Commercial Metals Profit Margin vs. Cash And Equivalents
| CMC Stock | USD 50.27 0.74 1.49% |
For Commercial Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Commercial Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Commercial Metals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Commercial Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Commercial Metals over time as well as its relative position and ranking within its peers.
Commercial |
Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Commercial Metals. If investors know Commercial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Commercial Metals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Commercial Metals is measured differently than its book value, which is the value of Commercial that is recorded on the company's balance sheet. Investors also form their own opinion of Commercial Metals' value that differs from its market value or its book value, called intrinsic value, which is Commercial Metals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Commercial Metals' market value can be influenced by many factors that don't directly affect Commercial Metals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Commercial Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Commercial Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Commercial 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.
Commercial Metals Cash And Equivalents vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Commercial Metals's current stock value. Our valuation model uses many indicators to compare Commercial Metals value to that of its competitors to determine the firm's financial worth. Commercial Metals is rated below average in profit margin category among its peers. It is rated below average in cash and equivalents category among its peers creating about 9,662,838,499 of Cash And Equivalents per Profit Margin. 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 Commercial Metals' earnings, one of the primary drivers of an investment's value.Commercial Cash And Equivalents vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Commercial Metals |
| = | 0.06 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Commercial Metals |
| = | 592.33 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Commercial Cash And Equivalents Comparison
Commercial Metals is currently under evaluation in cash and equivalents category among its peers.
Commercial Metals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Commercial Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Commercial Metals will eventually generate negative long term returns. The profitability progress is the general direction of Commercial Metals' change in net profit over the period of time. It can combine multiple indicators of Commercial 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.
Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. The company was founded in 1915 and is headquartered in Irving, Texas. Commercial Metals operates under Steel classification in the United States and is traded on New York Stock Exchange. It employs 12483 people.
Commercial Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Commercial 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 Commercial 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 Commercial Metals' important profitability drivers and their relationship over time.
Use Commercial 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 Commercial 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 Commercial Metals will appreciate offsetting losses from the drop in the long position's value.Commercial Metals Pair Trading
Commercial Metals Pair Trading Analysis
The ability to find closely correlated positions to Commercial 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 Commercial 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 Commercial 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 Commercial Metals to buy it.
The correlation of Commercial 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 Commercial Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Commercial 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 Commercial 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.Use Investing Themes to Complement your Commercial Metals position
In addition to having Commercial Metals in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. For information on how to trade Commercial Stock refer to our How to Trade Commercial Stock guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Commercial Metals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Commercial 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 Commercial Metals' income statement, its balance sheet, and the statement of cash flows.