IRVING, Texas - Commercial Metals Company (NYSE: NYSE:CMC), a key player in manufacturing for the construction sector with annual revenue of $7.93 billion, announced a regular quarterly cash dividend of $0.18 per share on its common stock today. This marks the company's 241st consecutive quarterly dividend, currently yielding 1.45%. The dividend is set to be distributed on January 30, 2025, to shareholders on record as of January 16, 2025.
CMC operates a significant manufacturing network primarily in the United States and Central Europe, providing products and technologies essential for the reinforcement needs of the construction industry. The company's offerings are utilized in various construction applications, including infrastructure, non-residential, residential, industrial, and energy generation and transmission.
The declaration of the dividend reflects CMC's ongoing commitment to delivering value to its shareholders and its confidence in the company's financial stability. The consecutive nature of the dividend payments demonstrates a consistent return to investors, having maintained dividend payments for 54 consecutive years with increases in the past four years. According to InvestingPro analysis, the company's strong cash flows sufficiently cover interest payments, supporting its dividend sustainability.
Investors and market watchers often view regular and consistent dividend payments as an indicator of a company's financial health and its management's confidence in future earnings. CMC's financial strength is evident in its healthy current ratio of 3.94 and moderate debt levels. InvestingPro data reveals the company maintains a GREAT overall financial health score, with 12 additional exclusive insights available to subscribers through detailed Pro Research Reports.
It's important to note that this information is based on a press release statement from Commercial Metals Company. The company's stock performance and investors' responses to the dividend announcement will be observed as the payment date approaches. The stock currently trades at a P/E ratio of 11.89, with comprehensive valuation metrics available through InvestingPro's detailed analysis tools.
In other recent news, Commercial Metals Company (CMC) has reported a core EBITDA of $1 billion for fiscal 2024, a decrease from $1.4 billion in fiscal 2023. However, the company generated $900 million in cash flow from operations and returned $261.8 million to shareholders, a 48% increase from the previous fiscal year. On the financial front, CMC has extended the maturity of its $600 million revolving credit facility from 2027 to 2029, providing the company with continued financial flexibility.
Analyst firms have maintained their ratings on CMC shares, with KeyBanc Capital Markets retaining a Sector Weight rating, Morgan Stanley (NYSE:MS) sticking to an Equalweight rating, and BMO Capital keeping a Market Perform rating. These ratings come amidst the anticipation of CMC's first-quarter earnings report for 2025 and recent adjustments to earnings estimates.
In terms of project developments, CMC's Arizona 2 micro mill is projected to reach operational breakeven in Q1 2025, and the Steel West Virginia project is on track for commissioning in late 2025. Despite a projected decline in consolidated financial results for Q1 2025 due to temporary softness in the construction industry, CMC anticipates improved market conditions in the second half of fiscal 2025. The company plans to continue investing in its future with a projected capital expenditure of $630-$680 million for fiscal 2025. These are the recent developments in the company.
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