CMC

Commercial Metals Co

Industrial/Transportation


Presented:12/15/2017
Price:$20.61
Cap:$2.39B
Current Price:$53.08
Cap:$6.10B

Presented

Date12/15/2017
Price$20.61
Market Cap$2.39B
Ent Value$2.76B
P/E Ratio51.52x
Book Value$12.10
Div Yield2.33%
Shares O/S115.89M
Ave Daily Vol1,709,493
Short Int6.28%

Current

Price$53.08
Market Cap$6.10B
Commercial Metals Co. engages in the manufacture, recycle, and market steel and metal products. It operates through the following segments: Americas Recycling, Americas Mills, Americas Fabrication, and International Mill. The Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment manages domestic steel mills, scrap metal shedders and processing facilities, and railroad savage company. The Americas Fabrication segment includes rebar fabrication facilities and fence post manufacturing plants. The International Mill segment deals with the firm's mill, recycling, and fabrication operations. The company was founded by Moses Feldman in 1915 and is headquartered in Irving, TX.

Publicly traded companies mentioned herein: Commercial Metals Company (CMC), Gerdau SA (GGB), Nucor Corp (NUE), Steel Dynamics Inc (STLD)

Highlights

The presenter is long shares of Commercial Metals (CMC), a top 3 US rebar manufacturer, operating scrap yards, mills, and related processes in a vertically integrated model. The presenter sees macroeconomic tailwinds as the rebar spread closes, as well as CMC-specific upside from selling an unprofitable trading division and SG&A improvements under new management. There is further optionality around deal activity wherein CMC can be both a buyer and a seller in transactions. The presenter believes CMC shares can appreciate to $30, from $20 today.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.