Cemex SAB (CX) AI Stock Analysis

• Market Cap: $12.04B
• Dividend Yield: 1.32%
• Average Volume (3M): 11.24M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.18
• Revenue Growth: -8.41%
• EPS Growth: 570.14%
• Country: US
• Employees: 43,800
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 0.20
• Shares Outstanding: 1,449,087,000
• 10 Day Avg. Volume: 10,533,409
• 30 Day Avg. Volume: 11,236,681
• PEG Ratio: 0.14
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.51
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.81
• Enterprise Value/Ebitda: 1.20
• 1Y Price Target: $7.74
• Price Target Upside: -2.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $7.50 ▼(-5.90%Downside)

Cemex SAB's overall score reflects a mix of stable financial performance, strong technical momentum, and attractive valuation. Financial stability is hampered by revenue challenges, while technical analysis shows potential for short-term gains despite overbought signals. Valuation suggests the stock is undervalued, providing investment appeal. The earnings call highlights strategic initiatives that could offset current operational hurdles.

Positive Factors

Cost Management

Cemex is targeting $350 million in savings over three years as part of cost reduction efforts.

Growth Outlook

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

Valuation

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

Negative Factors

Interest Rates

Cemex is facing potential challenges, including higher interest rates, US housing market issues, and fiscal challenges in Mexico.

Market Challenges

Cemex will face a very challenging quarter with a sharp decrease in cement volume in Mexico, down 12% year over year.

Overvaluation

Cemex 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 SAB de CV (CX) is a leading global building materials company headquartered in Monterrey, Mexico. It operates in the construction materials sector, specializing in the production, distribution, and sale of cement, ready-mix concrete, aggregates, and other related building materials. With a comprehensive network of operations spanning more than 50 countries, Cemex is committed to being the partner of choice for construction needs, contributing to the development of infrastructure and housing projects worldwide.

How the Company Makes Money

Cemex makes money primarily through the production and sale of cement, ready-mix concrete, and aggregates. These core products are essential components in construction and infrastructure development, which are in consistent demand across both developed and emerging markets. Cemex's revenue model includes direct sales to construction companies, government entities, and individual consumers. The company benefits from its vertically integrated operations which allow it to control the supply chain from raw material extraction to final product delivery, enhancing operational efficiency and cost-effectiveness. Additionally, Cemex engages in strategic partnerships and innovations to enhance its product offerings, improve sustainability, and expand market reach. The company's significant presence in diverse geographic markets also helps mitigate risks associated with local economic fluctuations, contributing to steady revenue streams.

Cemex SAB Financial Statement Overview

Summary

Cemex SAB's financial performance shows stability with a reasonable equity ratio and moderate leverage. Challenges include declining revenue and net income, inconsistent free cash flow growth, and moderate operational efficiency, indicating areas for strategic improvement.

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	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: Positive
• Last Price: 7.97
• 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 7.97 is above the 20-day moving average (MA) of 7.32, above the 50-day MA of 7.05, and above the 200-day MA of 6.10, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 74.26 is Negative, neither overbought nor oversold. The STOCH value of 92.45 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
CPAC	81 Outperform	$562.07M	9.36	16.29%	8.01%	3.95%	27.28%
EXP	77 Outperform	$7.23B	16.08	33.52%	0.56%	0.05%	0.96%
CX	72 Outperform	$12.04B	8.26	6.58%	1.32%	-8.41%	570.14%
MLM	69 Neutral	$34.42B	32.83	11.88%	0.68%	-0.54%	-48.61%
LOMA	67 Neutral	$1.33B	13.13	14.05%	―	-37.30%	32.91%
Sector *	59 Neutral	HK$17.46B	4.72	-5.52%	3.34%	-3.57%	-61.41%