SWX:LHN

Stock Analysis Report

Executive Summary

LafargeHolcim Ltd operates as a building materials and solutions company in the Asia Pacific, Europe, Latin America, the Middle East, Africa, North America, and internationally.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has LafargeHolcim's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LHN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

LHN

0.3%

CH Basic Materials

0.5%

CH Market


1 Year Return

15.8%

LHN

19.5%

CH Basic Materials

15.7%

CH Market

Return vs Industry: LHN underperformed the Swiss Basic Materials industry which returned 19.5% over the past year.

Return vs Market: LHN exceeded the Swiss Market which returned 15.7% over the past year.


Shareholder returns

LHNIndustryMarket
7 Day-0.8%0.3%0.5%
30 Day7.3%5.3%3.7%
90 Day10.5%10.5%5.0%
1 Year20.3%15.8%23.2%19.5%21.3%15.7%
3 Year6.3%-4.9%5.2%-3.2%43.0%24.5%
5 Year-11.3%-24.7%24.0%8.3%35.1%13.7%

Price Volatility Vs. Market

How volatile is LafargeHolcim's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LafargeHolcim undervalued compared to its fair value and its price relative to the market?

37.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LHN (CHF51.7) is trading below our estimate of fair value (CHF83.21)

Significantly Below Fair Value: LHN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LHN is poor value based on its PE Ratio (14.1x) compared to the Basic Materials industry average (12.7x).

PE vs Market: LHN is good value based on its PE Ratio (14.1x) compared to the Swiss market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: LHN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: LHN is good value based on its PB Ratio (1.1x) compared to the XE Basic Materials industry average (1.1x).


Next Steps

Future Growth

How is LafargeHolcim forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHN's forecast earnings growth (9% per year) is above the savings rate (3.3%).

Earnings vs Market: LHN's earnings (9% per year) are forecast to grow slower than the Swiss market (10% per year).

High Growth Earnings: LHN's earnings are forecast to grow, but not significantly.

Revenue vs Market: LHN's revenue (3.4% per year) is forecast to grow slower than the Swiss market (3.5% per year).

High Growth Revenue: LHN's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LHN's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has LafargeHolcim performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHN has high quality earnings.

Growing Profit Margin: LHN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LHN's earnings have declined by -7% per year over the past 5 years.

Accelerating Growth: LHN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LHN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (20.6%).


Return on Equity

High ROE: LHN's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LafargeHolcim's financial position?


Financial Position Analysis

Short Term Liabilities: LHN's short term assets (CHF12.4B) exceeds its short term liabilities (CHF9.8B)

Long Term Liabilities: LHN's short term assets (CHF12.4B) do not cover its long term liabilities (18.6B)


Debt to Equity History and Analysis

Debt Level: LHN's debt to equity ratio (46.3%) is considered high.

Reducing Debt: LHN's debt to equity ratio has reduced from 66.3% to 46.3% over the past 5 years.

Debt Coverage: LHN's debt is well covered by operating cash flow (28%).

Interest Coverage: LHN's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: LHN has a high level of physical assets or inventory.

Debt Coverage by Assets: LHN's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is LafargeHolcim's current dividend yield, its reliability and sustainability?

3.87%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.8%markettop25%3.6%industryaverage2.9%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: LHN's dividend (3.87%) is higher than the bottom 25% of dividend payers in the Swiss market (1.84%).

High Dividend: LHN's dividend (3.87%) is in the top 25% of dividend payers in the Swiss market (3.61%)


Stability and Growth of Payments

Stable Dividend: LHN's dividend payments have been volatile in the past 10 years.

Growing Dividend: LHN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.5%), LHN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LHN's dividends in 3 years are forecast to be well covered by earnings (49.7% payout ratio).


Next Steps

Management

What is the CEO of LafargeHolcim's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Jan Jenisch (53yo)

2.2yrs

Tenure

CHF7,411,543

Compensation

Mr. Jan Jenisch, Iic. Rer. Pol., has been the Chief Executive Officer of LafargeHolcim since September 1, 2017. Mr. Jenisch served as the Chief Executive Officer of Sika AG since January 1, 2012 until July ...


CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD7.48M) is above average for companies of similar size in the Swiss market ($USD4.06M).

Compensation vs Earnings: Jan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: LHN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: LHN's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jan Jenisch (53yo)

    Chief Executive Officer

    • Tenure: 2.2yrs
    • Compensation: CHF7.41m
  • Keith Carr (53yo)

    Group General Counsel and Head of Legal & Compliance

    • Tenure: 0yrs
  • Géraldine J. Picaud (49yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Oliver Osswald (48yo)

    Region Head of Latin America

    • Tenure: 3.3yrs
  • Martin Kriegner (58yo)

    Region Head of Asia Pacific

    • Tenure: 3.3yrs
  • Marcel Cobuz (48yo)

    Region Head of Europe

    • Tenure: 1.8yrs
  • Alessandra Girolami

    Head of Investor Relations

    • Tenure: 3.2yrs
  • René Thibault (53yo)

    Head of North America Region

    • Tenure: 1.8yrs
  • Feliciano Muñoz (56yo)

    Head of Human Resources

    • Tenure: 1.5yrs
  • Jamie Gentoso

    CEO of U.S. Cement Operations

    • Tenure: 1.5yrs

Board Members

  • Óscar Fanjul Martín (70yo)

    Vice Chairman

    • Tenure: 2.5yrs
    • Compensation: CHF443.33k
  • Paul Desmarais (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CHF250.00k
  • Patrick Kron (66yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CHF364.34k
  • Thomas Schmidheiny (74yo)

    Honorary Chairman

    • Tenure: 1.5yrs
    • Compensation: CHF104.17k
  • Beat Hess (70yo)

    Chairman

    • Tenure: 2.5yrs
    • Compensation: CHF1.64m
  • Dieter Spälti (58yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: CHF329.75k
  • Colin Hall (49yo)

    Director

    • Tenure: 0.8yrs
  • Jürg Oleas (62yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: CHF262.12k
  • William Loader (71yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CHF375.00k
  • Hanne Birgitte Breinbjerg Sørensen (54yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: CHF290.00k

Company Information

LafargeHolcim Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LafargeHolcim Ltd
  • Ticker: LHN
  • Exchange: SWX
  • Founded: 1833
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: CHF31.228b
  • Shares outstanding: 605.19m
  • Website: https://www.lafargeholcim.com

Number of Employees


Location

  • LafargeHolcim Ltd
  • Zurcherstrasse 156
  • Jona
  • St. Gallen
  • 8645
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCML.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1992
HLBNDB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1992
LHNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1992
0QKYLSE (London Stock Exchange)YesRegistered SharesGBEURJan 1992
HLBNXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJan 1992
LHNENXTPA (Euronext Paris)YesRegistered SharesFREURJan 1992
LHN NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJan 1992
HCML.YOTCPK (Pink Sheets LLC)ADR EACH REPR 0.20 ORDUSUSDOct 2008
HLBBDB (Deutsche Boerse AG)ADR EACH REPR 0.20 ORDDEEUROct 2008

Biography

LafargeHolcim Ltd operates as a building materials and solutions company in the Asia Pacific, Europe, Latin America, the Middle East, Africa, North America, and internationally. It operates in four segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 20:50
End of Day Share Price2019/11/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.