Commercial Metals Company (NYSE: CMC)

The American steel industry has had its ups and downs over the years, but there’s a new player in town that’s making waves: Commercial Metals Company (CMC). CMC is helping to fuel America’s return to the steel industry, and it’s doing it in a big way.

CMC is one of the most important and influential companies in the world today. While its products might not grab headlines like the latest smart  phone or app, the global economy simply can’t function without the high-quality steel it produces. From infrastructure to residential and non-residential buildings, to agricultural applications, CMC is a major player in a wide range of industries.

With operations in both the United States and Europe, CMC is the No. 1 market position holder for nearly every product it manufactures. The company also has recycling and fabrication plants in numerous US states, making it one of the greenest steel companies in the world in terms of greenhouse gas emissions, energy intensity, and water withdrawal. In fact, 98% of the materials used in its steelmaking are recycled.

The company’s success is reflected in its impressive financials. For the first quarter of fiscal 2023, CMC brought in $2.2 billion in revenue, up 12% over revenue in the first quarter of fiscal 2022. Both revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) are growing at a compound annual growth rate of 7%, and adjusted EBITDA margins were about 25%in the quarter. For the whole of its fiscal 2022, the company brought in $8.9billion, up 32.4% compared with 2021, and net earnings more than doubled.

As the US government looks to rebuild the country’s infrastructure with a proposed   $1.2 trillion bipartisan infrastructure deal, CMC is perfectly positioned to benefit from increased demand for steel. Also, with 80% of its finished steel shipments in markets where it has the No. 1 position, and 95% of its finished steel shipments in markets where the company has the No. 1 or No. 2 position, CMC is a clear leader in the industry.

Overall, CMC is a great American success story, and it’s helping to put the US steel industry back on the map. With its focus on quality, sustainability, and innovation, there’s no telling what CMC will achieve in the years to come.

Now is the time to invest in America’s new steel belt.

Action to Take: Buy Commercial Metals Company (NYSE: CMC) at market.

Best regards

Stuart