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Cemex Sab De Cv (CX)
:CX
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Cemex SAB
(NYSE:CX)
Select Model
Select Model
Rating:73Outperform
Price Target:
$10.50
▲(16.67% 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
Operational Efficiency
Improved operational efficiency through reduced energy costs enhances profitability and competitiveness, supporting long-term financial health.
EBITDA Savings
Increased EBITDA savings through strategic initiatives like Project Cutting Edge strengthens financial resilience and supports future growth.
Debt Management
Effective debt management reduces interest expenses, enhancing free cash flow and financial flexibility, crucial for long-term stability.
Negative Factors
Revenue Decline
Declining revenue and net income indicate challenges in market demand and pricing power, potentially impacting long-term growth prospects.
Volume Declines
Volume declines in key markets like Mexico and the U.S. suggest demand challenges, which could hinder revenue growth and market share.
Free Cash Flow Growth
Inconsistent free cash flow growth limits the ability to fund strategic initiatives and investments, affecting long-term expansion plans.
Cemex SAB (CX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.64B
Dividend Yield0.96%
Average Volume (3M)10.59M
Price to Earnings (P/E)8.7
Beta (1Y)1.18
Revenue Growth-9.62%
EPS Growth795.20%
CountryUS
Employees43,800
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.20
Shares Outstanding1,449,087,000
10 Day Avg. Volume9,016,492
30 Day Avg. Volume10,585,880
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit2.49
Enterprise Value/Ebitda6.53
Forecast
1Y Price Target
$9.84Price Target Upside9.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Cemex SAB Business Overview & Revenue Model
Company DescriptionCEMEX, 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 MoneyCemex 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 Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in cost savings and regional performance, particularly in EMEA. However, challenges remain in terms of volume declines and market conditions in key regions like Mexico and the U.S. The strategic initiatives and operational efficiencies are promising, but market uncertainties pose ongoing challenges.Q2-2025 Updates
Positive Updates
EBITDA Savings Increase
CEMEX increased its expected EBITDA savings for the year to $200 million, up from $150 million, and anticipates a run rate of $400 million by 2027 due to Project Cutting Edge.
Strong EMEA Performance
The EMEA region achieved the highest first half EBITDA in recent history with a margin expansion of almost 3 percentage points, supported by volume recovery and operating leverage.
Net Income Growth
Net income for the quarter increased by 38% due to strong FX rates and lower interest expenses.
Operational Efficiency Improvements
Energy costs per ton of cement declined by 14%, contributing positively to overall cost improvements.
Successful Debt Management
CEMEX replaced $1 billion subordinated perpetual notes with new notes at a lower spread, enhancing free cash flow by reducing the coupon rate.
Negative Updates
Volume Declines in Key Markets
Weaker volumes in Mexico and the U.S. were partially offset by recovery in EMEA. The U.S. saw declines due to high precipitation and weakness in the residential sector.
Challenging Market Conditions in Mexico
Second quarter results in Mexico were challenged by difficult prior year comparisons and high national precipitation levels.
Currency Volatility
The Mexican peso presented a relevant headwind, which was only partially offset by the appreciation of other currencies in the portfolio.
Company Guidance
During the CEMEX Second Quarter 2025 Conference Call, the company outlined key strategic initiatives and financial metrics. The guidance focused on achieving operational excellence and enhancing shareholder returns. CEMEX reported that its Project Cutting Edge program is expected to generate EBITDA savings of $200 million for the year, up from an initial $150 million, with a projected run rate of $400 million by 2027. The company anticipates a slight sequential volume improvement in Mexico and expects volumes in the U.S. to be driven by infrastructure projects, despite weather-related challenges. Consolidated EBITDA for the second quarter outperformed internal expectations, with a noted improvement in free cash flow conversion. CEMEX also highlighted a new capital allocation model that prioritizes shareholder returns, with potential plans for dividends and share buybacks. The company remains optimistic about the back half of the year, projecting consolidated EBITDA to be flat versus 2024, with upside potential subject to market conditions.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.65
Positive
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.70
Positive
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.60
Neutral
| 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
Positive
9.00
Price Trends
8.79
Positive
7.85
Positive
6.84
Positive
Market Momentum
0.09
Positive
48.15
Neutral
14.51
Positive
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 is below the 20-day moving average (MA) of 9.25, above the 50-day MA of 8.79, and above the 200-day MA of 6.84, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 14.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CX.
Cemex SAB Risk Analysis
Cemex SAB disclosed 40 risk factors in its most recent earnings report. Cemex SAB reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The failure of any bank in which we deposit our funds could have an adverse effect on our financial condition. Q4, 2022
2.
We are subject to restrictions and reputational risks resulting from non-controlling interests held by third parties in our consolidated subsidiaries. As of the date of this annual report, we control three publicly listed companies, where this risk is heightened. Q4, 2022
3.
We may fail to secure certain materials required to run our business, which could have a material adverse effect on our business, financial condition, liquidity and results of operations. Q4, 2022
Cemex SAB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | 76.46B | 23.36 | 15.46% | 1.28% | 3.85% | -0.93% | |
76 Outperform | 7.54B | 16.79 | 30.36% | 0.43% | 0.88% | -4.17% | |
76 Outperform | 39.54B | 41.20 | 11.31% | 0.64% | 0.19% | 4.33% | |
76 Outperform | 37.01B | 33.69 | 11.76% | 0.52% | 1.02% | -45.31% | |
73 Outperform | $13.64B | 8.75 | 7.12% | 0.96% | -9.62% | 795.20% | |
58 Neutral | 1.00B | 13.60 | 6.97% | ― | -33.46% | -32.34% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
CX
Cemex SAB
9.00
2.98
49.50%
EXP
Eagle Materials
232.26
-54.12
-18.90%
MLM
Martin Marietta Materials
613.74
78.57
14.68%
VMC
Vulcan Materials
299.29
50.70
20.40%
GB:CRH
CRH plc
8,360.00
1,639.81
24.40%
LOMA
Loma Negra Compania Industrial Argentina Sociedad Anonima
7.62
-0.44
-5.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.