Commercial Metals CoFRA:CMS -3.70%85 Return-on-Tangible-Asset is 9.85% as of May. 2026, which is 52% above its 10-year median of 6.50. GuruFocus rates FRA:CMS with a GF Score™ of 85/100 and a GF Value™ of €51.78. The stock has 7 warning signs investors should review. Among 3,077 Industrial Products companies, Commercial Metals Co ranks better than 79.72% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Commercial Metals Co's annualizedNet Income for the quarter that ended in May. 2026 was €592 Mil. Commercial Metals Co's average total tangible assets for the quarter that ended in May. 2026 was €6,012 Mil. Therefore, Commercial Metals Co's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 9.85%.
The historical rank and industry rank for Commercial Metals Co's Return-on-Tangible-Asset or its related term are showing as below:
FRA:CMS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.33 Med: 6.5 Max: 23.65
Current: 8.32
During the past 13 years, Commercial Metals Co's highest Return-on-Tangible-Asset was 23.65%. The lowest was 1.33%. And the median was 6.50%.
FRA:CMS's Return-on-Tangible-Asset is ranked better than 79.72% of 3077
companies
in the Industrial Products industry
Industry Median: 3.24
vs FRA:CMS: 8.32
Commercial Metals Co (FRA:CMS) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Commercial Metals Co Return-on-Tangible-Asset Related Terms
Commercial Metals Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Commercial Metals Co's Return-on-Tangible-Asset 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.
Commercial Metals Co Return-on-Tangible-Asset Chart
FRA:CMS vs ESAB, GPGI, WOR: Return-on-Tangible-Asset Comparison
For the Metal Fabrication subindustry, Commercial Metals Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Commercial Metals Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Commercial Metals Co's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 9.85% mean?
Commercial Metals Co (FRA:CMS) has a Return-on-Tangible-Asset of 9.85% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Commercial Metals Co and its competitors. This is 52% above median its historical median of 6.50. Over the past decade, Commercial Metals Co's Return-on-Tangible-Asset has ranged from 1.33 to 23.65. According to the industry distribution chart, Commercial Metals Co ranks #624 out of 3077 companies in the Industrial Products industry, placing it in the top 20.3%.
Is Commercial Metals Co's Return-on-Tangible-Asset too high?
Commercial Metals Co's current Return-on-Tangible-Asset of 9.85% is 52% above median its 10-year median of 6.50. Over the past 10 years, this metric has ranged from a low of 1.33 to a high of 23.65. The Industrial Products industry median Return-on-Tangible-Asset is 3.24. Commercial Metals Co's value of 9.85% is 204% above this industry median. Based on the distribution chart, Commercial Metals Co ranks #624 out of 3077 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Commercial Metals Co has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Commercial Metals Co's Return-on-Tangible-Asset compare to ESAB and GPGI?
According to the Industrial Products industry distribution chart, Commercial Metals Co ranks #624 out of 3077 companies for Return-on-Tangible-Asset. This places Commercial Metals Co in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.24. Commercial Metals Co's value of 9.85% is 204% above this benchmark. Historically, Commercial Metals Co's own Return-on-Tangible-Asset has ranged from 1.33 to 23.65 over the past decade. While the company's 10-year median is 6.50 vs. the industry median of 3.24, Commercial Metals Co has consistently been above 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 Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.24, based on 3,077 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Commercial Metals Co's current Return-on-Tangible-Asset of 9.85% is 204% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Commercial Metals Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Commercial Metals Co's current Return-on-Tangible-Asset is 9.85%, which is 52% above median its own 10-year median of 6.50. 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?
Commercial Metals Co (FRA:CMS) has a current Return-on-Tangible-Asset of 9.85%. The stock's GF Value™ is €51.78, compared to a current price of €52.00 — trading 0.4% above its estimated fair value. The current Return-on-Tangible-Asset is 9.85%, which is 52% above median its 10-year median of 6.50 and 204% above the Industrial Products industry median of 3.24. Commercial Metals Co's overall GF Score™ is 85/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Commercial Metals Co (FRA:CMS), the current Return-on-Tangible-Asset is 9.85% 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 €52.00 is trading 0.4% above its estimated GF Value™ of €51.78.
Key valuation signals for FRA:CMS:
Return-on-Tangible-Asset: 9.85% (52% above median its 10-year median of 6.50)
GF Value™: €51.78 vs. price of €52.00 (0.4% above fair value)
Industry Position: 204% above the Industrial Products median (#624 of 3077)
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.
85GF Score
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