When it comes to choosing between Commercial Metals and Schnitzer Steel Industries, the devil is in the details. Commercial Metals, a key player in the Basic Materials sector, showcases a robust financial profile with a revenue of $7.9 billion and a gross profit of $1.8 billion. Despite a slight dip in quarterly revenue growth at 10%, the company maintains a healthy operating margin of 7.81% and a profit margin of 6.13%. Its earnings per share stand at 4.14, supported by a PE ratio of 11.81, suggesting a reasonable valuation. With cash and short-term investments totaling $857.9 million, Commercial Metals is well-positioned to weather economic fluctuations. While its dividend yield is modest at 1.47%, the payout ratio of 25% indicates a balanced approach to rewarding shareholders while reinvesting in growth. The stock's analyst consensus leans towards a buy, with a Wall Street target price of $62, hinting at potential upside. In contrast, Schnitzer Steel's financial metrics may not paint as dynamic a picture, making Commercial Metals a compelling choice for investors seeking stability with room for growth. Today, we might witness evidence that Schnitzer Steel is recovering more slowly from its recent dip, with its shares rising just 0.96% compared to Commercial Metals' 3.11% increase. While many cautious investors are steering clear of the metals and mining sector, it's worth taking a closer look at Commercial Metals to see how it measures up against Schnitzer Steel and similar companies. Let's explore some of the competitive factors that differentiate Commercial Metals from Schnitzer.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Commercial or SCHNITZER is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Commercial Metals dividends
A dividend is the distribution of a portion of Commercial Metals earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Commercial Metals dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Commercial one year expected dividend income is about USD0.5 per share.
At present, Commercial Metals'
Dividend Payout Ratio is projected to slightly decrease based on the last few years of reporting. The current year's
Dividend Paid And Capex Coverage Ratio is expected to grow to 2.11, whereas
Dividends Paid is projected to grow to (86.2
M).
Investing in dividend-paying stocks, such as Commercial Metals is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Commercial Metals must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Commercial Metals. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Commercial Metals's Liquidity
Commercial Metals
financial leverage refers to using borrowed capital as a funding source to finance Commercial Metals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Commercial Metals financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Commercial Metals' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Commercial Metals' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Commercial Metals's total debt and its cash.
Correlation Between Commercial and SCHNITZER STEEL INDU
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Commercial Metals together with similar or unrelated positions with a negative correlation. For example, you can also add SCHNITZER STEEL to your portfolio. If SCHNITZER STEEL is not perfectly correlated to Commercial Metals it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Commercial Metals, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Commercial Metals and SCHNITZER STEEL in your portfolio? Please note if you are using this as a pair-trade strategy between Commercial Metals and SCHNITZER STEEL, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between CMC and SCHN for more information.
Breaking it down
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Commercial Metals revenue. Based on the latest financial disclosure, Commercial Metals reported 7.93
B of revenue.
This indicator is about the same for the Metals & Mining average (which is currently at 7.86
B) sector and 36.58% lower than that of the
Materials industry. The revenue for all United States stocks is 15.99% higher than that of Commercial Metals. As for SCHNITZER STEEL we see revenue of 3.49
B, which is 72.11% lower than that of the Materials
| Commercial | 7.93 Billion |
| Sector | 7.86 Billion |
| SCHNITZER | 3.49 Billion |
In investing, change is the only constant, and when comparing Commercial Metals Company (CMC) to Schnitzer Steel Industries, this adage holds true. Commercial Metals, with its market capitalization of $5.57 billion, presents a compelling case with its strong operating margin of 0.08% and a robust current ratio of 2.54X, indicating solid financial health and liquidity. The company's earnings per share of 4.14 and a price-to-earnings ratio of 22.20X suggest it is positioned for potential growth, especially when considering its disciplined payout ratio of 0.25. While Schnitzer Steel may offer its own set of advantages, Commercial Metals' dynamic performance metrics make it a noteworthy contender for investors seeking stability and potential upside in the metals and mining sector..
Commercial Metals implied volatility may change after the surge
Commercial Metals has recently seen a rise in its stock price, but with its Jensen's alpha at -0.15, there's a signal that it has underperformed against its benchmark. This underperformance might lead to shifts in market expectations and affect the stock's implied volatility, which is crucial for option pricing and trading strategies. The stock shows low volatility, with a skewness of 2.27 and kurtosis of 11.97. Monitoring these volatility trends can help investors make informed decisions, particularly in timing their market entries and exits.
During bear markets, increased volatility can significantly affect Commercial Metals' stock value, often prompting investors to adjust their portfolios by acquiring different assets as prices drop.Considering Commercial Metals' recent rise of over 3%, potential investors might wonder if this momentum is sustainable. With an analyst target price estimated at 62, there's room for optimism, especially when the stock's real value is pegged at 52.5. However, it's important to weigh this against the analyst consensus, which leans towards a "Buy" with a mix of strong buys and holds. While the market value stands at
50.41, slightly below the real value, this could indicate an opportunity for growth. As always, it's crucial to stay informed and consider both the potential rewards and risks before making any investment decisions..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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