Cementos Pacasmayo SAA (CPAC) AI Stock Analysis

• Market Cap: $962.79M
• Dividend Yield: 5.46%
• Average Volume (3M): 145.42K
• Price to Earnings (P/E): 21.4
• Beta (1Y): -0.09
• Revenue Growth: 9.24%
• EPS Growth: 24.01%
• Country: US
• Employees: 1,698
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.06
• Shares Outstanding: 84,773,690
• 10 Day Avg. Volume: 385,564
• 30 Day Avg. Volume: 145,418
• PEG Ratio: -0.79
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 12.34
• Enterprise Value/Market Cap: 4.56
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 5.45
• Enterprise Value/Ebitda: 9.65
• 1Y Price Target: $12.80
• Price Target Upside: 93.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.79
• Revenue Forecast (FY): $639.21M

• Rating: 64 Neutral
• Price Target: $11.50 ▲(73.72% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven mainly by mixed financial performance—solid operating margins and generally positive free cash flow, but pressured by leverage and recent margin/revenue softness. Technicals are supportive with an established uptrend and moderate momentum, while valuation is helped by the high dividend yield but offset by a mid-range P/E. Earnings call commentary is net positive on volumes and margins, though transaction costs and project-driven volatility remain key risks.

Positive Factors

Operating profitability

Record 2025 EBITDA and historically strong operating margins (~15–20%) reflect durable operational efficiency and pricing power in cement production. Sustained EBITDA supports reinvestment, maintenance of capacity and resilience to cyclical demand swings over the next several months.

Cash generation

Consistent positive free cash flow in recent years provides structural ability to fund capex, dividends and working capital needs without immediate equity raises. While FCF is volatile, recent coverage of ~71–80% of net income indicates meaningful cash conversion that supports financial durability over 2–6 months.

Strategic endorsement

A binding acquisition agreement with global cement leader Holcim represents a structural endorsement, potentially unlocking scale, procurement advantages, technical know‑how and capital access. If approved, ownership change could materially strengthen market position and long‑term competitiveness.

Negative Factors

Leverage

Elevated leverage limits financial flexibility and raises vulnerability to earnings shocks. With net debt/EBITDA ~2.8x and modest operating cash flow relative to total debt, the company has constrained capacity for rapid deleveraging, making it more sensitive to margin or volume setbacks over the medium term.

Revenue & margin volatility

Uneven revenue and compressing net margins show exposure to project timing and non‑operating costs. This volatility complicates forecasting and reduces certainty around sustainable earnings and cash generation, limiting the company’s ability to plan long‑term investments or consistent distributions in coming quarters.

Project execution risk

Project pauses and segment execution issues materially depress volumes and margins in construction products. Given these segments' contribution to revenue and margin mix, such execution risk can persist through project cycles, causing structural swings in segment profitability and near‑term cash flows.

Cementos Pacasmayo SAA Business Overview & Revenue Model

Company Description

Cementos Pacasmayo SAA (CPAC) is a leading Peruvian company in the cement and construction materials sector, primarily focused on the production and distribution of cement, concrete, and other building materials. Established in 1949, CPAC operates several cement plants and is recognized for its commitment to quality and sustainability. The company serves a diverse clientele, including construction companies, contractors, and retail customers across Peru.

How the Company Makes Money

Cementos Pacasmayo generates revenue primarily through the sale of cement and related construction materials. Its key revenue streams include the production of various types of cement, ready-mix concrete, and aggregates. The company benefits from a strong market position bolstered by its extensive distribution network and strategic partnerships with construction firms and suppliers. Additionally, CPAC's focus on innovation and sustainability, including the development of eco-friendly products, enhances its competitive advantage and attracts a growing customer base. The company's earnings are also supported by its ability to adapt to market demand and invest in capacity expansion to meet the needs of the booming construction sector in Peru.

Cementos Pacasmayo SAA Financial Statement Overview

Summary

Operating profitability is solid (EBIT margin ~15%–20%), and free cash flow has been positive recently, but results are uneven with revenue declines in 2023 and 2025 and net margin compression in 2025. Leverage is a key constraint (debt-to-equity ~1.2–1.34; net debt/EBITDA cited at 2.8x), limiting flexibility if earnings soften.

Income Statement

Profitability is solid with consistently healthy operating margins (EBIT margin ~15%–20% from 2021–2025) and improving gross margin versus earlier years. However, growth is uneven: revenue dipped in 2023 and again in 2025, and net profit margin fell notably in 2025 (about 7.3%) versus 2024 (about 10.1%), pointing to pressure below the operating line and/or higher non-operating costs.

Balance Sheet

The balance sheet shows moderate-to-elevated leverage, with debt consistently above equity (debt-to-equity roughly ~1.2–1.34 in 2021–2025). Returns on equity have been decent but have cooled recently (about 16.3% in 2024 down to about 12.2% in 2025). Strength is that equity has remained relatively stable, but the debt load limits flexibility if earnings soften further.

Cash Flow

Cash generation is positive and generally supportive, with free cash flow positive in most years (notably 2024–2025), but it is volatile (negative in 2022 and down ~15% in 2025). Free cash flow covered a meaningful portion of net income in 2024–2025 (roughly 71%–80%), though cash flow relative to outstanding debt is modest (operating cash flow to total debt around ~0.39–0.60 in 2023–2025), suggesting limited rapid deleveraging capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.00B	1.98B	1.95B	2.12B	1.94B
Gross Profit	738.74M	728.53M	689.45M	652.03M	559.43M
EBITDA	541.52M	553.40M	490.66M	477.71M	431.45M
Net Income	145.36M	198.88M	168.90M	176.83M	153.17M
Balance Sheet
Total Assets	3.10B	3.25B	3.30B	3.38B	3.19B
Cash, Cash Equivalents and Short-Term Investments	53.57M	72.96M	90.50M	168.94M	272.49M
Total Debt	1.43B	1.51B	1.59B	1.60B	1.55B
Total Liabilities	1.91B	2.03B	2.11B	2.18B	2.00B
Stockholders Equity	1.19B	1.22B	1.19B	1.20B	1.19B
Cash Flow
Free Cash Flow	243.00M	256.82M	123.02M	-66.68M	76.02M
Operating Cash Flow	339.94M	321.14M	412.32M	111.82M	170.56M
Investing Cash Flow	-108.82M	-76.61M	-289.44M	-176.19M	-91.82M
Financing Cash Flow	-249.24M	-261.34M	-115.44M	-121.48M	-130.09M

Cementos Pacasmayo SAA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.62
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPAC, the sentiment is Neutral. The current price of 6.62 is below the 20-day moving average (MA) of 10.78, below the 50-day MA of 10.50, and below the 200-day MA of 7.18, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 32.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CPAC.

Cementos Pacasmayo SAA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTAM	74 Outperform	$3.54B	19.53	―	0.94%	0.28%	-1.57%
MLM	72 Outperform	$42.03B	37.14	10.65%	0.51%	1.99%	-41.08%
CX	71 Outperform	$19.04B	18.91	3.14%	0.74%	-6.34%	210.97%
EXP	70 Outperform	$7.28B	17.55	28.77%	0.47%	1.50%	-4.44%
CPAC	64 Neutral	$962.79M	21.43	16.04%	5.46%	9.24%	24.01%
LOMA	63 Neutral	$1.33B	34.51	5.06%	―	-33.99%	-61.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Cementos Pacasmayo SAA Corporate Events

Cementos Pacasmayo Files IFRS-Audited 2025 Consolidated Results With U.S. Regulators

On February 13, 2026, Cementos Pacasmayo S.A.A. filed a Form 6-K in the United States announcing the publication of its audited consolidated financial statements for the years ended December 31, 2025 and 2024. The accompanying independent auditors’ report concludes that the group’s 2025 consolidated financial statements present fairly, in all material respects, its financial position and performance in accordance with IFRS, with no key audit matters identified and no material inconsistencies found with other information in the 2025 annual report, reinforcing confidence in its reporting and governance for investors and regulators.

The most recent analyst rating on (CPAC) stock is a Hold with a $12.80 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.

Cementos Pacasmayo Posts Record Underlying 2025 Results as Holcim Moves to Take Control

On December 16, 2025, Cementos Pacasmayo reached a key milestone when Holcim agreed to acquire Inversiones Aspi S.A., which controls 50.01% of the company, valuing Pacasmayo at S/5.1 billion, with closing subject to regulatory approvals expected in the first half of 2026. The deal underscores a strategic endorsement by a global cement leader, potentially reshaping Pacasmayo’s ownership structure and positioning while signaling confidence in Peru’s construction market.

For the fourth quarter and full year 2025, reported on February 12, 2026, Pacasmayo posted solid operating growth, with cement, concrete and precast volumes up 8.2% in 4Q25 and 7.2% for 2025, and revenues up 6.2% and 7.0%, respectively, versus the prior periods. Excluding one-off expenses linked to the Holcim transaction, EBITDA rose 11.4% in the quarter and 6.4% for the year to record levels, though these non-recurring costs dragged reported 4Q25 EBITDA and net income into sharp decline, resulting in a quarterly net loss despite stronger underlying margins and demand.

Management highlighted robust bagged cement demand and infrastructure activity in northern Peru, improved gross margins, and record employee engagement scores as evidence of a healthy underlying franchise. The combination of solid fundamentals, progress on decarbonization efforts and the incoming Holcim majority owner suggests potential for strategic support and scale benefits, but investors will be watching regulatory approval and the integration process closely.

The most recent analyst rating on (CPAC) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.

Cementos Pacasmayo Convenes 2026 Annual Shareholders’ Meeting to Decide Dividends, Board and ESG Priorities

Cementos Pacasmayo S.A.A. has called its Annual Mandatory Shareholders’ Meeting for March 24, 2026, with a second-call date of March 31, 2026, at its Lima headquarters. Shareholders of record up to 10 days before the meeting may participate, and proxy powers of attorney must be registered by the afternoon of March 23, 2026.

The agenda includes presenting 2025 financial and social management results, ratifying 2025 dividend distributions, deciding on profit allocation and future dividend delegation, and determining and electing the new Board of Directors. The meeting will also review ESG matters, including climate risk, emissions-reduction commitments, and gender equity initiatives, signaling continued attention to sustainability and corporate governance frameworks relevant to investors and regulators.

The most recent analyst rating on (CPAC) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.

Cementos Pacasmayo Announces Major Shareholder Agreement with Holcim

On December 16, 2025, Cementos Pacasmayo S.A.A. announced that its majority shareholder, Inversiones ASPI S.A., has entered into a Share Purchase Agreement with Holcim Ltd. for the sale of 99.99% of its shares. The transaction, valued at S/5,100 million, represents a high profitability opportunity for shareholders, offering a premium over the company’s current market capitalization. The deal is subject to regulatory approvals expected in the first half of 2026, including authorization from INDECOPI.

The most recent analyst rating on (CPAC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.

Cementos Pacasmayo Announces New General Counsel Appointment

Cementos Pacasmayo S.A.A. announced a change in its principal legal representative as part of a succession plan. On December 5, 2025, Mr. Javier Durand, who has served as General Counsel since 2008, stepped down, and Mrs. Gabriela Dañino, who joined the company in July 2025, assumed the role. Mrs. Dañino brings extensive legal experience from her work at prestigious law firms and will lead all legal functions at Cementos Pacasmayo. The company expressed gratitude for Mr. Durand’s contributions over his 30-year career with the Hochschild-Pacasmayo Group, highlighting his role in strengthening the company’s compliance culture and corporate reputation.

The most recent analyst rating on (CPAC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.

Cementos Pacasmayo S.A.A. Reports Strong Financial Position as of June 2025

Cementos Pacasmayo S.A.A. released its interim consolidated financial statements for the period ending June 30, 2025. The report highlights a financial position with total assets of S/3,228,413,000 and total liabilities of S/1,914,964,000, indicating a stable financial standing. The company’s equity increased to S/1,313,449,000, reflecting growth from the previous period. These financial results provide stakeholders with insights into the company’s operational efficiency and market positioning.

The most recent analyst rating on (CPAC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.

Cementos Pacasmayo Reports Strong Financial Performance for Q3 2025

Cementos Pacasmayo S.A.A. released its interim consolidated financial statements for the period ending September 30, 2025. The report highlights an increase in total assets to S/3,292,562,000 compared to S/3,166,043,000 as of December 31, 2024, and a rise in equity to S/1,384,796,000 from S/1,213,098,000. These financial results indicate a positive trend in the company’s financial health, which could enhance its market position and stakeholder confidence.

The most recent analyst rating on (CPAC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.