Holcim (HOLN) AI Stock Analysis

• Market Cap: CHF42.85B
• Dividend Yield: 2.03%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.80
• Revenue Growth: -19.77%
• EPS Growth: 421.53%
• Country: CH
• Employees: 62,391
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 1.64
• Shares Outstanding: 566,875,500
• 10 Day Avg. Volume: 984,453
• 30 Day Avg. Volume: 1,185,202
• PEG Ratio: -6.88
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 12.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF79.52
• Price Target Upside: -1.83% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: CHF83.00 ▲(2.47% Upside)

Holcim's overall stock score is driven by strong technical indicators and an attractive valuation, despite mixed financial performance. The stock's upward momentum and low P/E ratio are significant positives, while concerns about revenue and cash flow growth weigh on the score.

Holcim Business Overview & Revenue Model

Company Description

Holcim Ltd, together with its subsidiaries, operates as a building materials and solutions company in the Asia Pacific, Europe, Latin America, the Middle East, Africa, and North America. It operates through four segments: Cement, Aggregates, Ready-mix Concrete, and Solutions & Products. The company offers cement, hydraulic binders, clinker, and other cementitious materials; aggregates, such as crushed stone, gravel, and sand; and ready-mix concrete, precast concrete products, asphalts, and mortars. In addition, it engages in the provision of contracting and other services; and retail activities, as well as waste management services. Its products are used in infrastructure projects, such as roads, mines, ports, dams, data centers, stadiums, wind farms, and electric power plants; building projects comprising individual housing, collective housing, office buildings, industrial and commercial buildings, and public buildings; and affordable housing. The company was formerly known as LafargeHolcim Ltd and changed its name to Holcim Ltd in May 2021. Holcim Ltd was founded in 1833 and is headquartered in Zug, Switzerland.

How the Company Makes Money

Holcim generates revenue primarily through the sale of its core products, including cement, aggregates, and ready-mix concrete, which are essential materials in construction projects. The company operates a vertically integrated business model, controlling the supply chain from raw material extraction to product delivery. Key revenue streams include the sale of cement and aggregates, which constitute a significant portion of its sales. Additionally, Holcim benefits from long-term supply contracts and partnerships with construction firms and contractors, ensuring consistent demand for its products. The company's focus on sustainability and innovative building solutions also opens up new revenue opportunities through eco-friendly products and services that align with global trends in construction and infrastructure development.

Holcim Financial Statement Overview

Summary

Holcim demonstrates a mixed financial performance. Profitability margins are strong, with a solid gross profit margin of 42.85% and a net profit margin of 9.49%. However, the decline in revenue growth rate by 10.32% and negative free cash flow growth rate of -4.45% are concerning. The balance sheet is stable with moderate leverage, but the return on equity has decreased.

Income Statement

Holcim's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 10.32%, which is concerning. However, the company maintains a solid gross profit margin of 42.85% and a net profit margin of 9.49%, showcasing its ability to control costs and generate profits. The EBIT and EBITDA margins are also healthy at 14.98% and 21.20%, respectively, indicating operational efficiency. Despite the revenue decline, profitability metrics remain robust.

Balance Sheet

Holcim's balance sheet reflects a stable financial position. The debt-to-equity ratio stands at 0.47, indicating a moderate level of leverage, which is manageable. The return on equity (ROE) is 4.57% in the TTM, showing a decrease from previous years, which suggests a need for improvement in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears strong relative to its total assets.

Cash Flow

The cash flow statement reveals some challenges. The free cash flow growth rate is negative at -4.45% in the TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is low at 0.10, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is 19.54%, which is reasonable, showing some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.46B	26.41B	27.01B	29.19B	26.83B	23.14B
Gross Profit	9.53B	11.68B	11.50B	11.61B	11.54B	9.69B
EBITDA	4.97B	5.97B	6.45B	6.98B	6.04B	5.14B
Net Income	15.42B	2.93B	3.06B	3.31B	2.30B	1.70B
Balance Sheet
Total Assets	33.01B	54.28B	52.69B	57.60B	59.88B	53.22B
Cash, Cash Equivalents and Short-Term Investments	4.24B	5.35B	6.09B	9.83B	6.69B	5.19B
Total Debt	9.81B	12.92B	13.12B	14.91B	16.61B	13.76B
Total Liabilities	17.69B	26.33B	25.90B	27.99B	29.41B	24.60B
Stockholders Equity	14.64B	27.24B	26.00B	28.67B	27.68B	26.07B
Cash Flow
Free Cash Flow	3.67B	4.02B	3.96B	3.01B	3.51B	3.50B
Operating Cash Flow	5.01B	5.67B	5.47B	4.56B	5.04B	4.62B
Investing Cash Flow	-2.96B	-2.04B	-3.47B	2.08B	-4.71B	-1.23B
Financing Cash Flow	-622.00M	-4.37B	-5.22B	-3.25B	1.11B	-1.89B

Holcim Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:HOLN, the sentiment is Positive. The current price of 81 is above the 20-day moving average (MA) of 78.96, above the 50-day MA of 76.54, and above the 200-day MA of 64.32, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 80.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:HOLN.

Holcim Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLN	73 Outperform	CHF42.85B	2.85	12.79%	2.03%	-19.77%	421.53%
SIKA	72 Outperform	CHF23.80B	19.45	―	2.23%	-1.05%	-1.46%
EMSN	66 Neutral	CHF14.06B	30.44	22.08%	3.16%	-4.25%	-0.03%
CLN	62 Neutral	$2.35B	20.76	5.38%	5.97%	-2.40%	38.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Holcim Corporate Events

Holcim Buys French Precast Specialist Alkern to Boost High-Value Building Solutions

Holcim has completed the acquisition of Alkern, a leading French manufacturer of precast concrete elements with estimated 2025 net sales of around EUR 250 million, expanding its presence in high-value building solutions for infrastructure, industrial facilities and buildings in France and Belgium. The deal adds Alkern’s walling, flooring and water management systems to Holcim’s portfolio, supports the group’s NextGen Growth 2030 objective for its Building Solutions segment to reach 50% of group net sales by 2030, and is expected to be earnings and cash-flow accretive in the first year while delivering EUR 11 million of run-rate EBITDA synergies and higher returns on invested capital by year three.

The most recent analyst rating on (CH:HOLN) stock is a Buy with a CHF78.00 price target. To see the full list of analyst forecasts on Holcim stock, see the CH:HOLN Stock Forecast page.

Holcim Expands in Latin America with Cementos Pacasmayo Acquisition

Holcim is acquiring a majority stake in Cementos Pacasmayo, a prominent Peruvian building materials producer, to strengthen its presence in Latin America and accelerate growth in line with its NextGen Growth 2030 strategy. The acquisition, valued at approximately USD 1.5 billion, is expected to enhance Holcim’s earnings and cash flow from the first year and achieve significant synergies by the third year, marking a strategic expansion in a profitable region.

The most recent analyst rating on (CH:HOLN) stock is a Hold with a CHF80.00 price target. To see the full list of analyst forecasts on Holcim stock, see the CH:HOLN Stock Forecast page.

Holcim Earns Top CDP Rankings for Climate and Water Leadership

Holcim has been recognized with ‘A’ rankings by CDP for its leadership in climate and water security, marking its fifth time on the CDP Climate A-List. This achievement underscores Holcim’s commitment to sustainability as part of its NextGen Growth 2030 strategy, including its validated CO2 reduction targets and new freshwater withdrawal targets. The recognition highlights Holcim’s role as an industry leader in environmental transparency and its dedication to a nature-positive future.

The most recent analyst rating on (CH:HOLN) stock is a Hold with a CHF80.00 price target. To see the full list of analyst forecasts on Holcim stock, see the CH:HOLN Stock Forecast page.

Holcim Earns Global Top Employer Certification for 2025

Holcim has been recognized as a Global Top Employer for 2025 by the Top Employers Institute, one of only 18 companies worldwide to earn this certification. This accolade highlights Holcim’s commitment to excellence in people practices, aligning with its NextGen Growth 2030 strategy, and underscores its dedication to nurturing talent and fostering a diverse and safe workplace environment.

The most recent analyst rating on (CH:HOLN) stock is a Hold with a CHF82.90 price target. To see the full list of analyst forecasts on Holcim stock, see the CH:HOLN Stock Forecast page.

Holcim Expands Circular Construction Footprint with Key European Acquisitions

Holcim has announced three strategic acquisitions in the UK, Germany, and France to enhance its circular construction capabilities. These acquisitions, including Thames Materials and A&S Recycling GmbH, expand Holcim’s recycling capacity to 1.3 million tons annually, supporting its goal to recycle over 20 million tons of construction demolition materials by 2030. This move strengthens Holcim’s leadership in circular construction and increases its footprint in key European regions, aligning with its NextGen Growth 2030 target.

The most recent analyst rating on (CH:HOLN) stock is a Buy with a CHF83.00 price target. To see the full list of analyst forecasts on Holcim stock, see the CH:HOLN Stock Forecast page.

Holcim Secures EU Funding for Pioneering CCS Project in Romania

Holcim has secured EU funding for its Carbon Hub CPT 01 project in Campulung, Romania, marking Eastern Europe’s first large-scale onshore carbon capture and storage (CCS) initiative. This project aims to produce 2 million tons of near-zero cement annually from 2032, aligning with the EU’s Clean Industrial Deal and Holcim’s NextGen Growth 2030 strategy. The initiative, supported by an industrial consortium including Carmeuse, will leverage proven CCS technology to advance sustainable innovation and create high-quality jobs in Romania. Holcim now leads the industry with eight EU-supported carbon capture projects across Europe, enhancing its position in the sustainable construction sector.

The most recent analyst rating on (CH:HOLN) stock is a Buy with a CHF77.50 price target. To see the full list of analyst forecasts on Holcim stock, see the CH:HOLN Stock Forecast page.