NYSE:CPAC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

CPAC

-3.6%

US Basic Materials

-4.2%

US Market


1 Year Return

-11.5%

CPAC

18.9%

US Basic Materials

14.0%

US Market

Return vs Industry: CPAC underperformed the US Basic Materials industry which returned 18.9% over the past year.

Return vs Market: CPAC underperformed the US Market which returned 14% over the past year.


Shareholder returns

CPACIndustryMarket
7 Day-1.6%-3.6%-4.2%
30 Day-5.3%-5.6%-1.8%
90 Day-6.8%-7.7%2.6%
1 Year-6.8%-11.5%20.0%18.9%16.3%14.0%
3 Year9.8%-4.7%7.3%4.7%43.2%34.0%
5 Year35.7%6.0%59.8%53.2%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPAC ($8.81) is trading below our estimate of fair value ($14.4)

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


Price To Earnings Ratio

PE vs Industry: CPAC is good value based on its PE Ratio (19.8x) compared to the Basic Materials industry average (25.5x).

PE vs Market: CPAC is poor value based on its PE Ratio (19.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CPAC is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CPAC is good value based on its PB Ratio (1.8x) compared to the US Basic Materials industry average (2x).


Next Steps

Future Growth

How is Cementos PacasmayoA forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPAC's forecast earnings growth (14.3% per year) is above the savings rate (1.7%).

Earnings vs Market: CPAC's earnings (14.3% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: CPAC's revenue (6.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CPAC's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPAC's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Cementos PacasmayoA performed over the past 5 years?

-21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPAC has high quality earnings.

Growing Profit Margin: CPAC's current net profit margins (9.5%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: CPAC's earnings have declined by -21.5% per year over the past 5 years.

Accelerating Growth: CPAC's earnings growth over the past year (72.2%) exceeds its 5-year average (-21.5% per year).

Earnings vs Industry: CPAC earnings growth over the past year (72.2%) exceeded the Basic Materials industry 30.2%.


Return on Equity

High ROE: CPAC's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Cementos PacasmayoA's financial position?


Financial Position Analysis

Short Term Liabilities: CPAC's short term assets (PEN748.3M) exceed its short term liabilities (PEN352.7M).

Long Term Liabilities: CPAC's short term assets (PEN748.3M) do not cover its long term liabilities (PEN1.2B).


Debt to Equity History and Analysis

Debt Level: CPAC's debt to equity ratio (77.5%) is considered high.

Reducing Debt: CPAC's debt to equity ratio has increased from 42.7% to 77.5% over the past 5 years.

Debt Coverage: CPAC's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: CPAC's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CPAC's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

5.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPAC's dividend (5.9%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: CPAC's dividend (5.9%) is in the top 25% of dividend payers in the US market (3.77%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.7%), CPAC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPAC's dividends in 3 years are not forecast to be well covered by earnings (234.1% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Humberto Reynaldo Nadal Del Carpio (55yo)

8.8yrs

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

NamePositionTenureCompensationOwnership
Humberto Reynaldo Nadal Del Carpio
CEO & Director8.8yrsno datano data
Manuel Bartolome Ferreyros Peña
CFO and VP of Administration & Finance11.9yrsno datano data
Hugo Castillo
Central Operations Manager8.1yrsno datano data
Claudia Bustamante
Head of Investor Relations0yrsno datano data
Jorge Javier Durand Planas
General Counsel & VP of Legal11.4yrsno datano data
Carlos Paúl Cateriano Alzamora
Central Manager Of Corporate Social Responsibility & Communications0yrsno datano data
Diego Arispe Silva
Central Manager Of Human Management0.7yrsno datano data

8.8yrs

Average Tenure

54yo

Average Age

Experienced Management: CPAC's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Humberto Reynaldo Nadal Del Carpio
CEO & Director8.8yrsno datano data
Manuel Bartolome Ferreyros Peña
CFO and VP of Administration & Finance11.9yrsno datano data
Jose Raimundo Morales Dasso
Vice Chairman2.5yrsno datano data
Hilda Margarita Ochoa-Brillembourg
Independent Director8.3yrsno datano data
Felipe Arturo Ortiz de Zevallos Madueño
Independent Director5.9yrsno datano data
Roberto Enrique Dañino Zapata
Director11.7yrsno datano data
Eduardo Hochschild Beeck
Chairman of the Board0yrsno datano data
Carlos Miguel Heeren Ramos
Director2.9yrsno datano data
Marco Antonio Zaldivar García
Independent Director2.9yrsno datano data
Juan Francisco Sabogal Correa
Director2yrsno datano data

5.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CPAC's board of directors are considered experienced (5.9 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

Cementos Pacasmayo S.A.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cementos Pacasmayo S.A.A.
  • Ticker: CPAC
  • Exchange: NYSE
  • Founded: 1949
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: S/2.603b
  • Listing Market Cap: S/764.427m
  • Shares outstanding: 428.11m
  • Website: https://www.cementospacasmayo.com.pe

Number of Employees


Location

  • Cementos Pacasmayo S.A.A.
  • Calle La Colonia 150
  • Urbanización El Vivero
  • Lima
  • Lima
  • Peru

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPCCDB (Deutsche Boerse AG)UNSP ADR EACH REP 5 ORD SHSDEEURNo data
CPACASC1BVL (Bolsa de Valores de Lima)YesCommon SharesPEPENAug 1999
CPACASI1BVL (Bolsa de Valores de Lima)Investment SharesPEPENAug 1999
CPACNYSE (New York Stock Exchange)UNSP ADR EACH REP 5 ORD SHSUSUSDFeb 2012
EPCCDB (Deutsche Boerse AG)UNSP ADR EACH REP 5 ORD SHSDEEURFeb 2012
CPACBVL (Bolsa de Valores de Lima)UNSP ADR EACH REP 5 ORD SHSPEUSDFeb 2012

Biography

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in the northern region of Peru. The company operates in 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 large construction sites; concrete blocks, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete blocks for structural and non-structural uses; and cement based products, including assembly gravity walls, precast beams, sheet piles, and others. The company also produces and distributes quicklime for use in steel, food, fishing, and chemical industries, as well as mining, agriculture, and other industries. In addition, it distributes other construction materials manufactured by third parties, such as steel rebars, cables, and pipes. The company distributes its cement products and other construction materials manufactured by third parties through a network of 294 independent retailers and 447 hardware stores. It also sells its cement products directly to other retailers, and to private construction companies and government entities. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:24
End of Day Share Price2020/02/24 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.