Cementos Pacasmayo SAA (CPAC) AI Stock Analysis

• Market Cap: $897.85M
• Dividend Yield: 5.46%
• Average Volume (3M): 145.42K
• Price to Earnings (P/E): 20.6
• Beta (1Y): -0.02
• 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: 4.67
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 7.74
• 1Y Price Target: $12.90
• Price Target Upside: 36.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.62
• Revenue Forecast (FY): $638.60M

• Rating: 64 Neutral
• Price Target: $10.00 ▲(5.82% 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

Strong operating profitability

Record 2025 EBITDA demonstrates durable operating strength and cost leverage in core cement production. Sustained EBIT margins (~15–20%) imply the business converts volume and efficiency gains into lasting cash earnings, supporting reinvestment, dividends and resilience through construction cycles.

Positive cash generation

Consistent positive free cash flow in recent years shows the company can fund operations and capital needs from internal resources. FCF covering a meaningful share of net income (71%–80%) supports shareholder returns and debt servicing, underpinning financial durability despite cyclicality.

Strategic endorsement by Holcim

A binding acquisition agreement with Holcim signals validation of Pacasmayo’s market position and operations. Potential owner support can deliver scale, procurement and operational synergies, improved access to capital and stronger competitive positioning in Peru’s construction materials market over the medium term.

Negative Factors

Elevated leverage

Net debt/EBITDA near 2.8x denotes moderate‑to‑elevated leverage for a cyclical cement producer. This limits financial flexibility, raises refinancing and interest risks if volumes soften, and constrains rapid deleveraging or sizeable capital deployment without sustained cash generation or equity support.

Revenue and margin volatility

Uneven top‑line trends and segment margin swings (e.g., concrete/mortar -25% q/q; notable margin contraction) reflect dependence on project timing and specific public works. Such volatility undermines predictability of earnings, complicates capital planning and can amplify the impact of cyclical slowdowns.

Regulatory and closing uncertainty

Regulatory scrutiny from Peru’s SMV over transaction accounting introduces execution and disclosure risk. Potential reclassification or mandated adjustments, plus delayed approvals, could alter reported metrics, increase costs or postpone Holcim control benefits, creating prolonged strategic uncertainty.

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

CPAC makes money primarily by producing and selling cement and other construction materials to customers across the construction value chain. Its core revenue stream is the sale of cement (typically the largest driver for integrated cement producers), complemented by sales of related building materials and solutions used in concrete and construction applications. Revenue is generated through volume sold and pricing per product line, with demand linked to construction activity (housing, private construction, and public infrastructure). Earnings are influenced by operating efficiency in manufacturing (kiln and grinding operations), distribution/logistics to regional markets, and input costs (e.g., energy and fuels) that affect margins. Information on specific customer concentration, contract structures, or named strategic partnerships is null.

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: 9.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 9.45 is below the 20-day moving average (MA) of 10.39, below the 50-day MA of 10.61, and above the 200-day MA of 7.61, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 32.65 is Neutral, neither overbought nor oversold. The STOCH value of 8.79 is Positive, 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
MLM	72 Outperform	$33.82B	33.02	11.90%	0.51%	1.99%	-41.08%
EXP	70 Outperform	$5.44B	16.19	28.78%	0.47%	1.50%	-4.44%
CX	69 Neutral	$15.17B	1.73	10.45%	0.74%	-6.34%	210.97%
TTAM	69 Neutral	$2.62B	16.29	―	0.94%	0.28%	-1.57%
CPAC	64 Neutral	$897.85M	20.64	16.04%	5.46%	9.24%	24.01%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LOMA	49 Neutral	$1.25B	79.74	5.06%	―	-33.99%	-61.41%

Cementos Pacasmayo SAA Corporate Events

Cementos Pacasmayo Defends Holcim Deal Expenses in Response to SMV Scrutiny

On March 18, 2026, Cementos Pacasmayo filed a Form 6-K in the United States to disclose an official letter from Peru’s securities regulator, the SMV, concerning its accounting for expenses tied to a planned Holcim acquisition. The company informed regulators that it had responded to the SMV’s March 13, 2026 information request and communicated the response as a material fact, framing the exchange as part of an ongoing supervisory process.

In its March 17, 2026 correspondence to the SMV, the cement maker defended the treatment of “expenses associated with the Holcim acquisition” in its audited 2025 financial statements, insisting they contain truthful, complete information and fully comply with IFRS. It argued that the SMV is overstepping its supervisory mandate by pressuring for accounting reversals and imposing de facto new diligence standards, warning that premature disclosure demands and prejudgment could unsettle the market and potentially harm shareholders despite an observed rise in the share price since the transaction was announced.

The company reiterated that these transaction-related costs were recorded under the accrual principle following approvals by its governing bodies and backed by an unqualified audit opinion from independent auditors. It also highlighted expected strategic benefits from Holcim potentially becoming the controlling shareholder, citing synergies, stronger competitive positioning, scale efficiencies, and an improved risk profile as elements that support the economic rationale of assuming the transaction expenses in the interest of all shareholders.

The most recent analyst rating on (CPAC) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.

Cementos Pacasmayo Challenges SMV Orders Amid Holcim Control-Change Review

On March 19, 2026, Cementos Pacasmayo S.A.A. filed a Form 6-K in the United States detailing its response to Peruvian securities regulator SMV’s Official Letter No. 1004-2026-SMV/11.1, issued and notified on March 11, 2026. The company informed the SMV on March 17, 2026 that it had submitted a response brief as a material fact, addressing information requests tied to its audited 2025 financial statements and a pending change in control.

The filing recalls that on December 16, 2025 the market was informed that Holcim Ltd. agreed to acquire 99.99% of Inversiones ASPI S.A., which indirectly controls 50.01% of Cementos Pacasmayo. In its March 17 correspondence, the company challenges what it sees as an overreach of the SMV’s supervisory powers, particularly an instruction to reverse certain Holcim-related transaction expenses and reclassify them as a receivable, arguing such directives intrude on management’s business judgment and accounting decisions. This dispute underscores regulatory scrutiny around the Holcim transaction and could influence how Peruvian issuers balance disclosure obligations with autonomy over financial and strategic decisions.

The most recent analyst rating on (CPAC) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Cementos Pacasmayo SAA stock, see the CPAC Stock Forecast page.

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.