NYSE:LOMA

Stock Analysis Report

Loma Negra Compañía Industrial Argentina Sociedad Anónima

Executive Summary

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and markets cement and its by-products in Argentina and Paraguay.


Snowflake Analysis

Very undervalued with exceptional growth potential.


Similar Companies

Share Price & News

How has Loma Negra Compañía Industrial Argentina Sociedad Anónima's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.2%

LOMA

-5.4%

US Basic Materials

-1.1%

US Market


1 Year Return

-45.2%

LOMA

21.4%

US Basic Materials

17.9%

US Market

Return vs Industry: LOMA underperformed the US Basic Materials industry which returned 21.4% over the past year.

Return vs Market: LOMA underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

LOMAIndustryMarket
7 Day-1.2%-5.4%-1.1%
30 Day-10.3%-4.0%1.4%
90 Day-3.0%-3.4%6.9%
1 Year-45.2%-45.2%22.4%21.4%20.3%17.9%
3 Yearn/a11.6%9.0%47.8%38.3%
5 Yearn/a64.7%58.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is Loma Negra Compañía Industrial Argentina Sociedad Anónima's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Loma Negra Compañía Industrial Argentina Sociedad Anónima 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: LOMA ($6.37) is trading below our estimate of fair value ($29.9)

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 (13.6x) compared to the Basic Materials industry average (25.7x).

PE vs Market: LOMA is good value based on its PE Ratio (13.6x) compared to the US market (18.2x).


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 (2x) compared to the US Basic Materials industry average (2.1x).


Next Steps

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 7 analysts?

35.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOMA's forecast earnings growth (35.6% per year) is above the savings rate (1.7%).

Earnings vs Market: LOMA's earnings (35.6% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: LOMA's revenue (27.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: LOMA's revenue (27.5% 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 high in 3 years time (32.5%)


Next Steps

Past Performance

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

34.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOMA has a high level of non-cash earnings.

Growing Profit Margin: LOMA's current net profit margins (13.2%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: LOMA's earnings have grown significantly by 34.7% per year over the past 5 years.

Accelerating Growth: LOMA's earnings growth over the past year (1.2%) is below its 5-year average (34.7% per year).

Earnings vs Industry: LOMA earnings growth over the past year (1.2%) underperformed the Basic Materials industry 30.4%.


Return on Equity

High ROE: LOMA's Return on Equity (14.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: LOMA's short term assets (ARS10.4B) do not cover its short term liabilities (ARS15.2B).

Long Term Liabilities: LOMA's short term assets (ARS10.4B) do not cover its long term liabilities (ARS11.1B).


Debt to Equity History and Analysis

Debt Level: LOMA's debt to equity ratio (40.7%) is considered high.

Reducing Debt: Insufficient data to determine if LOMA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LOMA's debt is well covered by operating cash flow (65.8%).

Interest Coverage: LOMA's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: LOMA's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

2.91%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LOMA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LOMA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LOMA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LOMA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LOMA is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Sergio Damián Faifman (45yo)

3.3yrs

Tenure

0

Mr. Sergio Damián Faifman has been Chief Executive Officer at Loma Negra Compania Industrial Argentina Sociedad Anonima since November 2016. Mr. Faifman serves as Vice-President of Argentina and Paraguay a ...


Leadership Team

NamePositionTenureCompensationOwnership
Sergio Damián Faifman
VP of Board & CEO3.3yrsno datano data
Marcos Isabelino Gradin
Chief Financial Officer4.1yrsno datano data
Dardo Ariel Damiano
Director of Operations & Industrial Director11.9yrsno datano data
Gastón Pinnel
Investor Relations Manager0yrsno datano data
Lucrecia Loureiro
Legal Affairs Manager2.6yrsno datano data
Damian Ariel Caniglia
Head of Human Resources3.3yrsno datano data

3.3yrs

Average Tenure

45yo

Average Age

Experienced Management: LOMA's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sergio Damián Faifman
VP of Board & CEO3.3yrsno datano data
Paulo Sergio de Oliveira Diniz
Director2.6yrsno datano data
Diana Elena Mondino
Independent Director2.6yrsno datano data
Carlos A. Boero Hughes
Independent Director2.6yrsno datano data
Luiz Augusto Klecz
Director0.8yrsno datano data
Sergio Daniel Alonso
Independent Director2.6yrsno datano data
Antonio Juan Lattuca
Member of Supervisory Committee2.1yrsno datano data
Franklin Feder
President of the Board1.8yrsno datano data
Flávio Mendes Aidar
Director0.8yrsno datano data
César Javier Graña
Independent Director0.8yrsno datano data

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: LOMA's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

Loma Negra Compañía Industrial Argentina Sociedad Anónima's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Loma Negra Compañía Industrial Argentina Sociedad Anónima
  • Ticker: LOMA
  • Exchange: NYSE
  • Founded: 1926
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: US$759.338m
  • Shares outstanding: 119.21m
  • Website: https://www.lomanegra.com

Number of Employees


Location

  • Loma Negra Compañía Industrial Argentina Sociedad Anónima
  • No. 355, Boulevard Cecilia Grierson
  • 4th Floor
  • Buenos Aires
  • Buenos Aires
  • 1107
  • Argentina

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOMABASE (Buenos Aires Stock Exchange)Ordinary SharesARARSNov 2017
LOMANYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDNov 2017

Biography

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and markets cement and its by-products in Argentina and Paraguay. It operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. The company offers masonry cement, aggregate, ready-mix concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. It also provides railroad cargo transport services; and treats and recycles industrial waste for use as fuel or raw materials. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima operates as a subsidiary of Caue Austria Holding GMBH. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:49
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.