NYSE:CX

Stock Analysis Report

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

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

22.5%

CX

15.0%

US Basic Materials

7.2%

US Market


1 Year Return

-55.8%

CX

-19.8%

US Basic Materials

-10.4%

US Market

Return vs Industry: CX underperformed the US Basic Materials industry which returned -19.8% over the past year.

Return vs Market: CX underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

CXIndustryMarket
7 Day22.5%15.0%7.2%
30 Day-37.3%-22.4%-12.6%
90 Day-44.8%-35.5%-19.4%
1 Year-54.7%-55.8%-19.1%-19.8%-8.5%-10.4%
3 Year-75.7%-76.3%-23.0%-24.9%15.8%8.3%
5 Year-75.3%-75.9%13.5%9.2%35.8%21.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CX ($1.83) is trading below our estimate of fair value ($4.35)

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


Price To Earnings Ratio

PE vs Industry: CX is poor value based on its PE Ratio (48.1x) compared to the Basic Materials industry average (14.6x).

PE vs Market: CX is poor value based on its PE Ratio (48.1x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CX is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: CX is good value based on its PB Ratio (0.3x) compared to the US Basic Materials industry average (1.1x).


Next Steps

Future Growth

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

40.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CX's forecast earnings growth (40% per year) is above the savings rate (1.7%).

Earnings vs Market: CX's earnings (40% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: CX's revenue (3.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CX's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CX's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

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

28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CX has a large one-off loss of $404.0M impacting its December 31 2019 financial results.

Growing Profit Margin: CX's current net profit margins (0.4%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: CX has become profitable over the past 5 years, growing earnings by 28.4% per year.

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

Earnings vs Industry: CX had negative earnings growth (-87.7%) over the past year, making it difficult to compare to the Basic Materials industry average (32.4%).


Return on Equity

High ROE: CX's Return on Equity (0.8%) is considered low.


Next Steps

Financial Health

How is CEMEX. de's financial position?


Financial Position Analysis

Short Term Liabilities: CX's short term assets ($4.6B) do not cover its short term liabilities ($5.4B).

Long Term Liabilities: CX's short term assets ($4.6B) do not cover its long term liabilities ($13.1B).


Debt to Equity History and Analysis

Debt Level: CX's debt to equity ratio (97.2%) is considered high.

Reducing Debt: CX's debt to equity ratio has reduced from 163.7% to 97.2% over the past 5 years.

Debt Coverage: CX's debt is not well covered by operating cash flow (12.9%).

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


Balance Sheet

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

Debt Coverage by Assets: CX's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

4.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CX's dividend (5.59%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: CX's dividend (5.59%) is in the top 25% of dividend payers in the US market (5.4%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (267.8%), CX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CX's dividends in 3 years are forecast to be thoroughly covered by earnings (11.9% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Fernando Ángel González Olivieri (65yo)

5.83s

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 Board5.83yrsno datano data
Fernando Ángel González Olivieri
CEO & Non-Independent Director5.83yrsno datano data
José Antonio González Flores
Executive VP of Finance & Administration and CFOno datano datano data
Juan Romero Torres
Executive Vice President of Sustainability0.50yrno datano data
Rafael Garza Lozano
Vice President of Comptrollership21.17yrsno datano data
Tomás Milmo Santos
Non-Independent Director14.17yrsno datano data
Maher Al-Haffar
Executive VP of Investor Relations5.83yrsno datano data
Roger Saldaña Madero
Secretary & Senior VP of Legalno datano datano data
Juan Pablo San Agustín Rubio
Executive VP of Strategic Planning & New Business Development8.92yrsno datano data
Jaime Gerardo Elizondo Chapa
Executive Vice President of Global Supply Chain Development1.08yrsno datano data

5.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CX's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rogelio Zambrano Lozano
Executive Chairman of the Board5.83yrsno datano data
Fernando Ángel González Olivieri
CEO & Non-Independent Director5.83yrsno datano data
Tomás Milmo Santos
Non-Independent Director14.17yrsno datano data
Armando J. García Segovia
Independent Director37.17yrsno datano data
Rodolfo García Muriel
Independent Director35.17yrsno datano data
Francisco Javier Fernández Carbajal
Independent Director7yrsno datano data
Dionisio Garza Medina
Independent Director25.17yrsno datano data
Ramiro Gerardo Villarreal Morales
Independent Director1.17yrsno datano data
Everardo Elizondo Almaguer
Independent Director3.92yrsno datano data
Ian Christian Armstrong Zambrano
Non-Independent Director5yrsno datano data

6.4yrs

Average Tenure

65yo

Average Age

Experienced Board: CX's board of directors are considered experienced (6.4 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.


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: CX
  • Exchange: NYSE
  • Founded: 1906
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: Mex$74.377b
  • Listing Market Cap: Mex$3.179b
  • Shares outstanding: 15.09b
  • 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 REP 10 CPOUSUSDSep 1999
CEXADB (Deutsche Boerse AG)SPON ADR REP 10 CPODEEURSep 1999
0A0TLSE (London Stock Exchange)SPON ADR REP 10 CPOGBEURSep 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 Analysis2020/04/01 00:16
End of Day Share Price2020/03/31 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.