Cemex SAB (CX) AI Stock Analysis

• Market Cap: $14.01B
• Dividend Yield: 0.9%
• Average Volume (3M): 13.31M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.22
• Revenue Growth: -9.62%
• EPS Growth: 795.20%
• Country: US
• Employees: 43,800
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Construction Materials
• EPS (TTM): 0.20
• Shares Outstanding: 1,449,087,000
• 10 Day Avg. Volume: 12,344,757
• 30 Day Avg. Volume: 13,308,760
• 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: 0.89
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 6.53
• 1Y Price Target: $9.84
• Price Target Upside: 4.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: $10.50 ▲(11.70% Upside)

Cemex SAB's stock score is driven by strong technical momentum and attractive valuation, supported by strategic initiatives and operational efficiencies. However, financial performance concerns and market challenges in key regions temper the outlook.

Positive Factors

Investment Grade Status

Cemex is now investment-grade, which should attract investors who have been out of the name for years.

Leadership and Strategic Initiatives

The new CEO's leadership is resulting in significant and transformational changes, with an urgency that suggests a faster pace of implementation.

Market Outlook

The outlook for Cemex's largest markets, Mexico and the US, is improving, supporting a positive view of the company's future performance.

Negative Factors

Market Performance Challenges

United States cement volumes are down 4% year-over-year, with housing starts, permits, and construction spending still muted or down.

Regional Underperformance

The fiscal year 2025 has been challenging for Cemex, primarily impacted by underperformance in the US and Mexico.

Valuation Concerns

CX is trading at 6.3x forward EBITDA, which is 10% above the 5-year average, indicating potential overvaluation.

Cemex SAB Business Overview & Revenue Model

Company Description

CEMEX, S.A.B. de C.V., together with its subsidiaries, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, urbanization solutions, and other construction materials worldwide. The company also offers various complementary construction products, including asphalt products; concrete blocks; roof tiles; architectural products; concrete pipes for storm and sanitary sewers applications; and other precast products, such as rail products, concrete floors, box culverts, bridges, drainage basins, barriers, and parking curbs. In addition, it provides building solutions for housing solutions, pavement solutions, and green building services; cement trade maritime services; and information technology solutions. The company operates approximately 2,000 retail stores. CEMEX, S.A.B. de C.V. was founded in 1906 and is headquartered in San Pedro Garza García, Mexico.

How the Company Makes Money

Cemex generates revenue primarily through the sale of cement, ready-mix concrete, and aggregates. The company's revenue model is built on a combination of direct sales to construction companies and infrastructure projects, as well as partnerships with local distributors and retailers. Key revenue streams include bulk cement sales, which are typically sold to large construction projects, and ready-mix concrete deliveries, which cater to both residential and commercial construction needs. Additionally, Cemex benefits from strategic partnerships with various stakeholders in the construction industry, allowing them to secure long-term contracts and enhance their market presence. The company's focus on sustainability and innovation also attracts customers seeking environmentally friendly construction solutions, further contributing to its earnings.

Cemex SAB Financial Statement Overview

Summary

Cemex SAB exhibits a stable financial foundation with challenges in revenue and profit growth. The balance sheet is solid, but leverage needs careful management. Cash flow metrics show resilience but highlight the importance of enhancing free cash flow growth for future investments.

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	5.44B	5.86B	4.82B	4.67B	4.18B
EBITDA	2.67B	3.26B	2.42B	2.68B	595.00M
Net Income	939.00M	182.00M	858.00M	753.00M	-1.47B
Balance Sheet
Total Assets	27.30B	28.43B	27.49B	27.70B	28.07B
Cash, Cash Equivalents and Short-Term Investments	864.00M	624.00M	495.00M	613.00M	950.00M
Total Debt	7.36B	8.16B	8.82B	9.16B	11.19B
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	598.00M	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: Positive
• Last Price: 9.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CX, the sentiment is Positive. The current price of 9.4 is above the 20-day moving average (MA) of 8.86, above the 50-day MA of 8.19, and above the 200-day MA of 6.57, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 78.74 is Negative, neither overbought nor oversold. The STOCH value of 91.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CX.

Cemex SAB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXP	76 Outperform	$7.55B	17.14	31.87%	0.41%	0.88%	-4.17%
VMC	76 Outperform	$38.62B	40.86	11.89%	0.65%	0.19%	4.33%
MLM	76 Outperform	$37.33B	34.29	12.10%	0.51%	1.02%	-45.31%
CX	73 Outperform	$14.01B	8.99	7.12%	0.90%	-9.62%	795.20%
Sector *	62 Neutral	$10.36B	6.35	0.76%	2.84%	3.10%	-36.03%
CRH	―	£55.95B	22.58	15.22%	1.37%	―	―
LOMA	58 Neutral	$1.10B	16.06	8.93%	―	-33.46%	-32.34%