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CEMX: Upcoming Contract Awards Will Drive Stronger Profitability And Share Price Momentum

North American Infrastructure Investments Will Drive Sustainable Opportunities

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CEMX
AnalystConsensusTarget
Not Invested
Published 10 Aug 2025

Update shared on 10 Dec 2025

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1Y
31.4%
7D
-4.3%

Analysts have marginally reaffirmed their outlook on CEMATRIX, maintaining the target price at approximately $0.65 per share as they continue to factor in expectations of robust forecast revenue growth and steady profit margins.

What's in the News

  • CEMATRIX completed its previously announced share buyback program, repurchasing a total of 703,589 shares, representing approximately 0.47% of shares outstanding for CAD 210 million under the April 15, 2025 authorization (Key Developments).
  • Between July 1, 2025 and September 30, 2025, the company repurchased no additional shares under the buyback program, indicating that the repurchase capacity has effectively been exhausted or paused (Key Developments).
  • The company announced approximately CAD 11.9 million in new contract awards spanning highway improvements, pipeline abandonment, tank base, tunnel, and lightweight fill projects across Canada and the US, with work scheduled to begin in 2025 and 2026 (Key Developments).
  • These newly awarded contracts include multiple load reducing fill and grout applications, underscoring continued demand for CEMATRIX cellular concrete solutions in infrastructure and utility markets (Key Developments).
  • Management continues to position CEMATRIX as an early stage growth company with positive EBITDA, positive operating cash flow, and a strong balance sheet, supported by its wholly owned subsidiaries in Canada and the US (Key Developments).

Valuation Changes

  • Fair Value Estimate: unchanged at approximately CA$0.65 per share. This indicates no revision to the intrinsic value assessment.
  • Discount Rate: unchanged at 7.06 percent. This reflects a stable view of the assumed risk profile.
  • Revenue Growth: effectively unchanged at around 36.70 percent, signaling a stable view on medium term top line expansion.
  • Net Profit Margin: effectively unchanged at roughly 11.93 percent, maintaining prior assumptions on long term profitability.
  • Future P/E: unchanged at about 9.09x, implying a stable valuation multiple on projected earnings.

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Disclaimer

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