Stock fact sheet · data as of
Commercial Metals Company (CMC): fair value, margin of safety and Wheel Score
Basic Materials · Steel · United States · Value
Is CMC undervalued?
CMC closed at 65.37 on 16 Oct 2026 against a GLS average fair value of 61.15 - 6.9% above fair value, which our screens read as "fairly priced". 5 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
There is a wide gap between DDM (11.18) 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.
The nightly engine files CMC under Value: positive earnings at a P/E of 18 or less.
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 | 50.02 | -23% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 75.30 | +15% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 95.69 | +46% | 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 | -73% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 128.11 | +96% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 83.05 | +27% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 11.18 | -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) | 4.67 | -93% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 82.00 | +25% | 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 Sunday Scan's "6 or more" rule. 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. A GLS Moat score of 3.2/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 11.8%, ROE 15.6%, ROA 9.1% - with debt at 0.32 times equity and a free-cash-flow yield of 6.6%.
The dividend yield is 1.16% with a payout ratio of 13% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Steel Products 41%, Downstream Products 28%, Raw Material Products 20% (quarter Q3 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 | 11.8% |
|---|---|---|---|
| GLS Moat | 3.2 / 10 | ROE | 15.6% |
| Debt / equity | 0.32 | ROA | 9.1% |
| Free-cash-flow yield | 6.6% | Payout ratio | 13% |
| Institutions | 10 / 10 | Insiders · Congress | 4 · 5 / 10 |
Wheel Score 65: Good
With a Wheel Score of 65 - the Good band - Commercial Metals Company falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 10/25, Health 13/20, Moat 5/15, Premium 19/20, Stability 18/20; Moat (5/15) scores lowest.
Implied volatility is 34% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (19 of 20 points). Chain open interest is 6,246 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.2M shares a day on a market cap of $7.2B, with a beta of 1.53 - 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 gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 10 / 25 | -7% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 5 / 15 | moat 3.2/10 | |
| Premium | 19 / 20 | implied volatility 34% | |
| Stability | 18 / 20 | 2.2M shares/day, $7.2B cap, beta 1.53 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 14 Jan 2027, 90 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 28 Oct 2026 (0.2000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
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. | 12.15 | 21.10 | +42% | 45Weak | $6.9B |
| GGB Gerdau S.A. | 5.05 | 14.59 | +65% | 85Prime | $9.9B |
| TX Ternium S.A. | 58.55 | 38.74 | -51% | 51Fair | $11.5B |
| SIM Grupo Simec, S.A.B. de C.V. | 26.32 | 198.95 | +87% | 39No options | $4.4B |
| PKX POSCO Holdings Inc. | 56.72 | 72,085.14 | +100% | 77Good | $17.2B |
| CRS Carpenter Technology Corporation | 380.56 | 241.95 | -57% | 69Good | $18.9B |
| RS Reliance Steel & Aluminum Co. | 407.07 | 193.13 | -111% | 51Fair | $20.8B |
| WS Worthington Steel, Inc. | 38.75 | 25.54 | -52% | 42Weak | $2.0B |
| SID Companhia Siderúrgica Nacional | 1.21 | 15.90 | +92% | 45Weak | $1.6B |
| STLD Steel Dynamics, Inc. | 242.92 | 110.63 | -120% | 56Fair | $34.8B |
| MT ArcelorMittal S.A. | 63.60 | 48.47 | -31% | 55Fair | $48.0B |
| NUE Nucor Corporation | 254.69 | 124.55 | -104% | 58Fair | $57.8B |
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Start free See the Sunday ScanQuestions about CMC
Is CMC undervalued right now?
Not meaningfully: at 65.37 the stock trades within a few percent of the GLS average fair value of 61.15 (6.9% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of CMC and what does it mean?
CMC scores 65 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CMC?
61.15 per share as of 16 Oct 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 14 Jan 2027, 90 days from the data date of 16 Oct 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 240 listed contracts with 6,246 open interest across all expiries and implied volatility of 34% 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.