The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
COMMERCIAL METALS COMPANY (CMC) is a mid-cap value stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Commercial Metals Company, recycles and markets steel and metal products, related materials and services. The Company operates through four segments: Americas Recycling, Americas Mills, Americas Fabrication, and International Mill. Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. Americas Mills segment includes its three EAF mini mills, two EAF micro mills, a rerolling mill, two scrap metal shredders, eight scrap metal processing facilities that directly support the mills, and a railroad salvage operation, all of which are based in the U.S. Americas Fabrication segment consists of its steel fabrication facilities that bend, weld, cut and fabricate steel, primarily rebar, and produce steel fence posts. The International Mill segment is comprised of its mini mill, recycling and fabrication operations located in Poland. The Company also owns and manufactures GalvaBar, which is a continuous galvanized rebar (CGR).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
|LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:||PASS|
|LONG-TERM EPS GROWTH:||PASS|
Detailed Analysis of COMMERCIAL METALS COMPANY
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
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