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 Analysis

Solid track record established dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.2%

LHN

10.4%

CH Basic Materials

3.9%

CH Market


1 Year Return

-30.4%

LHN

-28.4%

CH Basic Materials

-6.9%

CH Market

Return vs Industry: LHN underperformed the Swiss Basic Materials industry which returned -28.4% over the past year.

Return vs Market: LHN underperformed the Swiss Market which returned -6.9% over the past year.


Shareholder returns

LHNIndustryMarket
7 Day7.2%10.4%3.9%
30 Day-23.4%-25.3%-9.1%
90 Day-36.2%-36.5%-15.5%
1 Year-27.7%-30.4%-26.0%-28.4%-2.3%-6.9%
3 Year-35.4%-42.2%-35.5%-40.9%11.6%0.5%
5 Year-41.7%-50.5%-26.8%-36.1%16.1%-2.9%

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?

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LHN (CHF34.24) is trading below our estimate of fair value (CHF62.62)

Significantly Below Fair Value: LHN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LHN is poor value based on its PE Ratio (9.3x) compared to the Basic Materials industry average (9.1x).

PE vs Market: LHN is good value based on its PE Ratio (9.3x) compared to the Swiss market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LHN is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: LHN is good value based on its PB Ratio (0.7x) compared to the XE Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is LafargeHolcim forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHN's forecast earnings growth (3.2% per year) is above the savings rate (-0.6%).

Earnings vs Market: LHN's earnings (3.2% per year) are forecast to grow slower than the Swiss market (8.6% per year).

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

Revenue vs Market: LHN's revenue (1.7% per year) is forecast to grow slower than the Swiss market (2.4% per year).

High Growth Revenue: LHN's revenue (1.7% 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 (7.7%).


Next Steps

Past Performance

How has LafargeHolcim performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHN has high quality earnings.

Growing Profit Margin: LHN's current net profit margins (8.3%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: LHN's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: LHN's earnings growth over the past year (48.4%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: LHN earnings growth over the past year (48.4%) exceeded the Basic Materials industry 20.8%.


Return on Equity

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


Next Steps

Financial Health

How is LafargeHolcim's financial position?


Financial Position Analysis

Short Term Liabilities: LHN's short term assets (CHF12.2B) exceed its short term liabilities (CHF9.1B).

Long Term Liabilities: LHN's short term assets (CHF12.2B) do not cover its long term liabilities (CHF17.7B).


Debt to Equity History and Analysis

Debt Level: LHN's debt to equity ratio (40.7%) is considered high.

Reducing Debt: LHN's debt to equity ratio has reduced from 58% to 40.7% over the past 5 years.

Debt Coverage: LHN's debt is well covered by operating cash flow (37.6%).

Interest Coverage: LHN's interest payments on its debt are well covered by EBIT (7.2x 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 1x debt).


Next Steps

Dividend

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

5.84%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: LHN's dividend (5.84%) is higher than the bottom 25% of dividend payers in the Swiss market (2.16%).

High Dividend: LHN's dividend (5.84%) is in the top 25% of dividend payers in the Swiss market (4.34%)


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 (54.3%), 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 covered by earnings (57.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Jan Jenisch (53yo)

2.5s

Tenure

CHF8,633,958

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 ($USD9.03M) is above average for companies of similar size in the Swiss market ($USD6.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jan Jenisch
Chief Executive Officer2.5yrsCHF8.63m0.042% CHF8.9m
Géraldine J. Picaud
Chief Financial Officer2.17yrsno data0.0065% CHF1.4m
Alessandra Girolami
Head of Investor Relations3.5yrsno datano data
Keith Carr
Group General Counsel and Head of Legal & Complianceno datano data0.00081% CHF170.2k
Feliciano Muñoz
Head of Human Resources1.83yrsno data0.00043% CHF90.4k
Martin Kriegner
Region Head of Asia Pacific3.58yrsno data0.0027% CHF556.8k
Oliver Osswald
Region Head of Latin America3.58yrsno data0.00095% CHF199.6k
Marcel Cobuz
Region Head of Europe2.17yrsno data0.0025% CHF516.9k
René Thibault
Head of North America Region2.17yrsno data0.0020% CHF424.5k
Jamie Gentoso
CEO of U.S. Cement Operations1.83yrsno datano data

2.2yrs

Average Tenure

53yo

Average Age

Experienced Management: LHN's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Óscar Fanjul Martín
Independent Vice Chairman2.83yrsCHF410.00k0.0026% CHF537.9k
Paul Desmarais
Independent Director4.67yrsCHF250.00k0.0073% CHF1.5m
Patrick Kron
Independent Director2.83yrsCHF410.00k0.00055% CHF115.6k
Thomas Schmidheiny
Honorary Chairman1.83yrsno data7.46% CHF1.6b
Beat Hess
Independent Chairman2.83yrsCHF1.72m0.0093% CHF2.0m
Dieter Spälti
Independent Director17.17yrsCHF294.34k0.013% CHF2.7m
Colin Hall
Independent Director0.83yrCHF145.83kno data
Jürg Oleas
Independent Director3.83yrsCHF254.34k0.0013% CHF262.7k
William Loader
Independent Director14.17yrsCHF375.00k0.0035% CHF739.7k
Hanne Birgitte Breinbjerg Sørensen
Independent Director7.17yrsCHF290.00k0.0018% CHF382.4k

3.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: LHN's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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: CHF21.013b
  • Shares outstanding: 613.69m
  • 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 segments: Cement, Aggregates, Ready-mix Concrete, and Solutions & Products. The company offers cement, hydraulic binders, clinker, and other cementitious materials; aggregates, such as crushed stone, gravel, and sand; ready-mix concrete, concrete products, asphalts, mortars, and other products and services; and construction and paving, and trading services. Its products are used in infrastructure projects, such as transport, roads, energy, and sports and cultural facilities, as well as in the mining industry; and building projects comprising individual housing, collective housing, office buildings, industrial and commercial buildings, and institutional buildings. The company also provides its products for affordable housing, distribution and retail, and oil and gas industries. The company was formerly known as Holcim Ltd. and changed its name to LafargeHolcim Ltd in July 2015. LafargeHolcim Ltd was founded in 1833 and is headquartered in Jona, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 21:09
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.