Commercial Metals CoFRA:CMS +0.81%81 Gross Margin % is 18.33% as of May. 2026, which is 13% above its 10-year median of 16.20. GuruFocus rates FRA:CMS with a GF Score™ of 81/100 and a GF Value™ of €50.04 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 3,003 Industrial Products companies, Commercial Metals Co ranks worse than 73.99% on this metric.
Commercial Metals Co gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for Commercial Metals Co's Gross Margin % or its related term are showing as below:
FRA:CMS'
s Gross Margin % Range Over the Past 10 Years
Min: 13.4 Med: 16.2 Max: 20.83
Current: 17.74
During the past 13 years, the highestGross Margin % of Commercial Metals Co was 20.83%. The lowest was 13.40%. And the median was 16.20%.
FRA:CMS's Gross Margin % is ranked worse than 73.99% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs FRA:CMS: 17.74
Commercial Metals Co had a gross margin of 18.33% for the quarter that ended in May. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Commercial Metals Co was -1.10% per year.
Commercial Metals Co (FRA:CMS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Commercial Metals Co had a gross margin of 18.33% for the quarter that ended in May. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Commercial Metals Co Gross Margin % Related Terms
Commercial Metals Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Commercial Metals Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:CMS vs ESAB, GPGI, WOR: Gross Margin % Comparison
For the Metal Fabrication subindustry, Commercial Metals Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Commercial Metals Co Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Commercial Metals Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Commercial Metals Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Commercial Metals Co (FRA:CMS) has a Gross Margin % of 18.33% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Commercial Metals Co and its competitors. This is 13% above median its historical median of 16.20. Over the past decade, Commercial Metals Co's Gross Margin % has ranged from 13.40 to 20.83. According to the industry distribution chart, Commercial Metals Co ranks #2222 out of 3003 companies in the Industrial Products industry, placing it in the top 74%.
Is Commercial Metals Co's Gross Margin % too high?
Commercial Metals Co's current Gross Margin % of 18.33% is 13% above median its 10-year median of 16.20. Over the past 10 years, this metric has ranged from a low of 13.40 to a high of 20.83. The Industrial Products industry median Gross Margin % is 26.79. Commercial Metals Co's value of 18.33% is 31.6% below this industry median. Based on the distribution chart, Commercial Metals Co ranks #2222 out of 3003 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Commercial Metals Co has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Commercial Metals Co's Gross Margin % compare to ESAB and GPGI?
According to the Industrial Products industry distribution chart, Commercial Metals Co ranks #2222 out of 3003 companies for Gross Margin %. This places Commercial Metals Co in the lower half of its industry. The industry median Gross Margin % is 26.79. Commercial Metals Co's value of 18.33% is 31.6% below this benchmark. Historically, Commercial Metals Co's own Gross Margin % has ranged from 13.40 to 20.83 over the past decade. While the company's 10-year median is 16.20 vs. the industry median of 26.79, Commercial Metals Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Commercial Metals Co's current Gross Margin % of 18.33% is 31.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Commercial Metals Co and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Commercial Metals Co's current Gross Margin % is 18.33%, which is 13% above median its own 10-year median of 16.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Commercial Metals Co stock overvalued right now?
Based on GuruFocus' analysis, Commercial Metals Co (FRA:CMS) is currently considered Modestly Overvalued. The stock's GF Value™ is €50.04, compared to a current price of €62.50 — trading 24.9% above its estimated fair value. The current Gross Margin % is 18.33%, which is 13% above median its 10-year median of 16.20 and 31.6% below the Industrial Products industry median of 26.79. Commercial Metals Co's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Commercial Metals Co (FRA:CMS), the current Gross Margin % is 18.33% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Commercial Metals Co (FRA:CMS) Overvalued in 2026?
Based on GuruFocus' analysis, Commercial Metals Co stock appears to be overvalued.
The current stock price of €62.50 is trading 24.9% above its estimated GF Value™ of €50.04.
GuruFocus considers Commercial Metals Co to be Modestly Overvalued.
Key valuation signals for FRA:CMS:
Gross Margin %: 18.33% (13% above median its 10-year median of 16.20)
GF Value™: €50.04 vs. price of €62.50 (24.9% above fair value)
Industry Position: 31.6% below the Industrial Products median (#2222 of 3003)
No single metric tells the full story. See the FRA:CMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Commercial Metals Co is a manufacturer and supplier of early-stage construction materials, including steel reinforcing bars, concrete pipes, precast products, and soil stabilization solutions. It also produces merchant bar, steel fence posts, and wire rod, serving domestic and some international markets in Europe and Asia. Its products are used in infrastructure and building projects such as highways, bridges, airports, and commercial and residential buildings.
81GF Score
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