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Cementos Argos SA (CMTOY)
OTHER OTC:CMTOY
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Cementos Argos SA
(OTC:CMTOY)
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Rating:65Neutral
Price Target:
$13.50
▲(0.30% Upside)
Cementos Argos SA's overall score is driven by strong strategic initiatives and shareholder returns highlighted in the earnings call. However, the high P/E ratio suggests overvaluation, and technical indicators point to a bearish trend. Financial performance is stable but with room for improvement in profitability and cash flow.
Cementos Argos SA (CMTOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.51B
Dividend Yield18.56%
Average Volume (3M)1.69K
Price to Earnings (P/E)78.5
Beta (1Y)0.16
Revenue Growth-43.34%
EPS Growth-18.99%
CountryUS
Employees4,235
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.28
Shares Outstanding260,374,240
10 Day Avg. Volume3,332
30 Day Avg. Volume1,686
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.50Price Target Upside0.30% Upside
Rating ConsensusHold
Number of Analyst Covering1
Cementos Argos SA Business Overview & Revenue Model
Company DescriptionCementos Argos SA is a leading Colombian company specializing in the production and distribution of cement, concrete, and aggregates. Operating primarily in the construction and building materials sector, Cementos Argos serves both domestic and international markets, with a strong presence in the Americas. The company is committed to sustainability and innovation, offering a range of products tailored to meet the diverse needs of its customers in residential, commercial, and infrastructure projects.
How the Company Makes MoneyCementos Argos generates revenue primarily through the sale of cement, ready-mix concrete, and aggregates. The company operates numerous production facilities and distribution centers, allowing it to serve a broad customer base. Key revenue streams include direct sales to construction companies, contractors, and retail consumers. Additionally, Cementos Argos benefits from strategic partnerships with other construction firms and government contracts for large infrastructure projects. The company's focus on operational efficiency, cost management, and sustainable practices also enhances profitability, while its expansion into new markets contributes to revenue growth.
Cementos Argos SA Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment due to significant strategic advancements and strong financial performance, despite some challenges in specific markets such as Colombia and Central America. The strategic initiatives, especially the spinoff and reentry into the U.S. market, and robust shareholder returns, provide a strong foundation for future growth.Q2-2025 Updates
Positive Updates
Strategic Portfolio Spinoff
Completed the spinoff of Cementos Argos portfolio in Grupo SURA, becoming a pure player in the heavy business materials industry, with a dividend yield of 18% compared to the industry average of 2%.
U.S. Market Reentry
Acquired a 60% stake in a major aggregate asset in the Caribbean with significant reserves and access to a deepwater port, aiming for $100 million to $150 million additional EBITDA by 2030.
FTSE4Good Index Inclusion
Selected again to be part of the FTSE4Good Index, reflecting strong ESG practices aligned with global standards.
Strong Shareholder Returns
Achieved a total shareholder return of 480% in USD and 380% in Colombian pesos, with a consolidated dividend yield of 18% for 2025.
Improved Financial Performance
Reached a 23% EBITDA margin, an expansion of 225 basis points compared to 2024, despite a challenging construction environment.
Solid Cash Flow and Debt Management
Net debt-to-EBITDA ratio at minus 7x for the second quarter, reflecting a strong cash position.
Negative Updates
Decreased Volumes in Colombia
Revenues in Colombia decreased by 9.5% compared to 2024, mainly due to lower volumes in cement, ready-mix, and aggregates.
Challenging Market Conditions in Central America
Suffered a decrease in regional cement volumes by 4.8% year-to-date, with a contracted market in Panama and lower dispatches in Honduras.
Lagging Panamanian Market
Panama experienced a decrease in demand of around 12%, impacting overall performance.
Operational Challenges in Cartagena
Higher-than-expected maintenance costs and nonrecurring expenses impacted operations in the Cartagena plant.
Company Guidance
In the second quarter of 2025, Cementos Argos highlighted several key financial and strategic milestones. The company achieved a total shareholder return of 480% in U.S. dollars and 380% in Colombian pesos following the Grupo SURA portfolio distribution, and it reached a consolidated EBITDA margin of 22%, with a goal to exceed 25% within two years. Cementos Argos reported revenues of COP 1.28 trillion and a net profit of COP 245 billion, representing a 19.1% margin. The company distributed COP 500 billion in dividends, with an 18% yield, and executed 68% of its COP 500 billion share buyback program. Additionally, Cementos Argos advanced its strategy to reenter the U.S. market by acquiring a 60% stake in a major Caribbean aggregate asset, aiming to generate $100-$150 million in additional EBITDA by 2030. The company also maintained a strong net debt-to-EBITDA ratio of minus 7x due to proceeds from a recent transaction.Cementos Argos SA Financial Statement Overview
Summary
Cementos Argos SA shows strong revenue growth and operational efficiency with healthy margins and a balanced debt profile. However, profitability and cash flow generation have room for improvement, as indicated by a low net profit margin and decreased free cash flow.Income Statement
Cementos Argos SA has demonstrated a strong revenue growth trajectory, with a notable increase in total revenue from 2022 to 2023 by 8.86%. The Gross Profit Margin for 2023 stands at 22.49%, indicating effective cost management. However, the Net Profit Margin for 2023 is relatively low at 2.52%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are robust at 12.89% and 20.76% respectively, indicating strong operational performance.78
Positive
Balance Sheet
The company has a moderate Debt-to-Equity Ratio of 0.87 in 2023, reflecting a balanced approach to leveraging. However, the Return on Equity (ROE) is modest at 3.83%, suggesting that the company is not yet fully optimizing its equity base. The Equity Ratio of 42.82% indicates a healthy proportion of equity financing relative to total assets, contributing to financial stability.65
Positive
Cash Flow
Cementos Argos SA shows a positive Free Cash Flow trend, with a Free Cash Flow to Net Income Ratio of 4.08 in 2023, highlighting strong cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is 6.75, demonstrating efficient cash flow management. However, the Free Cash Flow has decreased from the previous year, indicating challenges in maintaining cash flow growth.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.22T | 5.30T | 12.72T | 11.68T | 9.82T | 9.00T |
| Gross Profit | 1.31T | 1.33T | 2.86T | 2.06T | 1.91T | 1.63T |
| EBITDA | 731.79B | 722.90B | 2.64T | 2.15T | 2.14T | 1.60T |
| Net Income | 2.32T | 5.52T | 319.94B | 142.29B | 431.13B | 78.19B |
Balance Sheet | ||||||
| Total Assets | 22.06T | 19.94T | 19.51T | 23.27T | 19.57T | 18.57T |
| Cash, Cash Equivalents and Short-Term Investments | 12.33T | 1.07T | 1.01T | 1.26T | 483.39B | 612.01B |
| Total Debt | 3.38T | 3.90T | 7.27T | 8.21T | 7.01T | 7.51T |
| Total Liabilities | 7.59T | 6.00T | 10.44T | 11.20T | 9.36T | 9.86T |
| Stockholders Equity | 13.74T | 13.14T | 8.36T | 11.02T | 9.25T | 7.84T |
Cash Flow | ||||||
| Free Cash Flow | 191.23B | 565.91B | 1.30T | 701.98B | 904.44B | 1.12T |
| Operating Cash Flow | 344.04B | 867.83B | 2.16T | 1.42T | 1.36T | 1.44T |
| Investing Cash Flow | 12.48T | 445.81B | -128.93B | -735.05B | 329.95B | -158.01B |
| Financing Cash Flow | -1.19T | -2.33T | -1.65T | -476.37B | -1.86T | -1.04T |
Cementos Argos SA Technical Analysis
Positive
13.46
Price Trends
11.57
Positive
11.28
Positive
10.72
Positive
Market Momentum
0.73
Negative
64.62
Neutral
49.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMTOY, the sentiment is Positive. The current price of 13.46 is above the 20-day moving average (MA) of 12.15, above the 50-day MA of 11.57, and above the 200-day MA of 10.72, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 49.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMTOY.
Cementos Argos SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $625.93M | 10.39 | 16.39% | 7.21% | 3.95% | 27.28% | |
76 Outperform | $2.71B | ― | 22.14% | 0.54% | ― | ― | |
76 Outperform | $7.54B | 17.11 | 30.36% | 0.43% | 0.88% | -4.17% | |
73 Outperform | $13.66B | 8.77 | 7.71% | 0.96% | -9.62% | 795.20% | |
65 Neutral | $3.51B | 78.51 | 1.41% | 18.56% | -43.34% | -18.99% | |
58 Neutral | $1.00B | 13.60 | 6.97% | ― | -33.46% | -32.34% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
CMTOY
Cementos Argos SA
13.46
6.11
83.13%
CPAC
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6.95
1.64
30.89%
CX
Cemex SAB
9.00
2.98
49.50%
EXP
Eagle Materials
232.26
-54.12
-18.90%
LOMA
Loma Negra Compania Industrial Argentina Sociedad Anonima
7.62
-0.44
-5.46%
TTAM
Titan America SA
14.68
-1.64
-10.05%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.