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CMC Stock Soars to All-Time High, Reaching $63.42

Published 03/12/2024, 04:24 am
CMC
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Commercial Metals Company (NYSE:CMC) stock has reached an unprecedented peak, setting an all-time high at $63.42. This milestone underscores a period of robust performance for the company, reflecting a significant 1-year change with an impressive 36.44% increase. With a market capitalization of $7.2 billion, CMC maintains a GREAT financial health score according to InvestingPro analysis, supported by its impressive 54-year track record of consistent dividend payments and an attractive 8% free cash flow yield. Investors have shown increased confidence in CMC's market position and growth prospects, propelling the stock to new heights. The company's strategic initiatives and strong demand for its products have contributed to this remarkable ascent, marking a notable achievement in its financial history. According to InvestingPro analysis, the stock appears slightly overvalued at current levels, though investors can access 14 additional exclusive ProTips and a comprehensive Pro Research Report for deeper insights into CMC's valuation and growth potential.

In other recent news, Commercial Metals Co announced the extension of its revolving credit facility's maturity date to October 2029, providing the company with continued financial flexibility. The company also posted its fourth quarter and full-year 2024 results, which were in line with expectations. Despite a projected softer earnings performance in the upcoming quarters, BMO Capital maintains a Market Perform rating on Commercial Metals.

Commercial Metals' fiscal 2024 was marked by a core EBITDA of $1 billion, down from $1.4 billion in fiscal 2023 but still 40% above pre-pandemic levels. The company generated $900 million in cash flow from operations and returned $261.8 million to shareholders, a 48% increase from the previous fiscal year.

In terms of project developments, the Arizona 2 micro mill is expected to reach operational breakeven in Q1 2025 and the Steel West Virginia project is on track for commissioning in late 2025. Despite a projected decline in consolidated financial results for Q1 2025 due to temporary softness in the construction industry, Commercial Metals anticipates improved market conditions in the second half of fiscal 2025, supported by a solid pipeline of construction projects driven by infrastructure investment.

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