Morningstar Rating

Stock Research and Analysis

by Andrew Lane

Bulls Say

The U.S. Sunbelt, which reflects CMC's geographic footprint, should enjoy a higher level of nonresidential construction activity than other U.S. regions in the years to come.
The company has been a rumored takeover target for years. An M&A revival may prompt potential strategic acquirers to take a fresh look.
The company's vertically integrated business model allows for ferrous scrap procurement efficiencies. Read more 

Bears Say

The company's narrow scope of product offerings leaves it highly leveraged to the recovery of the nonresidential construction markets in the U.S.
The firm's global conglomerate structure might prove difficult to manage for a company of its size.
High U.S. steel import volumes will suppress shipment volume growth and margin expansion for CMC in its home market. Read more 

Management

Joe Alvarado took over as CMC’s CEO in September 2011 following the exit of Murray McClean, a CMC veteran who had managed the company’s international division before taking the helm as CEO in 2006. Alvarado has a wealth of experience working in the   Read more 

Profile

CMC operates steel minimills, steel fabrication plants, and metal recycling facilities in the United States and Poland. CMC mainly manufactures rebar and structural steel,  Read more 

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