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If You Invested $1000 in Commercial Metals 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Commercial Metals (CMC - Free Report) ten years ago? It may not have been easy to hold on to CMC for all that time, but if you did, how much would your investment be worth today?
Commercial Metals' Business In-Depth
With that in mind, let's take a look at Commercial Metals' main business drivers.
Irving, TX- based Commercial Metals Company manufactures, recycles and markets steel and metal products, related materials and services. It provides these through a network of facilities that includes eight electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland.
During the second quarter of fiscal 2018, the company completed the exit of the International Marketing and Distribution segment. Commercial Metals announced that the company has realigned its reporting structure into two operating segments — North America and Europe — from the beginning of fourth-quarter fiscal 2020. North America includes the company's former Americas Recycling, Americas Mills and Americas Fabrication business segments. Europe comprises the company's former International Mill segment.
North America (87% of fiscal 2021 revenues) segment processes scrap metals for use as a raw material by manufacturers of new metal products. This segment operates 34 scrap metal processing facilities, with 14 locations in Texas, five locations in each of Florida and South Carolina, two locations in each of Georgia, Missouri, and North Carolina, and one location in each of Kansas, Louisiana, Oklahoma and Tennessee.
Americas Mills business includes three EAF mini mills, two EAF micro mills, a rerolling mill, two scrap metal shredders, eight scrap metal processing facilities that directly support the mills, and a railroad salvage operation, all of which are based in the United States. Americas Fabrication business consists of steel fabrication facilities that bend, weld, cut and fabricate steel, primarily rebar, and produce steel fence posts; warehouses that sell or rent products for the installation of concrete; and facilities that heat-treat steel to strengthen and provide flexibility.
Europe (13%) segment is comprised of mini mill, recycling and fabrication operations located in Poland.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Commercial Metals a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2012 would be worth $3,146.30, or a gain of 214.63%, as of August 8, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 198% and the price of gold increased 5.63% over the same time frame in comparison.
Analysts are forecasting more upside for CMC too.
Commercial Metals’ earnings estimates for the fourth-quarter fiscal 2022 and for the current fiscal have undergone upward revisions lately. The company is poised to gain on robust steel demand, stemming from a growing downstream backlog and solid levels of new construction work entering the project pipeline. Healthy construction markets will support strong rebar and wire rods demand in North America. Steel sales volumes in Europe are anticipated to remain firm on increasing demand from the construction and industrial end market with robust manufacturing activity in Poland. These factors will boost steel shipment levels in North America and Europe and support the company’s results in fiscal 2022. It will benefit from the higher steel prices owing to an upsurge in demand in major end-use markets amid tight supply conditions.
Shares have gained 18.95% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Commercial Metals 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Commercial Metals (CMC - Free Report) ten years ago? It may not have been easy to hold on to CMC for all that time, but if you did, how much would your investment be worth today?
Commercial Metals' Business In-Depth
With that in mind, let's take a look at Commercial Metals' main business drivers.
Irving, TX- based Commercial Metals Company manufactures, recycles and markets steel and metal products, related materials and services. It provides these through a network of facilities that includes eight electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland.
During the second quarter of fiscal 2018, the company completed the exit of the International Marketing and Distribution segment. Commercial Metals announced that the company has realigned its reporting structure into two operating segments — North America and Europe — from the beginning of fourth-quarter fiscal 2020. North America includes the company's former Americas Recycling, Americas Mills and Americas Fabrication business segments. Europe comprises the company's former International Mill segment.
North America (87% of fiscal 2021 revenues) segment processes scrap metals for use as a raw material by manufacturers of new metal products. This segment operates 34 scrap metal processing facilities, with 14 locations in Texas, five locations in each of Florida and South Carolina, two locations in each of Georgia, Missouri, and North Carolina, and one location in each of Kansas, Louisiana, Oklahoma and Tennessee.
Americas Mills business includes three EAF mini mills, two EAF micro mills, a rerolling mill, two scrap metal shredders, eight scrap metal processing facilities that directly support the mills, and a railroad salvage operation, all of which are based in the United States. Americas Fabrication business consists of steel fabrication facilities that bend, weld, cut and fabricate steel, primarily rebar, and produce steel fence posts; warehouses that sell or rent products for the installation of concrete; and facilities that heat-treat steel to strengthen and provide flexibility.
Europe (13%) segment is comprised of mini mill, recycling and fabrication operations located in Poland.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Commercial Metals a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2012 would be worth $3,146.30, or a gain of 214.63%, as of August 8, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 198% and the price of gold increased 5.63% over the same time frame in comparison.
Analysts are forecasting more upside for CMC too.
Commercial Metals’ earnings estimates for the fourth-quarter fiscal 2022 and for the current fiscal have undergone upward revisions lately. The company is poised to gain on robust steel demand, stemming from a growing downstream backlog and solid levels of new construction work entering the project pipeline. Healthy construction markets will support strong rebar and wire rods demand in North America. Steel sales volumes in Europe are anticipated to remain firm on increasing demand from the construction and industrial end market with robust manufacturing activity in Poland. These factors will boost steel shipment levels in North America and Europe and support the company’s results in fiscal 2022. It will benefit from the higher steel prices owing to an upsurge in demand in major end-use markets amid tight supply conditions.
Shares have gained 18.95% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.