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Cementos Pacasmayo SAA
(NYSE:CPAC)
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Rating:70Outperform
Price Target:
$13.00
▲(8.79% Upside)
Action:Upgraded
Date:07/22/26
CPAC scores well mainly on solid core profitability and improving recent results, supported by a positive earnings call with strong growth, margin expansion, and continued deleveraging. The score is held back by balance sheet leverage and historically uneven cash-flow conversion, while technicals are supportive and valuation is reasonable mainly due to the high dividend yield despite a mid-range P/E.
Positive Factors
Strong margins and profitability
Sustained high gross and operating margins indicate durable pricing power and efficient cost control in a commodity-linked sector. Elevated EBITDA margins provide an earnings buffer during cycles, support internal funding of capex and dividends, and underpin a healthy return on equity profile.
Negative Factors
Meaningful balance-sheet leverage
Leverage above 1x limits runway for aggressive expansion and raises refinancing and interest-rate vulnerability in a cyclical industry. Elevated debt can constrain strategic flexibility, increase fixed financial costs, and amplify downside risk if construction demand softens or input costs spike.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong margins and profitability
Sustained high gross and operating margins indicate durable pricing power and efficient cost control in a commodity-linked sector. Elevated EBITDA margins provide an earnings buffer during cycles, support internal funding of capex and dividends, and underpin a healthy return on equity profile.
Read all positive factors
Cementos Pacasmayo SAA (CPAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend Yield5.15%
Average Volume (3M)145.42K
Price to Earnings (P/E)16.5
Beta (1Y)-0.02
Revenue Growth20.05%
EPS Growth7.67%
CountryUS
Employees1,698
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)2.50
Shares Outstanding84,773,690
10 Day Avg. Volume385,564
30 Day Avg. Volume145,418
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)2.52
Price to Sales (P/S)1.42
P/FCF Ratio12.34
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.00Price Target Upside8.79% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.73
Revenue Forecast (FY)$655.04M
Cementos Pacasmayo SAA Business Overview & Revenue Model
Company Description
Cementos Pacasmayo S.A.A. (CPAC) is a prominent Peruvian enterprise engaged in the manufacturing, distribution, and sale of cement and related building materials throughout Peru. Its operations are structured into three primary business units: Cem...
How the Company Makes Money
CPAC makes money primarily by selling cement and other construction-related products and services to customers in Peru. Its core revenue stream is the production and commercialization of cement, where it earns revenue per unit sold through distrib...
Cementos Pacasmayo SAA Earnings Call Summary
Earnings Call Date:Jul 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial story: robust volume growth, double-digit revenue increases, materially higher EBITDA and net income, margin expansion, disciplined cost control, improving leverage and clear sustainability and innovation milestones. Headwinds are manageable but notable: a small decline in cement gross margin due to input costs and maintenance, concentrated project-driven variability in the concrete segment (with some dependency on Yanacocha), higher year-to-date selling spend, and short-term risk from El Niño. Overall, positive execution and balance-sheet improvement outweigh the contained challenges.Positive Updates
Strong Volume and Revenue Growth
Total shipments rose 15.5% in Q2 and 13.6% for the first six months; Q2 revenue grew 15.4% to PEN 558.9 million and cumulative six-month revenue reached PEN 1,114.5 million, up 13.3% year-over-year.
Negative Updates
Cement Margin Pressure from Input Costs and Maintenance
Cement gross margin adjusted declined by 1.5 percentage points to 45.2% in Q2, pressured by higher coal prices and increased use of imported clinker during scheduled kiln maintenance.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Volume and Revenue Growth
Total shipments rose 15.5% in Q2 and 13.6% for the first six months; Q2 revenue grew 15.4% to PEN 558.9 million and cumulative six-month revenue reached PEN 1,114.5 million, up 13.3% year-over-year.
Read all positive updates
Company Guidance
Management guided to maintain sustaining CapEx of about PEN 100 million per year, continue deleveraging (net debt/EBITDA at 2.32), and to actively monitor and pursue potential cement price increases for the remainder of the year; they noted Yanacocha’s contribution through roughly Q3 but expect concrete margins to remain around 16% and foresee potential demand upside from the El Niño event around September and anticipated government-driven riverbank/Chavimochic activity in the next ~120 days. The company expects to defend current profitability levels — Q2 revenue PEN 558.9m (+15.4%), Q2 EBITDA PEN 174.8m (+34.3%, margin 31.3%), six‑month revenue PEN 1,114.5m (+13.3%), six‑month EBITDA PEN 352.7m (+33.1%, margin 31.6%), shipments +15.5% in Q2 (+13.6% YTD), Q2 net income PEN 77.2m (+61.5%), cement revenue Q2 PEN 469.5m (+19.5%, 86.3% of shipments) — driven by operational efficiencies and a shift to higher‑margin concrete solutions.Cementos Pacasmayo SAA Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
61
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.25B | 2.12B | 1.98B | 1.95B | 2.12B | 1.94B |
| Gross Profit | 899.34M | 806.87M | 728.53M | 689.45M | 652.03M | 559.43M |
| EBITDA | 570.54M | 518.83M | 553.41M | 490.83M | 477.71M | 431.45M |
| Net Income | 212.90M | 154.21M | 198.88M | 168.90M | 176.83M | 153.17M |
Balance Sheet | ||||||
| Total Assets | 3.21B | 3.10B | 3.25B | 3.30B | 3.38B | 3.19B |
| Cash, Cash Equivalents and Short-Term Investments | 199.46M | 53.57M | 72.96M | 90.50M | 168.94M | 272.49M |
| Total Debt | 1.39B | 1.43B | 1.51B | 1.59B | 1.60B | 1.55B |
| Total Liabilities | 1.85B | 1.91B | 2.03B | 2.11B | 2.18B | 2.00B |
| Stockholders Equity | 1.35B | 1.19B | 1.22B | 1.19B | 1.20B | 1.19B |
Cash Flow | ||||||
| Free Cash Flow | 379.68M | 243.00M | 256.82M | 123.02M | -66.68M | 76.02M |
| Operating Cash Flow | 482.42M | 339.94M | 321.14M | 412.32M | 111.82M | 170.56M |
| Investing Cash Flow | -100.76M | -108.82M | -76.61M | -289.44M | -176.19M | -91.82M |
| Financing Cash Flow | -262.34M | -249.24M | -261.34M | -115.44M | -121.48M | -130.09M |
Cementos Pacasmayo SAA Risk Analysis
Cementos Pacasmayo SAA disclosed 47 risk factors in its most recent earnings report. Cementos Pacasmayo SAA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We are incorporating artificial intelligence technologies into our processes. These technologies may present business, compliance, and reputational risks. Q4, 2023
2.
Evolving expectations and/or requirements for reporting on or implementing environmental, social and governance (ESG) programs could increase our costs, and failure to meet expectations or requirements could adversely affect our sales and results of operations. Q4, 2023
3.
Our operations are subject to physical challenges related to climate change. Q4, 2023
Cementos Pacasmayo SAA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.09B | 16.47 | 16.38% | 5.09% | 20.05% | 7.67% | |
70 Outperform | $32.42B | 12.88 | 23.11% | 0.59% | 0.06% | 125.23% | |
67 Neutral | $2.93B | 16.13 | 16.96% | 0.93% | 5.46% | 7.16% | |
65 Neutral | $17.96B | 35.99 | 3.67% | 0.82% | 9.40% | -67.61% | |
65 Neutral | $6.49B | 16.82 | 26.87% | 0.47% | 1.68% | -7.06% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | $1.45B | 53.91 | 3.73% | ― | -8.04% | -72.35% |
* Basic Materials Sector Average
CPAC
Cementos Pacasmayo SAA
11.80
5.93
101.02%
CX
Cemex SAB
11.82
3.49
41.96%
EXP
Eagle Materials
204.94
-14.47
-6.59%
MLM
Martin Marietta Materials
525.14
-49.64
-8.64%
LOMA
Loma Negra Compania Industrial Argentina Sociedad Anonima
11.48
-0.15
-1.29%
TTAM
Titan America SA
15.48
1.82
13.28%
Cementos Pacasmayo SAA Corporate Events
Cementos Pacasmayo Aligns Code of Conduct with Holcim Group Ethics
Jul 22, 2026
On July 21, 2026, Cementos Pacasmayo’s board of directors approved a comprehensive alignment of the company’s Code of Conduct with the Holcim Group Code of Ethics, formalizing the change as a material event reported to Peru’s sec...
Cementos Pacasmayo Files Unaudited Interim Results for First Half of 2026
Jul 21, 2026
On July 21, 2026, Cementos Pacasmayo S.A.A. filed a Form 6-K with the U.S. Securities and Exchange Commission, furnishing unaudited interim consolidated financial statements as of June 30, 2026 for the three- and six‑month periods then ended...
Cementos Pacasmayo Posts Strong 2Q 2026 Earnings on Cement Demand and Higher-Margin Concrete
Jul 21, 2026
On July 20, 2026, Cementos Pacasmayo reported strong consolidated results for the second quarter and first half of 2026, driven by robust demand for bagged cement and higher-margin concrete products. Second-quarter shipments of cement, concrete an...
Cementos Pacasmayo Details SMV Response on Holcim Tender Offer Oversight
Jul 17, 2026
On July 15 and 16, 2026, Cementos Pacasmayo S.A.A. informed Peru’s Superintendency of the Securities Market (SMV) and the U.S. Securities and Exchange Commission that it was submitting, as a material event, its formal response to SMV Officia...
Cementos Pacasmayo Details Holcim’s Planned Tender Offer Structure and Regulatory Requests
Jun 17, 2026
On June 17, 2026, Cementos Pacasmayo S.A.A. reported that Holcim Ltd., which indirectly acquired control of the company, has asked Peru’s securities regulator SMV for exemptions from certain tender offer rules so it can conduct a mandatory t...
Cementos Pacasmayo Details SMV-Initiated Review of Holcim Takeover Terms
May 27, 2026
On May 27, 2026, Cementos Pacasmayo filed a Form 6-K in the United States disclosing its response to a May 12, 2026 information request from Peru’s Securities Market Superintendence (SMV) concerning the valuation of its shares in connection ...
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.