Education
About Us
Working with TipRanks
Follow Us
Cemex SAB (CX)
NYSE:CX
Top Page
Cemex SAB
(NYSE:CX)
Rating:75Outperform
Price Target:
$9.50
▲(9.32% Upside)
Positive Factors
Cost Management
CX is targeting $350 million in cost savings over 3 years and focusing on free cash flow generation and improvements, with $500 million plus expected this year.
Growth Opportunities
CX has opportunities in the $20-50 million range for mergers and acquisitions, with a strong cash position of US$2 billion.
Negative Factors
Interest Rates
CX is facing potential challenges, including higher interest rates, US housing market issues, and fiscal challenges in Mexico.
Market Performance
Cemex (CX) will face a very challenging quarter with a sharp decrease in cement volume in Mexico, down 12% year over year.
Cemex SAB (CX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.19B
Dividend Yield0.97%
Average Volume (3M)12.37M
Price to Earnings (P/E)8.5
Beta (1Y)1.19
Revenue Growth-9.62%
EPS Growth795.20%
CountryUS
Employees43,800
SectorBasic Materials
Sector Strength60
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.20
Shares Outstanding1,449,087,000
10 Day Avg. Volume14,288,695
30 Day Avg. Volume12,372,154
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 Cap0.94
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit2.49
Enterprise Value/Ebitda6.53
Forecast
1Y Price Target
$8.51Price Target Upside-2.07% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Cemex SAB Business Overview & Revenue Model
Company DescriptionCemex SAB is a global leader in the building materials industry, specializing in the production and distribution of cement, ready-mix concrete, and aggregates. Operating across more than 50 countries, the company serves a diverse range of customers, including construction companies, infrastructure developers, and individual builders. Cemex is committed to sustainability and innovation, offering products and solutions that meet the evolving needs of the construction sector.
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: 9.03%|
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 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
8.69
Price Trends
7.53
Positive
6.80
Positive
6.30
Positive
Market Momentum
0.34
Positive
68.12
Neutral
82.54
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 8.69 is above the 20-day moving average (MA) of 8.33, above the 50-day MA of 7.53, and above the 200-day MA of 6.30, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 82.54 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $560.22M | 9.46 | 16.29% | 8.06% | 3.95% | 27.28% | |
78 Outperform | $37.11B | 34.10 | 12.10% | 0.51% | 1.02% | -45.31% | |
76 Outperform | $7.58B | 17.22 | 31.87% | 0.41% | 0.88% | -4.17% | |
75 Outperform | $13.19B | 8.54 | 7.12% | 0.97% | -9.62% | 795.20% | |
70 Outperform | $1.37B | 12.91 | 14.05% | ― | -37.30% | 32.91% | |
61 Neutral | $10.08B | 5.96 | 0.94% | 3.00% | 3.04% | -41.02% |
* Basic Materials Sector Average
Performance Comparison
CX
Cemex SAB
8.69
1.94
28.74%
CPAC
Cementos Pacasmayo SAA
6.22
0.86
16.04%
EXP
Eagle Materials
241.22
-8.89
-3.55%
MLM
Martin Marietta Materials
620.08
83.44
15.55%
LOMA
Loma Negra Compania Industrial Argentina Sociedad Anonima
10.90
3.88
55.27%
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.