BMV:CEMEX CPO

Stock Analysis Report

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Executive Summary

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.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has CEMEX. de's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CEMEX CPO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

CEMEX CPO

-0.3%

MX Basic Materials

0.01%

MX Market


1 Year Return

-38.2%

CEMEX CPO

-37.1%

MX Basic Materials

-11.8%

MX Market

Return vs Industry: CEMEX CPO matched the MX Basic Materials industry which returned -37.4% over the past year.

Return vs Market: CEMEX CPO underperformed the MX Market which returned -12.3% over the past year.


Shareholder returns

CEMEX CPOIndustryMarket
7 Day2.1%-0.3%0.01%
30 Day5.3%2.7%2.7%
90 Day-20.1%-26.0%-11.6%
1 Year-36.6%-38.2%-35.6%-37.1%-9.4%-11.8%
3 Year-67.2%-68.0%-52.5%-55.2%-13.4%-19.7%
5 Year-61.9%-62.8%-40.0%-44.8%-3.1%-14.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CEMEX. de undervalued compared to its fair value and its price relative to the market?

13.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CEMEX CPO (MX$4.93) is trading below our estimate of fair value (MX$5.79)

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


Price To Earnings Ratio

PE vs Industry: CEMEX CPO is poor value based on its PE Ratio (35.4x) compared to the Basic Materials industry average (12.9x).

PE vs Market: CEMEX CPO is poor value based on its PE Ratio (35.4x) compared to the MX market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: CEMEX CPO is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CEMEX CPO is good value based on its PB Ratio (0.4x) compared to the XS Basic Materials industry average (0.7x).


Next Steps

Future Growth

How is CEMEX. de forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

50.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEMEX CPO's forecast earnings growth (52.1% per year) is above the savings rate (7.1%).

Earnings vs Market: CEMEX CPO's earnings (52.1% per year) are forecast to grow faster than the MX market (17.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CEMEX CPO's revenue (6.4% per year) is forecast to grow faster than the MX market (5.6% per year).

High Growth Revenue: CEMEX CPO's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CEMEX CPO's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has CEMEX. de performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CEMEX CPO has a large one-off loss of $398.6M impacting its March 31 2020 financial results.

Growing Profit Margin: CEMEX CPO's current net profit margins (0.7%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: CEMEX CPO has become profitable over the past 5 years, growing earnings by 14.8% per year.

Accelerating Growth: CEMEX CPO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CEMEX CPO had negative earnings growth (-76.8%) over the past year, making it difficult to compare to the Basic Materials industry average (-16.2%).


Return on Equity

High ROE: CEMEX CPO's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is CEMEX. de's financial position?


Financial Position Analysis

Short Term Liabilities: CEMEX CPO's short term assets ($4.8B) exceed its short term liabilities ($4.6B).

Long Term Liabilities: CEMEX CPO's short term assets ($4.8B) do not cover its long term liabilities ($13.8B).


Debt to Equity History and Analysis

Debt Level: CEMEX CPO's debt to equity ratio (102.5%) is considered high.

Reducing Debt: CEMEX CPO's debt to equity ratio has reduced from 168.3% to 102.5% over the past 5 years.

Debt Coverage: CEMEX CPO's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: CEMEX CPO's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

What is CEMEX. de's current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CEMEX CPO's dividend (4.55%) is higher than the bottom 25% of dividend payers in the MX market (2.54%).

High Dividend: CEMEX CPO's dividend (4.55%) is low compared to the top 25% of dividend payers in the MX market (8.23%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether CEMEX CPO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CEMEX CPO's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (160.8%), CEMEX CPO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CEMEX CPO's dividend in 3 years as they are not forecast to pay a notable one for the MX market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Fernando Ángel González Olivieri (65yo)

6yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Rogelio Zambrano Lozano
Executive Chairman of the Board6yrsno datano data
Fernando Ángel González Olivieri
CEO & Non-Independent Director6yrsno datano data
Maher Al-Haffar
Executive Vice President of Finance & Administrationno datano datano data
Juan Romero Torres
Executive Vice President of Sustainability0.67yrno datano data
Rafael Garza Lozano
Vice President of Comptrollership21.33yrsno datano data
Tomás Milmo Santos
Non-Independent Director14.33yrsno datano data
Roger Saldaña Madero
Senior VP of Legal & Secretary2.92yrsno datano data
Mauricio Doehner Cobian
Executive Vice President of Corporate Communicationsno datano datano data
Ricardo Naya Barba
President of Mexicono datano datano data
Jaime Gerardo Elizondo Chapa
Executive Vice President of Global Supply Chain Development1.25yrsno datano data

4.5yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CEMEX CPO's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rogelio Zambrano Lozano
Executive Chairman of the Board6yrsno datano data
Fernando Ángel González Olivieri
CEO & Non-Independent Director6yrsno datano data
Tomás Milmo Santos
Non-Independent Director14.33yrsno datano data
Armando J. García Segovia
Independent Director37.33yrsno datano data
Rodolfo García Muriel
Independent Director35.33yrsno datano data
Francisco Javier Fernández Carbajal
Independent Director8.25yrsno datano data
Dionisio Garza Medina
Independent Director25.33yrsno datano data
Ramiro Gerardo Villarreal Morales
Independent Director1.33yrsno datano data
Everardo Elizondo Almaguer
Independent Director4.17yrsno datano data
Ian Christian Armstrong Zambrano
Non-Independent Director5.17yrsno datano data

7.1yrs

Average Tenure

65yo

Average Age

Experienced Board: CEMEX CPO's board of directors are considered experienced (7.1 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

CEMEX, S.A.B. de C.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CEMEX, S.A.B. de C.V.
  • Ticker: CEMEX CPO
  • Exchange: BMV
  • Founded: 1906
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: Mex$72.558b
  • Shares outstanding: 14.69b
  • Website: https://www.cemex.com

Number of Employees


Location

  • CEMEX, S.A.B. de C.V.
  • Avenida Ricardo Margain Zozaya 325
  • Colonia Valle del Campestre
  • San Pedro Garza García
  • Nuevo Leon
  • 66265
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CXMS.FOTCPK (Pink Sheets LLC)YesCPOsUSUSDApr 1993
CEMEX CPOBMV (Bolsa Mexicana de Valores)YesCPOsMXMXNApr 1993
CEXBDB (Deutsche Boerse AG)YesCPOsDEEURApr 1993
CXNYSE (New York Stock Exchange)SPON ADR NEWUSUSDSep 1999
CEXADB (Deutsche Boerse AG)SPON ADR NEWDEEURSep 1999
0A0TLSE (London Stock Exchange)SPON ADR NEWGBEURSep 1999

Biography

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; roof tiles; architectural products; concrete pipes for storm and sanitary sewers applications; and other precast products, such as 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; engineering and project, plant optimization, customized, operation and maintenance, network, and camp services; cement trade maritime service; and information technology solutions. The company operates in Mexico, the United States, Europe, South and Central America, the Caribbean, Asia, the Middle East, and Africa. As of December 31, 2019, it operated approximately 2,000 stores. CEMEX, S.A.B. de C.V. was founded in 1906 and is based in San Pedro Garza García, Mexico. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 18:54
End of Day Share Price2020/05/26 00:00
Earnings2020/03/31
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.