CMC Corporation
CMC Corporation Fundamental Analysis
CMC Corporation (2185.T) shows moderate financial fundamentals with a PE ratio of 10.28, profit margin of 12.38%, and ROE of 11.18%. The company generates $19.1B in annual revenue with weak year-over-year growth of -6.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 2185.T's fundamental strength across five key dimensions:
Efficiency Score
Weak2185.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent2185.T trades at attractive valuation levels.
Growth Score
Weak2185.T faces weak or negative growth trends.
Financial Health Score
Excellent2185.T maintains a strong and stable balance sheet.
Profitability Score
Weak2185.T struggles to sustain strong margins.
Key Financial Metrics
Is 2185.T Expensive or Cheap?
P/E Ratio
2185.T trades at 10.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2185.T's PEG of 0.97 indicates potential undervaluation.
Price to Book
The market values CMC Corporation at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.09 times EBITDA. This signals the market has high growth expectations.
How Well Does 2185.T Make Money?
Net Profit Margin
For every $100 in sales, CMC Corporation keeps $12.38 as profit after all expenses.
Operating Margin
Core operations generate 16.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.18 in profit for every $100 of shareholder equity.
ROA
CMC Corporation generates $8.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CMC Corporation produces operating cash flow of $2.31B, showing steady but balanced cash generation.
Free Cash Flow
CMC Corporation produces free cash flow of $1.78B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $137.69 in free cash annually.
FCF Yield
2185.T converts 7.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1076.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 2185.T Stacks Against Its Sector Peers
| Metric | 2185.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.28 | 34.43 | Better (Cheaper) |
| ROE | 11.18% | 1135.00% | Weak |
| Net Margin | 12.38% | -134663.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 1076.02 | 5.77 | Strong Liquidity |
| ROA | 8.76% | -310462.00% (disorted) | Weak |
2185.T outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CMC Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.45%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
69.84%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
84.82%
Industry Style: Growth, Innovation, High Beta
High Growth