Commercial Metals Company (NYSE: CMC) has announced an increase of $500 million to its existing common stock repurchase program, bringing the aggregate capacity of the program to $850 million. The company has repurchased approximately $310 million of common stock since the program was authorized in October 2021.
Peter R. Matt, President and CEO, commented on the announcement, saying, "Today’s announcement reflects a well-balanced capital allocation strategy that is supported by CMC’s strong earnings capability and cash flow profile. Our company’s excellent financial position provides the ability to continue to fund value-accretive growth, while returning a meaningful portion of CMC’s free cash flow to shareholders."
CMC intends to repurchase shares from time to time for cash in open market transactions or in privately-negotiated transactions in accordance with applicable federal securities laws, including rule 10b5-1 programs.
The company's stock moved 1.9% as a result of this announcement and is now trading at a price of $50.3 per share.
The full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $4,644 | $5,829 | $5,476 | $6,730 | $8,913 | $8,800 |
| Revenue Growth | n/a | 25.52% | -6.05% | 22.88% | 32.45% | -1.28% |
| Net Margins | 3% | 3% | 5% | 6% | 14% | 11% |
| Net Income (MM) | $139 | $198 | $280 | $413 | $1,217 | $935 |
| Net Interest Expense (MM) | $41 | $71 | $62 | $52 | $51 | $40 |
| Depreciation & Amort. (MM) | $132 | $159 | $166 | $168 | $175 | $219 |
| Earnings Per Share | $1.17 | $1.66 | $2.32 | $3.38 | $9.95 | $7.34 |
| EPS Growth | n/a | 41.88% | 39.76% | 45.69% | 194.38% | -26.23% |
| Diluted Shares (MM) | 119 | 120 | 121 | 123 | 119 | 119 |
| Free Cash Flow (MM) | -$609 | -$102 | $604 | $44 | $250 | $737 |
| Capital Expenditures (MM) | $175 | $139 | $188 | $184 | $450 | $607 |
| Current Ratio | 2.68 | 3.35 | 3.54 | 3.12 | 2.99 | 3.73 |
| Total Debt (MM) | $1,328 | $1,193 | $1,083 | $1,036 | $1,482 | $1,155 |
Commercial Metals Company has growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display healthy debt levels and irregular cash flows. However, the firm has weak net margins with a positive growth rate.
