CMC
CyclicalsValuation Breakdown
Cyclical companies (chemicals, oil & gas, basic resources) have earnings that swing dramatically with commodity prices and economic cycles. Valuing them on a single year's earnings is misleading: they look cheap at peaks and expensive at troughs. This model uses 7-year median EBITDA ("mid-cycle" earnings) and a 7-year median EV/EBITDA multiple to estimate what the firm is worth at a normal point in the cycle.
Valuation Track Record
Retroactive intrinsic value vs actual close price — CMC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2018
The Beneish M-Score of -1.7358 is close to the manipulation threshold, indicating potential earnings manipulation. Additionally, the earnings quality score of 42.7 suggests significant weaknesses in revenue recognition and margin quality.
- Beneish M-Score of -1.7358 is near the manipulation threshold of -1.78, indicating potential earnings manipulation.
- Earnings Quality Score of 42.7/100 is low, particularly with an eq_margin score of 0.0/100, suggesting poor profitability management.
- DSRI of 0.2379 indicates good inventory management, as lower values suggest less risk of overproduction.
- Receivables quality score of 100.0/100 indicates effective management of receivables, reducing credit risk.
The concentrated ownership structure, with the top shareholder holding 31.3%, poses risks of potential conflicts of interest and governance issues, which may affect minority shareholders.
Investors should closely monitor CMC's financial disclosures for signs of earnings manipulation and consider a cautious approach given the elevated risk profile. Engaging with management regarding their revenue recognition practices could provide additional insights.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for CMC — hover nodes for intel, click to navigate