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Holcim Ltd Unsponsored ADR (HCMLY)
OTHER OTC:HCMLY
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Holcim Ltd Unsponsored ADR
(OTC:HCMLY)
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Rating:79Outperform
Price Target:
$23.50
▲(18.69% Upside)
Action:ReiteratedDate:11/30/25
Holcim Ltd's stock is rated highly due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest significant upside potential. The company's robust earnings call guidance and technical indicators further support a positive outlook. However, challenges such as declining revenue and free cash flow growth, along with foreign exchange impacts, temper the overall score.
Positive Factors
Sustainable Offerings Expansion
Holcim's focus on sustainable products aligns with global trends towards eco-friendly construction, enhancing its competitive edge and market relevance.
Strong Free Cash Flow Outlook
A robust free cash flow outlook indicates effective financial management, providing the company with flexibility for investments and debt management.
Successful M&A Strategy
Strategic acquisitions in key markets enhance growth prospects and market positioning, contributing to long-term value creation.
Negative Factors
Declining Revenue Growth
A decline in revenue growth suggests potential challenges in market demand or competition, which could impact future profitability.
Negative Foreign Exchange Impact
Adverse currency fluctuations can erode earnings, affecting financial performance and potentially limiting international competitiveness.
Volume Declines
Decreasing sales volumes may indicate weakening demand or market share loss, posing risks to revenue and operational efficiency.
Holcim Ltd Unsponsored ADR (HCMLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.11B
Dividend Yield90.93%
Average Volume (3M)2.37K
Price to Earnings (P/E)53.1
Beta (1Y)1.15
Revenue Growth-18.01%
EPS GrowthN/A
CountryUS
Employees62,391
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.43
Shares Outstanding2,834,377,700
10 Day Avg. Volume7,116
30 Day Avg. Volume2,372
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)2.77
Price to Sales (P/S)2.71
P/FCF Ratio25.88
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit4.14
Enterprise Value/Ebitda7.96
Forecast
1Y Price Target
$17.00Price Target Upside-14.14% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.91
Revenue Forecast (FY)$20.80B
Holcim Ltd Unsponsored ADR Business Overview & Revenue Model
Company DescriptionHolcim Ltd, together with its subsidiaries, operates as a building materials and solutions company in the Asia Pacific, Europe, Latin America, the Middle East, Africa, and North America. It operates through four segments: Cement, Aggregates, Ready-mix Concrete, and Solutions & Products. The company offers cement, hydraulic binders, clinker, and other cementitious materials; aggregates, such as crushed stone, gravel, and sand; and ready-mix concrete, precast concrete products, asphalts, and mortars. In addition, it engages in the provision of contracting and other services; and retail activities, as well as waste management services. Its products are used in infrastructure projects, such as roads, mines, ports, dams, data centers, stadiums, wind farms, and electric power plants; building projects comprising individual housing, collective housing, office buildings, industrial and commercial buildings, and public buildings; and affordable housing. The company was formerly known as LafargeHolcim Ltd and changed its name to Holcim Ltd in May 2021. Holcim Ltd was founded in 1833 and is headquartered in Zug, Switzerland.
How the Company Makes MoneyHolcim generates revenue primarily through the sale of its core products: cement, aggregates, and ready-mix concrete. The company operates a diversified revenue model that includes direct sales to construction companies, infrastructure projects, and retail clients. Key revenue streams encompass the production and distribution of cement, which involves significant economies of scale and operational efficiencies. Additionally, Holcim benefits from strategic partnerships with local and international construction firms, enabling it to secure long-term contracts and increase market penetration. The company's commitment to sustainable practices and innovative solutions also attracts investment and enhances its competitive advantage, contributing to its overall earnings.
Holcim Ltd Unsponsored ADR Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based profitable growth with meaningful margin expansion, robust free cash flow, a healthy balance sheet and clear mid‑term capital allocation (NextGen Growth 2030). Regional strengths (Europe, LatAm, North Africa/Australia) and traction in sustainable, high‑value solutions were repeatedly highlighted. Key headwinds include FX effects, some LatAm integration pressures and uncertainty around EU ETS/CCUS economics, but management portrayed these as manageable or temporary. Given the preponderance of positive operational and financial metrics, plus confident guidance for 2026 aligned with mid‑term targets, the tone of the call is overall constructive and upbeat.Q4-2025 Updates
Positive Updates
Strong recurring EBIT growth and margin expansion
Recurring EBIT accelerated in Q4 (+12.2%) and achieved full-year recurring EBIT growth of 10.3% (12.2% organic growth), materially exceeding the 6%–10% target. Group recurring EBIT margin expanded by ~80 basis points to 18.3%.
Robust free cash flow and healthy balance sheet
Free cash flow reached CHF 2.2 billion with a cash conversion of 54%. Net debt leverage closed 2025 at 0.9x. Return on invested capital (ROIC) increased to 11.2%.
Shareholder returns and capital flexibility
Board proposed dividend CHF 1.7 (payout ratio 53%; post-tax dividend yield 2.4%). Foreign capital contribution reserves exceed CHF 7 billion (~17% of market cap) and NextGen Growth 2030 provides up to CHF 22 billion capital deployment capacity to 2030 with a committed CHF 7 billion return to shareholders.
Europe: margin-led performance and infrastructure wins
Europe delivered strong margin expansion (140 bps in the year and 430 bps 2020–2025) driven by high-value strategy and sustainable offerings; secured major infrastructure contracts (e.g., Gotthard Tunnel and Axenstrasse) and sees improving residential permits.
Latin America growth and retail expansion
Latin America achieved double-digit net sales growth for the year with a recurring EBIT margin above 30% (despite integration costs). Disensa retail franchise opened 460 stores in 2025, reaching 2,360 outlets.
Asia, Middle East & Africa strong momentum
AMEA reported double-digit recurring EBIT growth (14.1%) and margin expansion of 220 basis points, with particularly strong performance in North Africa and positive momentum in Australia.
Sustainability and circular construction traction
Premium low‑carbon products (ECOPact, ECOPlanet) and recycling solution ECOCycle scaling: circular construction net sales near CHF 500 million in 2025 with target CHF 800 million by 2030; 109 circular hubs established and examples of large projects using low-carbon solutions.
Active M&A and disciplined execution
2025 closed 21 transactions (18 acquisitions, 3 divestments); 66 acquisitions completed 2020–2025 at an average ~5.3x EV/EBITDA (including synergies). Signed Xella and Pacasmayo (expected closes in 2026) and expect CHF 120–150 million EBIT contribution scope from the larger deals.
Clear 2026 guidance aligned with mid‑term targets
Guidance set to organic net sales growth 3%–5%, organic recurring EBIT growth 8%–10%, continued margin enhancement and an estimated ~CHF 2 billion cash flow; circular construction volume growth target 20%+ in 2026.
Operational discipline and talent
CapEx discipline (≈CHF 400 million in 2025), continued cost and operational focus, recognized as a global Top Employer, and a workforce of ~45,000 supported by in‑house Holcim University.
Negative Updates
Foreign exchange headwinds
FX reduced sales by CHF 810 million (~5%) in 2025 and created profit headwinds (CHF 200 million cited, ~7% on one measure). Management expects FX headwinds in 2026 of roughly ~3% on sales and ~4%–5% on profit (with Q1 still challenging).
Latin America margin pressure and integration costs
LatAm experienced margin deterioration driven by onboarding/integration costs, adverse mix, a mid‑year volume slump and maintenance activity (market comment referenced a ~320 bps margin decline). Management expects margin recovery in 2026 but 2025 was impacted by these transitory factors.
EU ETS uncertainty and CCUS economics
Ongoing European Commission ETS review (proposal expected Q3) created market noise and a recent ~25% fall in carbon prices over six weeks. Holcim states current CCUS investments are negligible and that CCUS projects are more comfortable economically at ~EUR100+/t CO2; ETS changes could delay projects or require derisking mechanisms.
Market seasonality and pockets of softness
Q1 is the smallest/seasonal quarter; weather and slow season can impact early-year activity. Management remains cautious on volume recovery in large markets; France and Germany volumes called 'flattish' on a conservative basis.
Political/social risk exposures
Mexico experienced unrest in 20 of 32 states during the period (operations largely unaffected but 4 states remained tense), representing a political risk that is being monitored.
Conservative free cash flow guidance for 2026
Guidance for 2026 cash flow is around CHF 2.0 billion versus CHF 2.2 billion achieved in 2025—management frames this as a conservative/timing-driven assumption rather than deterioration in cash generation.
Portfolio adjustments and divestments
Notable divestments (Nigeria, Jordan, Karbala plant in Iraq) indicate portfolio reshaping; these transactions can create short-term transitional effects and require redeployment of proceeds.
Company Guidance
Holcim guided for 2026 to organic net‑sales growth of 3–5% and organic recurring‑EBIT growth of 8–10%, with a further increase in recurring‑EBIT margin; it expects cash flow of around CHF 2.0 billion (after CHF 2.2bn FCF in 2025 and 54% cash conversion), plans 20%+ volume growth in circular construction in 2026, and will continue investing (CapEx was ~CHF 400m in 2025). The group closed 2025 with net‑debt leverage of 0.9x and a 2025 ROIC of 11.2%, remains committed to net leverage below 1.5x long term, and reconfirmed its NextGen Growth 2030 allocation: up to CHF 22bn deployment to 2030, CHF 7bn returned to shareholders (~50% payout) plus CHF 4–6bn capacity for large M&A or buybacks; the Board proposed a CHF 1.7 dividend (53% payout ratio, 2.4% post‑tax yield). Management also noted a move to organic‑growth guidance, an anticipated FX headwind of roughly –3% on sales and –4–5% on profit (estimate), and reiterated disciplined pricing, cost and capital allocation as drivers of the targets.Holcim Ltd Unsponsored ADR Financial Statement Overview
Summary
Holcim Ltd demonstrates strong profitability and efficient operations, with high margins and return on equity. However, declining revenue and free cash flow growth pose challenges. The balance sheet is stable with manageable leverage, supporting long-term financial health.Income Statement
Holcim Ltd shows strong profitability with a high net profit margin of 71.83% in TTM, significantly boosted by extraordinary items. However, the revenue growth rate is negative at -10.32% in TTM, indicating a decline in sales. The gross profit margin remains stable around 44%, and EBIT and EBITDA margins are healthy, reflecting efficient operations.75
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.67 in TTM, suggesting manageable leverage. Return on equity is exceptionally high at 73.63% in TTM, driven by high net income. The equity ratio is stable, indicating a solid capital structure, though total assets have decreased over time.70
Positive
Cash Flow
Operating cash flow is strong, covering net income well with a ratio of 0.81 in TTM. However, free cash flow growth is negative at -4.45% in TTM, indicating potential cash flow challenges. The free cash flow to net income ratio is robust at 0.73, showing good cash generation relative to earnings.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.46B | 15.72B | 26.41B | 27.01B | 29.19B | 26.83B |
| Gross Profit | 9.53B | 6.66B | 11.68B | 11.50B | 11.61B | 11.54B |
| EBITDA | 4.96B | 3.51B | 6.83B | 6.82B | 5.34B | 6.42B |
| Net Income | 15.42B | 804.15M | 2.93B | 3.06B | 3.31B | 2.30B |
Balance Sheet | ||||||
| Total Assets | 33.01B | 33.64B | 54.28B | 52.69B | 57.60B | 59.88B |
| Cash, Cash Equivalents and Short-Term Investments | 4.24B | 5.45B | 5.35B | 6.09B | 9.83B | 6.69B |
| Total Debt | 9.81B | 9.52B | 12.92B | 13.12B | 14.91B | 16.61B |
| Total Liabilities | 17.69B | 17.54B | 26.33B | 25.90B | 27.99B | 29.41B |
| Stockholders Equity | 14.64B | 15.39B | 27.24B | 26.00B | 28.67B | 27.68B |
Cash Flow | ||||||
| Free Cash Flow | 3.67B | 1.65B | 4.02B | 3.96B | 3.01B | 3.51B |
| Operating Cash Flow | 5.01B | 2.66B | 5.67B | 5.47B | 4.56B | 5.04B |
| Investing Cash Flow | -2.96B | -1.87B | -2.04B | -3.47B | 2.08B | -4.71B |
| Financing Cash Flow | -622.00M | -60.17M | -4.37B | -5.22B | -3.25B | 1.11B |
Holcim Ltd Unsponsored ADR Technical Analysis
Negative
19.80
Price Trends
18.99
Negative
18.69
Negative
17.43
Negative
Market Momentum
-0.92
Positive
32.04
Neutral
6.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCMLY, the sentiment is Negative. The current price of 19.8 is above the 20-day moving average (MA) of 17.64, above the 50-day MA of 18.99, and above the 200-day MA of 17.43, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 32.04 is Neutral, neither overbought nor oversold. The STOCH value of 6.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCMLY.
Holcim Ltd Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $43.11B | 53.08 | 85.78% | 90.93% | -18.01% | ― | |
75 Outperform | $34.73B | 34.81 | 12.79% | 0.67% | 6.54% | 32.48% | |
72 Outperform | $35.30B | 33.02 | 11.90% | 0.51% | 1.99% | -41.08% | |
70 Outperform | $5.89B | 16.19 | 28.78% | 0.47% | 1.50% | -4.44% | |
70 Outperform | $68.84B | 10.17 | 15.21% | 1.17% | 4.28% | 0.39% | |
69 Neutral | $15.96B | 1.73 | 10.45% | 0.74% | -6.34% | 210.97% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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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.