Artemis & Commercial Metals: A Spot of Investment

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A most curious thing has occurred in the financial world, a transaction so subtly intriguing it practically demands a spot of tea and a comfortable armchair. Artemis Investment Management, a firm not entirely unfamiliar with the judicious deployment of capital, has taken a decidedly substantial stake in Commercial Metals Company. A cool $104 million, if you please – a sum that would keep a small principality in biscuits for a considerable period.

They’ve acquired a trifle over 1.5 million shares, representing 1.26% of their reportable assets. A modest percentage, perhaps, but one can’t help but suspect there’s a bit of a story behind it. Artemis, you see, isn’t the sort of firm to throw money about willy-nilly. They prefer a considered approach, a bit like choosing a perfectly fitting pair of spats – it must be just right.

Their portfolio, as one might expect, is a thoroughly respectable affair. Nvidia, Alphabet, Microsoft – the usual suspects, all doing rather well for themselves. But it’s this foray into Commercial Metals that tickles the fancy. The company, for those unfamiliar, manufactures, recycles, and generally tinkers with steel and metal, supplying bits and pieces to builders and industrialists. A solid, dependable sort of business, though not, one might think, the sort to set a chap’s pulse racing.

However, the stock, it seems, has been on a bit of a tear, leaping upwards by nearly 60% in the last year. Rather a spirited performance, wouldn’t you agree? And despite the price already having taken a jolly good run, Artemis clearly believes there’s still a bit of jam to be spread. The EV/EBITDA ratio has crept up a bit, admittedly, but it seems our friends at Artemis aren’t easily deterred.

Now, here’s where things get particularly interesting. Commercial Metals, in a display of commendable enterprise, acquired two precast concrete and pipe companies recently – a transaction amounting to a hefty $2.5 billion. A considerable outlay, certainly, but one can’t help but suspect this is what caught Artemis’s discerning eye. These acquisitions bolster the company’s Construction Solutions Group, a rather clever bit of business, focusing on value-added services rather than simply flogging bits of steel. A distinctly sensible move, wouldn’t you say?

And let’s not forget the company’s commendable efforts in the sustainability department. Low water usage, minimal energy consumption, and a general aversion to virgin materials – all rather dashing, really. They also happen to be benefiting from a spot of good fortune in the form of infrastructure investment, the AI boom, and a general trend towards reshoring manufacturing. A confluence of favourable circumstances, as it were.

Here’s a quick glance at the numbers, for those who insist on such things:

Metric Value
Revenue (TTM) $8.01 billion
Net income (TTM) $437.66 million
Dividend yield 0.94%
Price (as of Jan. 30, 2026) $76.87

Now, I confess, this isn’t typically the sort of stock I’d be reaching for myself. A bit too… solid, perhaps. But one can certainly understand Artemis’s interest. Commercial Metals appears to be a well-managed, strategically positioned company with a bright future. It’s a company worth keeping an eye on, particularly if one is inclined towards the more… substantial side of the investment world. A dash of prudence, a touch of optimism, and a healthy respect for a well-made piece of steel – that, my friends, is a recipe for success.

Their top holdings, for those curious, are as follows:

  • Nvidia: $297.68 million (3.6% of AUM)
  • Alphabet: $259.83 million (3.1% of AUM)
  • Microsoft: $204.42 million (2.5% of AUM)
  • Amazon: $170.79 million (2.1% of AUM)
  • Abbvie: $160.86 million (1.9% of AUM)

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2026-02-02 20:04