CEMEX, S.A.B. de C.V., together with its subsidiaries, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, clinker, and other construction materials.
The last earnings update was 55 days ago.
Discounted Cash Flow Calculation for DB:CEXA using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:CEXA DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
CEMEX. de's share price is below the future cash flow value, and at a moderate discount (> 20%).
CEMEX. de's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
CEMEX. de's earnings available for a low price, and how does
this compare to other companies in the same industry?
CEMEX. de's earnings are expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).
CEMEX. de's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
CEMEX. de's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Fernando Ángel González Olivieri has been the Chief Executive Officer of CEMEX, S.A.B. de C.V. since May 15, 2014. During the first nine years, he held several positions in Strategic Planning, Business Development and Human Resources. Mr. González Olivieri served as the Chief Financial Officer of CEMEX, S.A.B. de C.V since April 12, 2011 and served as its Executive Vice President of Finance and Administration. Mr. González Olivieri served as Executive Vice President of Planning and Finance at CEMEX, S.A.B. de C.V. since February 2010. He served as an Executive Vice President of Planning and Development at CEMEX, S.A.B. de C.V. since May 2009. He served as President of the Europe, Middle East, Africa, Asia & Australia Region at Cemex S.A.B. de C.V., since March 2005. He served as the President of Expanded European Region of Cemex S.A.B. de C.V. since March 2005. He also served as President of CEMEX South America and the Caribbean region from May 01, 2003 to February 2005. He joined CEMEX in 1989 and served as its Vice President of Human Resources from 1992 to 1994, Corporate Vice President of Strategic Planning from 1994 to 1998, President of CEMEX Venezuela from 1998 to 2000 and President of CEMEX Asia from 2000 to May 2003. He served at Grupo Industrial Alfa, S.A. de C.V. from 1976 to 1989. He has been Non-Independent Director of CEMEX, S.A.B. de C.V. since March 26, 2015. He has been a Director of Grupo Cementos de Chihuahua, S.A.B. de C.V. since 2010. He serves as Director of Axtel, S.A.B. de C.V. since February 2016. He was a member of the board of directors of CEMEX México until February 2017. He earned B.A. and M.B.A. degrees from Tecnológico de Monterrey.
Insufficient data for Fernando to compare compensation growth.
Insufficient data for Fernando to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the CEMEX. de management team is about average.
Rogelio Zambrano Lozano
Executive Chairman of the Board
Fernando González Olivieri
CEO & Non-Independent Director
José González Flores
Executive Vice President of Finance & Administration
Jesús Vicente Herrera
Executive VP of Sustainability & Operations Development
Rafael Garza Lozano
Chief Accounting Officer
Executive VP of Investor Relations
Secretary & Senior VP of Legal
Juan San Agustín Rubio
Executive VP of Strategic Planning & New Business Development
Executive Vice President of Global Commercial Development
Jaime Elizondo Chapa
Executive Vice President of Global Supply Chain Development
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the CEMEX. de board of directors is over 10 years, this suggests they are a seasoned and experienced board.
CEMEX, S.A.B. de C.V., together with its subsidiaries, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, clinker, and other construction materials. The company also offers various complementary construction products, including asphalt products; concrete blocks and roof tiles; architectural products; concrete pipes for storm and sanitary sewers applications; and other precast products comprising rail products, concrete floors, box culverts, bridges, drainage basins, barriers, and parking curbs. In addition, it provides building solutions for housing projects, pavement projects, and green building consultancy services; and information technology solutions. The company has operations in Mexico; the United States; Europe; South and Central America, and the Caribbean; Asia, the Middle East, and Africa; and internationally. CEMEX, S.A.B. de C.V. was founded in 1906 and is headquartered in San Pedro Garza García, Mexico.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.