Cementos PacasmayoA (BVL:CPACASC1) - Share price, News & Analysis

Q: What is the Fair Price of CPACASC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CPACASC1 (PEN4.05) is trading below our estimate of [[fair value]] (PEN7.06)

CPACASC1 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	3/6
Dividends	2/6

CPACASC1 Stock Overview

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru.

Rewards

Trading at 42.6% below our estimate of its fair value

Earnings have grown 11.1% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 19.51% is not well covered by earnings or forecast to be in the next 3 years

Cementos PacasmayoA Competitors

Unacem CorpA

BVL:UNACEMC1

S/3.2b

Consorcio Cementero del Sur

BVL:CONCESI1

S/922.2m

Fábrica Peruana Eternit

BVL:ETERNII1

S/44.3m

Corporacion Aceros Arequipa

BVL:CORAREI1

S/2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Cementos PacasmayoA
Historical stock prices
Current Share Price	S/4.05
52 Week High	S/5.50
52 Week Low	S/3.54
Beta	0.46
1 Month Change	11.57%
3 Month Change	1.25%
1 Year Change	-11.96%
3 Year Change	-29.57%
5 Year Change	-47.06%
Change since IPO	155.17%

Shareholder Returns

	CPACASC1	PE Basic Materials	PE Market
7D	2.5%	2.2%	2.4%
1Y	-12.0%	-24.3%	24.4%

Return vs Industry: CPACASC1 exceeded the PE Basic Materials industry which returned -24.3% over the past year.

Return vs Market: CPACASC1 underperformed the PE Market which returned 24.4% over the past year.

Price Volatility

Is CPACASC1's price volatile compared to industry and market?
CPACASC1 volatility
CPACASC1 Average Weekly Movement	4.2%
Basic Materials Industry Average Movement	5.3%
Market Average Movement	4.0%
10% most volatile stocks in PE Market	7.4%
10% least volatile stocks in PE Market	1.8%

Stable Share Price: CPACASC1 is not significantly more volatile than the rest of PE stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CPACASC1's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1949	n/a	Humberto Reynaldo Nadal Del Carpio	https://www.cementospacasmayo.com.pe

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru. The company operates through three segments: Cement, Concrete and Precast; Quicklime; and Sales of Construction Supplies. It produces cement for various uses, such as residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products.

Cementos PacasmayoA Fundamentals Summary

How do Cementos PacasmayoA's earnings and revenue compare to its market cap?
CPACASC1 fundamental statistics
Market Cap	S/1.73b
Earnings (TTM)	S/187.41m
Revenue (TTM)	S/2.06b

9.3x

P/E Ratio

0.8x

P/S Ratio

Is CPACASC1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPACASC1 income statement (TTM)
Revenue	S/2.06b
Cost of Revenue	S/1.43b
Gross Profit	S/632.85m
Other Expenses	S/445.44m
Earnings	S/187.41m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.44
Gross Margin	30.71%
Net Profit Margin	9.10%
Debt/Equity Ratio	117.8%

How did CPACASC1 perform over the long term?

See historical performance and comparison

Dividends

19.5%

Current Dividend Yield

233%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CPACASC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CPACASC1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CPACASC1. This is calculated by dividing CPACASC1's market cap by their current preferred multiple.
What is CPACASC1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S/1.73b

CPACASC1 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	6x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

How does CPACASC1's PE Ratio compare to its peers?

CPACASC1 PE Ratio vs Peers

The above table shows the PE ratio for CPACASC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	4.1x
UNACEMC1 Unacem CorpA	6.8x	7.6%	S/3.2b
CONCESI1 Consorcio Cementero del Sur	4x	n/a	S/922.2m
ETERNII1 Fábrica Peruana Eternit	2.6x	n/a	S/44.3m
CORAREI1 Corporacion Aceros Arequipa	2.9x	n/a	S/2.0b
CPACASC1 Cementos PacasmayoA	9.3x	4.1%	S/1.7b

Price-To-Earnings vs Peers: CPACASC1 is expensive based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (4.1x).

Price to Earnings Ratio vs Industry

How does CPACASC1's PE Ratio compare vs other companies in the South American Basic Materials Industry?

Price-To-Earnings vs Industry: CPACASC1 is good value based on its Price-To-Earnings Ratio (9.3x) compared to the South American Basic Materials industry average (9.8x)

Price to Earnings Ratio vs Fair Ratio

What is CPACASC1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CPACASC1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.3x
Fair PE Ratio	10.4x

Price-To-Earnings vs Fair Ratio: CPACASC1 is good value based on its Price-To-Earnings Ratio (9.3x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

Share Price vs Fair Value

What is the Fair Price of CPACASC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CPACASC1 (PEN4.05) is trading below our estimate of fair value (PEN7.06)

Significantly Below Fair Value: CPACASC1 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Cementos PacasmayoA forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPACASC1's forecast earnings growth (4.1% per year) is below the savings rate (7.7%).

Earnings vs Market: CPACASC1's earnings (4.1% per year) are forecast to grow slower than the PE market (7.9% per year).

High Growth Earnings: CPACASC1's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPACASC1's revenue (0.6% per year) is forecast to grow slower than the PE market (2.4% per year).

High Growth Revenue: CPACASC1's revenue (0.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CPACASC1's Return on Equity is forecast to be low in 3 years time (17.6%).

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Past Performance

How has Cementos PacasmayoA performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CPACASC1 has high quality earnings.

Growing Profit Margin: CPACASC1's current net profit margins (9.1%) are higher than last year (8.5%).

Past Earnings Growth Analysis

Earnings Trend: CPACASC1's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: CPACASC1's earnings growth over the past year (23.1%) exceeds its 5-year average (11.1% per year).

Earnings vs Industry: CPACASC1 earnings growth over the past year (23.1%) underperformed the Basic Materials industry 23.1%.

Return on Equity

High ROE: CPACASC1's Return on Equity (14.5%) is considered low.

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Financial Health

How is Cementos PacasmayoA's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CPACASC1's short term assets (PEN1.2B) exceed its short term liabilities (PEN1.1B).

Long Term Liabilities: CPACASC1's short term assets (PEN1.2B) exceed its long term liabilities (PEN916.6M).

Debt to Equity History and Analysis

Debt Level: CPACASC1's net debt to equity ratio (96.2%) is considered high.

Reducing Debt: CPACASC1's debt to equity ratio has increased from 59% to 117.8% over the past 5 years.

Debt Coverage: CPACASC1's debt is not well covered by operating cash flow (10%).

Interest Coverage: CPACASC1's interest payments on its debt are well covered by EBIT (4.2x coverage).

Balance Sheet

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Dividend

What is Cementos PacasmayoA current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

19.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CPACASC1's dividend (19.51%) is higher than the bottom 25% of dividend payers in the PE market (6.38%).

High Dividend: CPACASC1's dividend (19.51%) is low compared to the top 25% of dividend payers in the PE market (25.21%).

Stability and Growth of Payments

Stable Dividend: CPACASC1's dividend payments have been volatile in the past 10 years.

Growing Dividend: CPACASC1's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (233%), CPACASC1's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (729.9%), CPACASC1's dividend payments are not well covered by cash flows.

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Management

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

12.6yrs

Average management tenure

CEO

Humberto Reynaldo Nadal Del Carpio (58 yo)

11.33yrs

Tenure

Mr. Humberto Reynaldo Nadal Del Carpio has been the Chief Executive Officer of Cementos Pacasmayo SAA since April 2011. In April 2006, Mr. Reynaldo Nadal Del Carpio joined Compañía Minera Ares S.A.C., a su...

Leadership Team

Experienced Management: CPACASC1's management team is seasoned and experienced (12.6 years average tenure).

Board Members

Experienced Board: CPACASC1's board of directors are considered experienced (5.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31