Highlights

  • Commercial Metals shows 691.89% basic EPS growth, a P/E of 10.71 and PEG of -1.44.
  • Fiscal 2026 net earnings were $655,849 thousand, against $84,662 thousand in fiscal 2025.
  • Net cash flows from operating activities were $1,058,963 thousand, against $715,070 thousand.
  • The Board added $600.0 million to buybacks; $702.1 million remained at August 31, 2026.

Commercial Metals (NYSE:CMC) shares were trading at USD 63.51 on October 28, 2026, up 0.16%, alongside one-year basic EPS growth of 691.89%, a trailing twelve-month P/E of 10.71 and an expected-basis PEG of -1.44, the three figures behind its place among undervalued growth stocks. In its latest disclosures, the steel and construction solutions group completed the CP&P and Foley precast acquisitions in December 2025, raised its share repurchase authorization by $600.0 million in August 2026, and reported fiscal 2026 net earnings of $655.8 million in its annual report filed in October.

Based in Irving, Texas, and incorporated in Delaware, Commercial Metals was founded in 1915 as a single scrap yard in Dallas, Texas. It describes itself as a provider of early-stage construction solutions, with manufacturing primarily in the United States and Central Europe. It reports through three segments: North America Steel Group, Construction Solutions Group and Europe Steel Group. The company had approximately 13,670 employees at August 31, 2026, and its fiscal year ends August 31.

Growth: Fiscal 2026 Earnings, Metal Margins and Precast Sales

Net earnings were $655,849 thousand in fiscal 2026 against $84,662 thousand in fiscal 2025. Basic earnings per share were $5.92 against $0.75, and diluted earnings per share were $5.86 against $0.74. Net sales were $9,393,904 thousand against $7,798,480 thousand, up 20%, with the newly acquired precast platform contributing $511.1 million of net sales to external customers.

The company said the increase in net earnings reflected, in part, a litigation-related expense of approximately $274 million, net of tax, recognized in fiscal 2025, together with wider steel products metal margins and the precast platform, partially offset by lower government assistance in Europe and higher SG&A and interest expense.

North America Steel Group adjusted EBITDA was $1,134,540 thousand against $742,485 thousand, up 53%. The steel products metal margin was $627 per ton against $509. Construction Solutions Group adjusted EBITDA was $292,137 thousand against $137,721 thousand.

Valuation: P/E of 10.71, PEG of -1.44 and Cash Generation

The P/E ratio of 10.71 is measured on trailing twelve-month earnings, and the PEG ratio of -1.44 on expected growth. Stockholders' equity was $4,696,932 thousand at August 31, 2026, against $4,193,066 thousand a year earlier. The effective income tax rate was 7.8% against 21.3%.

On the fiscal 2026 fourth quarter call, management said the value it sees in the current share price strengthened its conviction in the repurchase program and that it intends to accelerate its pace of activity under it.

Capital Returns, Acquisition Financing and Liquidity

Commercial Metals repurchased $102.8 million of common stock in fiscal 2026 against $198.8 million. The Board increased the program by $600.0 million in August 2026, leaving $702.1 million of authorization at August 31, 2026. On October 13, 2026 the Board declared its 248th consecutive quarterly dividend of $0.20 per share, payable November 11, 2026.

The Foley and CP&P acquisitions had net cash outflows of $2.52 billion. In November 2025 the company issued $1.0 billion of 5.750% senior unsecured notes due November 2033 and $1.0 billion of 6.000% senior unsecured notes due December 2035. Long-term debt was $3,313,728 thousand. Cash and cash equivalents were $775,676 thousand, and the $1.0 billion revolving credit facility had $999,017 thousand available.

Disclosed Risks: PSG Litigation, Europe and Costs, and Fiscal 2027 Outlook

In the PSG antitrust case, a jury returned a verdict of $110.0 million in November 2024, which the court trebled as a matter of law, and PSG may also recover attorneys' fees, costs and interest. The court denied the post-trial motion on September 29, 2025, and the company intends to pursue an appeal. It recorded $362.3 million of litigation expense in fiscal 2025 and $15.4 million in fiscal 2026, classified as current liabilities. The company stated that, unless the judgment is overturned or significantly reduced, the cash payments could affect its liquidity materially. A second PSG suit seeks compensatory damages of approximately $29 million; the company has recorded no liability.

Europe Steel Group adjusted EBITDA was $59,752 thousand against $69,282 thousand, down 14%. SG&A expenses rose $181.7 million, or 26%, and interest expense rose $97.8 million. The company also cited possible renewed steel imports if Section 232 tariffs are relaxed.

The company estimates fiscal 2027 capital spending at approximately $400 million. It expects West Virginia micro mill sales to begin in the first quarter of fiscal 2027. On the call, management said it expects the first quarter North America Steel Group adjusted EBITDA to be nearly flat with the fourth quarter, Construction Solutions Group adjusted EBITDA to fall sequentially on seasonal trends, and an effective tax rate of approximately 24% for fiscal 2027.