Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) - Share price, News & Analysis

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

LOMA Stock Overview

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina.

Rewards

Trading at 76.9% below our estimate of its fair value

Earnings are forecast to grow 31.94% per year

Risk Analysis

Dividend of 6.55% is not well covered by earnings

Profit margins (7.9%) are lower than last year (17.7%)

Loma Negra Compañía Industrial Argentina Sociedad Anónima Competitors

Holcim

SWX:HOLN

CHF28.3b

Holcim (Argentina)

BASE:HARG

AR$56.0b

Price History & Performance

Summary of all time highs, changes and price drops for Loma Negra Compañía Industrial Argentina Sociedad Anónima
Historical stock prices
Current Share Price	US$5.67
52 Week High	US$8.26
52 Week Low	US$5.11
Beta	1.39
1 Month Change	-8.25%
3 Month Change	-10.71%
1 Year Change	-13.30%
3 Year Change	-42.08%
5 Year Change	n/a
Change since IPO	-73.44%

Shareholder Returns

	LOMA	US Basic Materials	US Market
7D	5.6%	-2.7%	-2.7%
1Y	-13.3%	-12.6%	-12.9%

Return vs Industry: LOMA matched the US Basic Materials industry which returned -12.6% over the past year.

Return vs Market: LOMA matched the US Market which returned -12.9% over the past year.

Price Volatility

Is LOMA's price volatile compared to industry and market?
LOMA volatility
LOMA Average Weekly Movement	6.3%
Basic Materials Industry Average Movement	6.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: LOMA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LOMA's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1926	n/a	Sergio Faifman	https://www.lomanegra.com

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Rail Services; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction.

Loma Negra Compañía Industrial Argentina Sociedad Anónima Fundamentals Summary

How do Loma Negra Compañía Industrial Argentina Sociedad Anónima's earnings and revenue compare to its market cap?
LOMA fundamental statistics
Market Cap	AR$78.66b
Earnings (TTM)	AR$5.72b
Revenue (TTM)	AR$72.54b

13.8x

P/E Ratio

1.1x

P/S Ratio

Is LOMA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOMA income statement (TTM)
Revenue	AR$72.54b
Cost of Revenue	AR$50.22b
Gross Profit	AR$22.32b
Other Expenses	AR$16.60b
Earnings	AR$5.72b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	48.85
Gross Margin	30.77%
Net Profit Margin	7.88%
Debt/Equity Ratio	1.1%

How did LOMA perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

91%

Payout Ratio

Valuation

Is Loma Negra Compañía Industrial Argentina Sociedad Anónima undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LOMA ($5.67) is trading below our estimate of fair value ($24.51)

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

Price To Earnings Ratio

PE vs Industry: LOMA is good value based on its PE Ratio (13.8x) compared to the US Basic Materials industry average (16.6x).

PE vs Market: LOMA is good value based on its PE Ratio (13.8x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: LOMA is good value based on its PEG Ratio (0.4x)

Price to Book Ratio

PB vs Industry: LOMA is good value based on its PB Ratio (0.9x) compared to the US Basic Materials industry average (2.2x).

Future Growth

How is Loma Negra Compañía Industrial Argentina Sociedad Anónima forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

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

31.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOMA's forecast earnings growth (31.9% per year) is above the savings rate (1.9%).

Earnings vs Market: LOMA's earnings (31.9% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: LOMA's revenue (27.1% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: LOMA's revenue (27.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LOMA's Return on Equity is forecast to be low in 3 years time (13.2%).

Past Performance

How has Loma Negra Compañía Industrial Argentina Sociedad Anónima performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

25.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LOMA has high quality earnings.

Growing Profit Margin: LOMA's current net profit margins (7.9%) are lower than last year (17.7%).

Past Earnings Growth Analysis

Earnings Trend: LOMA's earnings have grown significantly by 25.7% per year over the past 5 years.

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

Earnings vs Industry: LOMA had negative earnings growth (-28.8%) over the past year, making it difficult to compare to the Basic Materials industry average (-12.2%).

Return on Equity

High ROE: LOMA's Return on Equity (6.3%) is considered low.

Financial Health

How is Loma Negra Compañía Industrial Argentina Sociedad Anónima's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: LOMA's short term assets (ARS22.3B) exceed its short term liabilities (ARS16.2B).

Long Term Liabilities: LOMA's short term assets (ARS22.3B) exceed its long term liabilities (ARS17.7B).

Debt to Equity History and Analysis

Debt Level: LOMA has more cash than its total debt.

Reducing Debt: LOMA's debt to equity ratio has reduced from 383.3% to 1.1% over the past 5 years.

Debt Coverage: LOMA's debt is well covered by operating cash flow (1291.7%).

Interest Coverage: LOMA's interest payments on its debt are well covered by EBIT (10.9x coverage).

Balance Sheet

Dividend

What is Loma Negra Compañía Industrial Argentina Sociedad Anónima current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.55%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LOMA's dividend (6.55%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: LOMA's dividend (6.55%) is in the top 25% of dividend payers in the US market (4.11%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LOMA has been paying a dividend for less than 10 years.

Growing Dividend: LOMA's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (90.7%), LOMA's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (77.6%), LOMA's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

6.1yrs

Average management tenure

CEO

Sergio Faifman (47 yo)

5.5yrs

Tenure

Mr. Sergio Damián Faifman has been Chief Executive Officer at Loma Negra Compañía Industrial Argentina Sociedad Anónima (formerly known as Loma Negra Compania Industrial Argentina Sociedad Anonima) since N...

Leadership Team

Experienced Management: LOMA's management team is seasoned and experienced (6.1 years average tenure).

Board Members

Experienced Board: LOMA's board of directors are considered experienced (4.3 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	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31