In our last Number Cruncher we discussed how Commercial Metals Co. (CMC), AutoNation Inc. (AN) and Celanese Corp. (CE) are mid-caps with robust profitability and a cheap valuation.
Starting off with CMC
In the past 90 days, CMC’s SP score has decreased by 2, bringing it down to 71. The SP score is derived from the Performance (86.7) and Risk (34.6) scores. The company has multiple impressive factor scores but is most biased towards Value, with a score of 82. CMC experienced an incredible year, seeing a 1-year growth of 475% in Performance Spread. Moreover, in the last year, the company’s Earnings Per Share growth has more than doubled its 5-year average.
We can see that the company has been seeing a steady incline in its EVA and NOPAT for the last 5 years and this this growth has recently accelerated. Specifically, CMC’s EVA has grown faster than the Net Operating Profit in the last 3 years. This indicates that the company is creating value for its shareholders rather than simply inflating their numbers.
Continuing with AN
AN currently has an acceptable SP score of 63, having decreased by 1 over the past 90 days. The SP score is determined by their impressive Performance (78.2) score and their slightly worrying Risk (40.7) score. AN has a bias tilt towards the Value, Growth, and Quality factors, with scores of 77, 74 and 73 respectively.
The company is second best of its peers in terms of Economic Performance Index with a value of 3.7. This metric measures the amount of value created by the company. Contrastingly, AN has the highest risk associated with FGV of its peers. This could point towards the stock being underpriced by the market, making this possibly an attractive point of entry.
Lastly, let’s look at CE
Celanese Corp.’s current SP score is 66, which has decreased by 15 over the past 90 days. The company’s SP score is determined through their promising Performance (83.4) score and unsatisfactory Risk (38.9) score. The company has a factor tilt towards Value with a respectable score of 74. CE saw a decrease in Earnings Per Share of 38.5% from last year, down from their 5-year growth average of 77.2%.
According to our system, CE is currently trading at a discount. This can also be concluded through our Market Value added metric which shows that the market’s expectations for the company are currently low. Historical pricing suggests that CE’s stock may be undervalued at the moment.
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