Stock fact sheet · data as of
Commercial Metals Company (CMC): fair value, margin of safety and Wheel Score
Ticker symbol CMC · Basic Materials · Steel · United States · Blend
Is CMC undervalued?
CMC closed at 66.46 on 5 Nov 2026, which is 12% above the GLS average fair value of 59.09 from 9 models. 5 of them value the shares below today's price. Our scans read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.
There is a wide gap between DDM (11.48) and 10 Cap (128.11). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for CMC, so the nightly engine files it under Blend (value score 52, growth score 48, out of 100).
Nine valuation models for CMC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 31.15 | -53% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 75.30 | +13% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 95.69 | +44% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 23.73 | -64% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 17.36 | -74% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 128.11 | +93% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 83.05 | +25% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 11.48 | -83% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 65.91 | -1% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -15.94 | -124% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 78.86 | +19% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Commercial Metals Company scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability CMC scores 5.8/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are moderate - ROIC 8.1%, ROE 14.0%, ROA 6.4% - with debt at 0.72 times equity and a free-cash-flow yield of 6.6%.
The dividend yield is 1.17% with a payout ratio of 13% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Steel Products 42%, Downstream Products 27%, Raw Material Products 20% (quarter Q4 FY2026).
Institutional ownership scores 10/10, insider activity 4/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 8.1% |
|---|---|---|---|
| GLS Moat | 5.8 / 10 | ROE | 14.0% |
| Debt / equity | 0.72 | ROA | 6.4% |
| Free-cash-flow yield | 6.6% | Payout ratio | 13% |
| Institutions | 10 / 10 | Insiders · Congress | 4 · 5 / 10 |
Wheel Score 37: Weak
With a Wheel Score of 37 Commercial Metals Company sits in the Weak band. It fails filter 3, below fair value - trades 12% above our fair value; and filter 5, can repay its debt - 3.1 years to repay its debt (over 3); Value (weak) is its weakest part.
Implied volatility is 35% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,750 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.2M shares a day on a market cap of $7.3B, with a beta of 1.54 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 12% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 3.1 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 12% above fair value | |
| Premium | Strong | implied volatility 35% | |
| Moat | Fair | moat 5.8/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Weak | 394 contracts a day, 4,750 open interest | |
| Stability | Fair | beta 1.54, $7.3B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 11 Jan 2027, 67 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Steel
The 12 companies below are the closest to Commercial Metals Company by market cap within the Steel industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CLF Cleveland-Cliffs Inc. | 12.84 | 22.31 | +42% | 50Fair | $7.3B |
| GGB Gerdau S.A. | 4.60 | 5.98 | +23% | 49Weak | $9.1B |
| TX Ternium S.A. | 51.40 | 38.52 | -33% | 36Weak | $10.1B |
| SIM Grupo Simec, S.A.B. de C.V. | 24.80 | 23.39 | -6% | 19No options | $4.1B |
| CRS Carpenter Technology Corporation | 292.10 | 252.04 | -16% | 40Weak | $14.5B |
| PKX POSCO Holdings Inc. | 51.60 | 44.28 | -17% | 32Weak | $15.6B |
| RS Reliance Steel & Aluminum Co. | 441.95 | 213.86 | -107% | 31Weak | $22.5B |
| WS Worthington Steel, Inc. | 40.48 | 25.82 | -57% | 25Weak | $2.1B |
| STLD Steel Dynamics, Inc. | 240.12 | 129.26 | -86% | 42Weak | $34.1B |
| MT ArcelorMittal S.A. | 62.49 | 52.01 | -20% | 41Weak | $47.1B |
| SID Companhia Siderúrgica Nacional | 0.7766 | 8.77 | +91% | 27Weak | $1.0B |
| SXC SunCoke Energy, Inc. | 10.45 | 20.15 | +48% | 46Weak | $887M |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about CMC
Is CMC undervalued right now?
No: at 66.46 the stock trades 12% above the GLS average fair value of 59.09 (data as of 5 Nov 2026). The margin of safety is negative.
What is the Wheel Score of CMC and what does it mean?
CMC scores 37 out of 100 (Weak) - it fails Wheel Trade Filters 3, 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for CMC?
59.09 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Commercial Metals Company report earnings next?
The next earnings report is due on 11 Jan 2027, 67 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does CMC have listed options, and how liquid are they?
Yes. The nightly snapshot found 84 listed contracts with 4,750 open interest across all expiries and implied volatility of 35% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.