Cementos Pacasmayo SAA (CPAC) AI Stock Analysis

• Market Cap: $621.89M
• Dividend Yield: 7.45%
• Average Volume (3M): 4.63K
• Price to Earnings (P/E): 10.1
• Beta (1Y): -0.10
• Revenue Growth: 3.95%
• EPS Growth: 27.28%
• Country: US
• Employees: 1,698
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Construction Materials
• EPS (TTM): 0.15
• Shares Outstanding: 84,773,690
• 10 Day Avg. Volume: 5,898
• 30 Day Avg. Volume: 4,630
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 1.22
• Enterprise Value/Ebitda: 1.66
• 1Y Price Target: $7.00
• Price Target Upside: 4.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $7.00 ▲(4.01% Upside)

Cementos Pacasmayo SAA's overall stock score reflects its strong financial performance, attractive valuation, and positive earnings call insights. The company's efficient cash flow management and low leverage enhance its financial stability. The technical analysis supports a stable stock trend, while the high dividend yield and low P/E ratio indicate potential undervaluation. The earnings call further underscores the company's growth prospects and strategic focus on infrastructure projects.

Cementos Pacasmayo SAA Business Overview & Revenue Model

Company Description

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru. The company operates through three segments: Cement, Concrete and Precast; Quicklime; and Sales of Construction Supplies. It produces cement for various uses, such as residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products. The company also produces and distributes quicklime for use in steel, food, fishing, chemical, mining, agriculture, and other industries. In addition, it sells and distributes other construction materials manufactured by third parties, such as steel rebars, cables, and pipes. As of March 31, 2022, the company operated a network of 240 independent retailers and 379 hardware stores. It also sells its cement products directly to other retailers, private construction companies, and government entities. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. operates as a subsidiary of Inversiones ASPI S.A.

How the Company Makes Money

Cementos Pacasmayo generates revenue primarily through the sale of its cement products, which constitute the bulk of its income. The company has established a diversified revenue model that includes sales of ready-mix concrete and aggregates, catering to both residential and commercial construction markets. Key revenue streams come from direct sales to construction companies, contractors, and retailers. Additionally, CPAC benefits from strategic partnerships with construction firms and government projects, which provide a steady demand for its products. The company's ability to maintain competitive pricing and its focus on quality also contribute to its profitability, along with its efforts to expand production capacity and improve operational efficiency.

Cementos Pacasmayo SAA Financial Statement Overview

Summary

Cementos Pacasmayo SAA presents a strong financial profile with consistent profitability and efficient cash flow management. The income statement highlights stable margins with modest revenue growth, while the balance sheet reflects a conservative financial strategy with low leverage. The company's cash flow performance is particularly commendable, reflecting efficient cash generation and allocation. Continued focus on revenue growth and further liability reduction could enhance overall financial stability.

Income Statement

Cementos Pacasmayo SAA demonstrates a solid financial performance with strong gross and net profit margins in the TTM (Trailing-Twelve-Months). The gross profit margin is approximately 36.9% and the net profit margin stands at around 10.1%. The revenue growth rate from the previous annual period is about 1.1%, indicating stable revenue growth. EBIT and EBITDA margins are also healthy at 19.7% and 27.1%, respectively. The company shows consistent profitability, although revenue growth is modest.

Balance Sheet

The balance sheet of Cementos Pacasmayo SAA reflects a moderate financial position. The debt-to-equity ratio is low, indicating conservative leverage. The return on equity (ROE) is approximately 16.0%, showcasing efficient use of equity to generate profits. The equity ratio is around 39.7%, reflecting a balanced approach to financing with a good portion of assets funded by equity, but there is room for improvement in reducing liabilities.

Cash Flow

The company's cash flow demonstrates strong operational efficiency. The free cash flow growth rate is a substantial 19.1% from the previous annual period, indicating robust cash generation capabilities. The operating cash flow to net income ratio is approximately 1.96, reflecting solid cash earnings. The free cash flow to net income ratio is around 1.51, which is a positive indicator of cash flow strength relative to profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.98B	1.95B	2.12B	1.94B	1.30B
Gross Profit	728.53M	689.45M	652.03M	559.43M	375.29M
EBITDA	536.23M	490.66M	477.71M	453.82M	315.33M
Net Income	198.88M	168.90M	176.83M	153.17M	57.89M
Balance Sheet
Total Assets	3.17B	3.22B	3.31B	3.20B	3.02B
Cash, Cash Equivalents and Short-Term Investments	72.72M	90.19M	168.67M	273.40M	308.91M
Total Debt	1.50B	1.58B	4.36M	5.83M	1.21B
Total Liabilities	1.95B	2.03B	2.12B	2.01B	1.65B
Stockholders Equity	1.21B	1.19B	1.20B	1.20B	1.37B
Cash Flow
Free Cash Flow	256.82M	123.02M	-66.68M	76.02M	278.82M
Operating Cash Flow	321.14M	412.32M	111.82M	170.56M	331.37M
Investing Cash Flow	-76.61M	-289.44M	-176.19M	-91.82M	-48.42M
Financing Cash Flow	-261.34M	-115.44M	-121.48M	-130.09M	-43.85M

Cementos Pacasmayo SAA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPAC, the sentiment is Positive. The current price of 6.73 is above the 20-day moving average (MA) of 6.38, above the 50-day MA of 6.25, and above the 200-day MA of 5.85, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPAC.

Cementos Pacasmayo SAA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAC	78 Outperform	$621.89M	10.06	16.29%	7.45%	3.95%	27.28%
EXP	76 Outperform	$7.30B	16.57	31.87%	0.43%	0.88%	-4.17%
VMC	76 Outperform	$38.62B	40.27	11.89%	0.66%	0.19%	4.33%
MLM	76 Outperform	$37.33B	33.86	12.10%	0.52%	1.02%	-45.31%
CX	75 Outperform	$14.01B	8.92	7.12%	0.91%	-9.62%	795.20%
Sector *	62 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
LOMA	58 Neutral	$1.10B	16.33	8.93%	―	-33.46%	-32.34%