Commercial Metals Company (CMC) exhibits -30.0% gross margins and 1.5% return on invested capital within Materials (Steel/Iron Ore), balanced against a 18.4x enterprise multiple and 6.7% implied options volatility.
Sustained -30.0% gross profitability converts into 5.1% operating margin and 1.5% ROIC, outpacing sector cost of capital.
ROIC: 1.5% // GM: -30.0%YoY revenue trajectory of 0.0% paired with 4.32% free cash flow yield supports self-funded R&D and capital return.
REV YOY: 0.0% // FCF YLD: 4.32%Altman Z-Score of 2.40 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.40 // F-SCORE: 6/9Trading at 85.3x trailing P/E (79.3x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 85.3x // EV/EBITDA: 18.4xOptions market prices a ±6.7% implied move with a 0.62 put/call ratio around $64.00 max pain.
IMPL MOVE: ±6.7% // P/C: 0.62Elevated industry capital intensity and customer concentration in Steel/Iron Ore require continuous execution to defend 4.2% net margins.
NET MARGIN: 4.2% // D/E: 0.48x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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