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Cemex SAB (CX)
NYSE:CX
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Cemex SAB (CX) AI Stock Analysis

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CX

Cemex SAB

(NYSE:CX)

Rating:72Outperform
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 (CX) vs. SPDR S&P 500 ETF (SPY)

Cemex SAB Business Overview & Revenue Model

Company DescriptionCemex 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 MoneyCemex 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 Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, particularly in cost reductions, pricing strategies, and regional performance in EMEA. However, challenges such as volume declines in Mexico and the U.S., as well as currency impacts, were noted. Overall, the positive developments and strategic initiatives appear to outweigh the negative aspects.
Q2-2025 Updates
Positive Updates
Record Net Income Increase
Net income in the quarter increased by 38%, supported by strong FX rates and lower interest expenses.
EMEA Region Performance
EMEA delivered impressive results with continued volume recovery and operating leverage, achieving a solid margin expansion of almost 3 percentage points.
Project Cutting Edge Savings
EBITDA savings for 2025 are expected to reach $200 million, up from an initial expectation of $150 million, with a run rate target of $400 million by 2027.
Energy Cost Reductions
Energy costs on a per ton of cement basis declined by 14%, contributing positively to overall cost improvements.
Positive Pricing Strategies
Consolidated prices for ready-mix and aggregates increased by 1% and 2% respectively, with cumulative price increases since the beginning of the year of 5% for cement, 6% for ready-mix, and 8% for aggregates.
Negative Updates
Volume Decline in Mexico and U.S.
Weaker volumes in Mexico and the U.S. impacted consolidated volume performance, partially offset by recovery in EMEA.
Challenges in U.S. Residential Sector
U.S. volumes were affected by continued weakness in the residential sector and high levels of precipitation in many markets.
Impact of Mexican Peso
The Mexican peso remained a relevant headwind, partially offset by the appreciation of other currencies.
Company Guidance
In the CEMEX second quarter 2025 earnings call, the company provided comprehensive guidance on its strategic initiatives and financial expectations. CEMEX aims to achieve operational excellence and industry-leading shareholder returns, with a focus on increasing profitability, free cash flow conversion rate, and asset efficiency. The company announced an increase in expected EBITDA savings for the year to $200 million, up from the initial $150 million, with projected run rate savings of $400 million by 2027. This includes $200 million from corporate headcount reduction. CEMEX also highlighted its capital allocation strategy, aiming for a balanced approach between dividends, share buybacks, and small to midsized M&A transactions, particularly in the U.S. The company expects consolidated EBITDA to be flat compared to 2024 but sees potential upside, subject to macroeconomic conditions. CEMEX anticipates a tailwind of $60 million in the second half of 2025 if FX rates remain stable and projects free cash flow improvements through continued operational efficiencies and Project Cutting Edge initiatives. The company remains committed to achieving a net leverage ratio target of 1.5x, primarily through EBITDA growth and free cash flow generation.

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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.20B17.39B15.58B14.55B12.97B
Gross Profit5.44B5.86B4.82B4.67B4.18B
EBITDA2.67B3.26B2.42B2.68B595.00M
Net Income939.00M182.00M858.00M753.00M-1.47B
Balance Sheet
Total Assets27.30B28.43B27.49B27.70B28.07B
Cash, Cash Equivalents and Short-Term Investments864.00M624.00M495.00M613.00M950.00M
Total Debt7.36B8.16B8.82B9.16B11.19B
Total Liabilities14.82B16.32B16.58B17.43B19.12B
Stockholders Equity12.18B11.05B10.50B9.83B8.07B
Cash Flow
Free Cash Flow894.00M984.00M415.00M862.00M987.00M
Operating Cash Flow1.89B2.16B1.48B1.85B1.58B
Investing Cash Flow-328.00M-1.34B-732.00M-285.00M88.00M
Financing Cash Flow-1.25B-701.00M-961.00M-1.85B-1.50B

Cemex SAB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.97
Price Trends
50DMA
7.05
Positive
100DMA
6.43
Positive
200DMA
6.10
Positive
Market Momentum
MACD
0.26
Negative
RSI
74.26
Negative
STOCH
92.45
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 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 (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$562.07M9.3616.29%8.01%3.95%27.28%
77
Outperform
$7.23B16.0833.52%0.56%0.05%0.96%
72
Outperform
$12.04B8.266.58%1.32%-8.41%570.14%
69
Neutral
$34.42B32.8311.88%0.68%-0.54%-48.61%
67
Neutral
$1.33B13.1314.05%-37.30%32.91%
59
Neutral
HK$17.46B4.72-5.52%3.34%-3.57%-61.41%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CX
Cemex SAB
8.25
1.97
31.37%
CPAC
Cementos Pacasmayo SAA
6.26
1.21
23.96%
EXP
Eagle Materials
220.04
-14.58
-6.21%
MLM
Martin Marietta Materials
581.44
37.61
6.92%
LOMA
Loma Negra Compania Industrial Argentina Sociedad Anonima
11.45
4.96
76.43%
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.Date of analysis: Jul 18, 2025