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If You Invested $1000 in Commercial Metals a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and 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 seven 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.
Commercial Metals realigned its reporting structure into two operating segments — North America and Europe — from the beginning of fourth-quarter fiscal 2020.
North America (generated 82% of fiscal 2022 revenues) segment processes scrap metals for use as a raw material by manufacturers of new metal products. This segment operates 38 scrap metal processing facilities, primarily located in the Southeast and Central United States.
The steel mill operations include six EAF mini mills, two EAF micro mills, and one rerolling mill. The fabrication operations include 56 facilities engaged in various aspects of steel fabrication. Most of these facilities engage in the general fabrication of reinforcing steel.
The steel mills manufacture finished long steel products including rebar, merchant bar, light structural and other special sections and wire rod, as well as semi-finished billets for rerolling and forging applications (collectively referred to as steel products).
Each EAF mini mill consists of a melt shop with an electric arc furnace, continuous casting equipment that shapes molten metal into billets, a reheating furnace that prepares billets for rolling and a rolling line that forms products from heated billets. It also includes a mechanical cooling bed that receives hot products from the rolling line, finishing facilities that shear, straighten, bundle and prepare products for shipping; and supporting facilities such as maintenance, warehouse and office areas.
The Europe (generated 18% of fiscal 2022 revenues) segment is comprised of mini mill, recycling and fabrication operations located in Poland. Its 12 scrap metal recycling facilities, located throughout Poland, process ferrous scrap metals for use as raw material for the mini mill.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Commercial Metals ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $3,262.83, or a 226.28% gain, as of June 15, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 168.80% and gold's return of 34.37% over the same time frame.
Looking ahead, analysts are expecting more upside for CMC.
Robust demand in North America for each of Commercial Metals’ major product lines is expected to reflect in its results. Downstream bidding activity remains strong, indicating a strong pipeline of projects entering the market. Steel demand is expected to pick up, aided by the automotive sector and increased investment spending under the Infrastructure Investment and Jobs Act. However, market volatility and weather-related shipment interruptions are denting margins. Associated costs with a major planned outage, are expected to affect results. Nevertheless, backed by its strategic initiatives, the company is well-positioned to capitalize on this demand. The company expects a sequential improvement in core EBITDA in the upcoming quarter. Reflecting these tailwinds, earnings estimates for fiscal 2023 have undergone positive revisions lately.
The stock is up 5.68% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.
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If You Invested $1000 in Commercial Metals a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and 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 seven 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.
Commercial Metals realigned its reporting structure into two operating segments — North America and Europe — from the beginning of fourth-quarter fiscal 2020.
North America (generated 82% of fiscal 2022 revenues) segment processes scrap metals for use as a raw material by manufacturers of new metal products. This segment operates 38 scrap metal processing facilities, primarily located in the Southeast and Central United States.
The steel mill operations include six EAF mini mills, two EAF micro mills, and one rerolling mill. The fabrication operations include 56 facilities engaged in various aspects of steel fabrication. Most of these facilities engage in the general fabrication of reinforcing steel.
The steel mills manufacture finished long steel products including rebar, merchant bar, light structural and other special sections and wire rod, as well as semi-finished billets for rerolling and forging applications (collectively referred to as steel products).
Each EAF mini mill consists of a melt shop with an electric arc furnace, continuous casting equipment that shapes molten metal into billets, a reheating furnace that prepares billets for rolling and a rolling line that forms products from heated billets. It also includes a mechanical cooling bed that receives hot products from the rolling line, finishing facilities that shear, straighten, bundle and prepare products for shipping; and supporting facilities such as maintenance, warehouse and office areas.
The Europe (generated 18% of fiscal 2022 revenues) segment is comprised of mini mill, recycling and fabrication operations located in Poland. Its 12 scrap metal recycling facilities, located throughout Poland, process ferrous scrap metals for use as raw material for the mini mill.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Commercial Metals ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $3,262.83, or a 226.28% gain, as of June 15, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 168.80% and gold's return of 34.37% over the same time frame.
Looking ahead, analysts are expecting more upside for CMC.
Robust demand in North America for each of Commercial Metals’ major product lines is expected to reflect in its results. Downstream bidding activity remains strong, indicating a strong pipeline of projects entering the market. Steel demand is expected to pick up, aided by the automotive sector and increased investment spending under the Infrastructure Investment and Jobs Act. However, market volatility and weather-related shipment interruptions are denting margins. Associated costs with a major planned outage, are expected to affect results. Nevertheless, backed by its strategic initiatives, the company is well-positioned to capitalize on this demand. The company expects a sequential improvement in core EBITDA in the upcoming quarter. Reflecting these tailwinds, earnings estimates for fiscal 2023 have undergone positive revisions lately.
The stock is up 5.68% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.