Cemex SAB (CX) AI Stock Analysis

• Market Cap: $7.72B
• Dividend Yield: 1.61%
• Average Volume (3M): 13.04M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.38
• Revenue Growth: -5.07%
• EPS Growth: 417.07%
• Country: US
• Employees: 44,494
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Construction Materials
• EPS (TTM): 0.64
• Shares Outstanding: 1,449,087,000
• 10 Day Avg. Volume: 17,102,069
• 30 Day Avg. Volume: 13,036,267
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.49
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.57
• Price Target Upside: 48.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Cemex SAB's overall stock score reflects stable financial performance with growth challenges, mixed technical indicators, and reasonable valuation. The earnings call provided optimism with strategic achievements but also highlighted ongoing challenges, leading to a slightly above-average score.

Positive Factors

Growth Outlook

Cemex's long-term growth outlook is supported by the US manufacturing revival, the US Infrastructure bill, and the Inflation Reduction Act.

Strategic Focus

Recent asset sales and the strategic focus on the US, Mexico, and Europe are viewed as a net positive in the mid to long-term.

Valuation

Cemex is trading at a 20% discount to its 5-year average, indicating an attractive valuation.

Negative Factors

Adverse Weather Impact

Soft results can be mostly explained by adverse weather conditions in both the US and Mexico affecting volumes and causing some cost inefficiencies.

Political and Economic Challenges

Results are likely to be dragged by the political transition in Mexico, uncertainty following the US elections, the spike in mortgage rates, a slowing Mexican economy, and a weak MXN.

Volume Decline

Consolidated volumes are expected to decrease, dragged by Mexico and the US, with Europe potentially surprising to the upside.

Cemex SAB Business Overview & Revenue Model

Company Description

Cemex SAB de CV is a global building materials company based in Mexico, primarily engaged in the production, distribution, and sale of cement, ready-mix concrete, and aggregates. The company operates across various sectors, including residential, commercial, and infrastructure construction, with a strong presence in the Americas, Europe, the Middle East, Africa, and Asia. Cemex is known for its commitment to sustainable practices and innovation in building solutions.

How the Company Makes Money

Cemex makes money by manufacturing and distributing cement, ready-mix concrete, and aggregates, which are essential materials for construction projects worldwide. The company generates revenue through the sale of these products to a diverse customer base, including construction companies, developers, and government entities. Cemex's revenue model is supported by its extensive global network of production facilities and sales operations, allowing it to efficiently supply its products to various markets. Additionally, the company leverages strategic partnerships and joint ventures to enhance its market presence and access new opportunities. Factors such as infrastructure development, urbanization, and economic growth in the regions where Cemex operates significantly contribute to its earnings.

Cemex SAB Financial Statement Overview

Summary

Cemex SAB shows a stable financial foundation with challenges in revenue and profit growth. The balance sheet is solid, but cash flow growth is inconsistent, necessitating strategic focus on market expansion and cost efficiency.

Income Statement

Cemex SAB has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, implying cost management is effective. However, there has been a decline in both total revenue and net income in the most recent year, resulting in weaker revenue growth. The net profit margin has improved significantly from a low base, but the overall profitability remains a concern. The EBIT and EBITDA margins show a moderate position, indicating operational efficiency challenges.

Balance Sheet

The balance sheet of Cemex SAB reflects a fairly stable financial position with a reasonable equity ratio, suggesting a solid asset base supported by equity. The debt-to-equity ratio indicates moderate leverage, which is typical for the construction materials industry but necessitates careful management to avoid potential risks. Return on equity has seen improvement, showcasing the company's ability to generate profits from shareholders' investments.

Cash Flow

Cash flow analysis reveals challenges in sustaining free cash flow growth. Although operating cash flow remains robust in relation to net income, the free cash flow growth has been inconsistent, which could impact future investments and strategic initiatives. The company's ability to convert operating profits into cash flow is efficient, but maintaining a positive trajectory in free cash flow is crucial for long-term growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.20B	17.39B	15.58B	14.55B	12.97B
	Gross Profit
5.33B	5.86B	4.82B	4.67B	4.18B
	EBIT
1.82B	1.85B	1.09B	1.62B	-436.00M
	EBITDA
2.67B	3.26B	2.42B	2.68B	595.00M
	Net Income Common Stockholders
939.00M	182.00M	858.00M	753.00M	-1.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
864.00M	624.00M	495.00M	613.00M	950.00M
	Total Assets
27.30B	28.43B	27.49B	27.70B	28.07B
	Total Debt
7.36B	8.16B	8.82B	9.16B	11.19B
	Net Debt
6.49B	7.54B	8.33B	8.54B	10.23B
	Total Liabilities
14.82B	16.32B	16.58B	17.43B	19.12B
	Stockholders Equity
12.18B	11.05B	10.50B	9.83B	8.07B
Cash Flow		Free Cash Flow
894.00M	984.00M	415.00M	862.00M	987.00M
	Operating Cash Flow
1.89B	2.16B	1.48B	1.85B	1.58B
	Investing Cash Flow
-328.00M	-1.34B	-732.00M	-285.00M	88.00M
	Financing Cash Flow
-1.25B	-701.00M	-961.00M	-1.85B	-1.50B

Cemex SAB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CX, the sentiment is Negative. The current price of 5.11 is below the 20-day moving average (MA) of 5.84, below the 50-day MA of 6.11, and below the 200-day MA of 5.96, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 18.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CX.

Cemex SAB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAC	75 Outperform	$530.17M	9.37	16.44%	8.64%	1.12%	17.25%
LOMA	73 Outperform	$1.46B	7.99	24.53%	―	-42.74%	242.59%
EXP	72 Outperform	$7.23B	15.53	33.51%	0.46%	0.64%	-1.15%
JHX	72 Outperform	$8.90B	20.17	21.77%	―	1.26%	-17.38%
CX	66 Neutral	$7.72B	8.30	8.39%	1.61%	-5.07%	417.07%
MLM	63 Neutral	$28.04B	14.20	22.83%	0.68%	-3.56%	70.93%
Sector *	47 Neutral	$2.35B	-2.91	-21.55%	3.59%	4.17%	-28.20%