CMC Metals EBITDA vs. Current Valuation

CMCXF Stock  USD 0.02  0.01  76.00%   
Based on CMC Metals' profitability indicators, CMC Metals may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess CMC Metals' ability to earn profits and add value for shareholders.
For CMC Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CMC Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CMC Metals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CMC Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CMC Metals over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between CMC Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if CMC Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CMC Metals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

CMC Metals Current Valuation vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CMC Metals's current stock value. Our valuation model uses many indicators to compare CMC Metals value to that of its competitors to determine the firm's financial worth.
CMC Metals is number one stock in ebitda category among its peers. It also is the top company in current valuation category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CMC Metals' earnings, one of the primary drivers of an investment's value.

CMC Current Valuation vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

CMC Metals

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(4.25 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

CMC Metals

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
18.71 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

CMC Current Valuation vs Competition

CMC Metals is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is currently estimated at about 14.21 Billion. CMC Metals adds roughly 18.71 Million in current valuation claiming only tiny portion of all equities under Materials industry.

CMC Metals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CMC Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CMC Metals will eventually generate negative long term returns. The profitability progress is the general direction of CMC Metals' change in net profit over the period of time. It can combine multiple indicators of CMC Metals, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
CMC Metals Ltd. engages in the acquisition and exploration of mineral properties in Canada and the United States. CMC Metals Ltd. was incorporated in 1996 and is headquartered in Vancouver, Canada. Cmc Metals operates under Other Precious Metals Mining classification in the United States and is traded on OTC Exchange.

CMC Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on CMC Metals. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CMC Metals position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CMC Metals' important profitability drivers and their relationship over time.

Use CMC Metals in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CMC Metals position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CMC Metals will appreciate offsetting losses from the drop in the long position's value.

CMC Metals Pair Trading

CMC Metals Pair Trading Analysis

The ability to find closely correlated positions to CMC Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CMC Metals when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CMC Metals - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CMC Metals to buy it.
The correlation of CMC Metals is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CMC Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CMC Metals moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CMC Metals can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Other Information on Investing in CMC OTC Stock

To fully project CMC Metals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CMC Metals at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CMC Metals' income statement, its balance sheet, and the statement of cash flows.
Potential CMC Metals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CMC Metals investors may work on each financial statement separately, they are all related. The changes in CMC Metals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CMC Metals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.