2026
- 7.6%
- Net margin12 months to Q3 2026
- 6.7%
- Free cash flow margin
- 4.6%
- Revenue, trailing twelve months
- $8.85B
- Free cash flow, trailing twelve months
- $405M
- Net income, trailing twelve months
- $595M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.