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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.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Commercial Metals ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2013 would be worth $3,256.76, or a 225.68% gain, as of January 9, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 165.61% and the price of gold increased 8.24% over the same time frame in comparison.
Analysts are forecasting more upside for CMC too.
Robust demand in North America for each of Commercial Metals’ major product lines is expected to reflect in the company’s results. Its North America contract backlog volumes and average pricing are at historically high levels. 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 as well as increased investment spending under the Infrastructure Investment and Jobs Act. Backed by its strategic initiatives, including the acquisition of Tensar, the construction of Arizona 2 micro mill, and the fourth micro mill that will serve the Eastern United States, the company is well-positioned to capitalize on this demand. Reflecting these tailwinds, the earnings estimates for fiscal 2023 have undergone positive revisions lately.
The stock is up 5.50% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. 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.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Commercial Metals ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2013 would be worth $3,256.76, or a 225.68% gain, as of January 9, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 165.61% and the price of gold increased 8.24% over the same time frame in comparison.
Analysts are forecasting more upside for CMC too.
Robust demand in North America for each of Commercial Metals’ major product lines is expected to reflect in the company’s results. Its North America contract backlog volumes and average pricing are at historically high levels. 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 as well as increased investment spending under the Infrastructure Investment and Jobs Act. Backed by its strategic initiatives, including the acquisition of Tensar, the construction of Arizona 2 micro mill, and the fourth micro mill that will serve the Eastern United States, the company is well-positioned to capitalize on this demand. Reflecting these tailwinds, the earnings estimates for fiscal 2023 have undergone positive revisions lately.
The stock is up 5.50% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.