Holcim Ltd Unsponsored ADR (HCMLY) AI Stock Analysis

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Holcim Ltd Unsponsored ADR

(OTC:HCMLY)

Rating:81Outperform

Price Target:

$27.00

▲(17.75%Upside)

Holcim Ltd demonstrates strong financial performance and positive earnings guidance, contributing to a high overall score. Technical indicators support a bullish outlook, though valuation suggests a slight overvaluation. The earnings call significantly bolstered confidence with record achievements and strategic growth plans.

Holcim Ltd Unsponsored ADR (HCMLY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$63.14B

Dividend Yield3.02%

Average Volume (3M)60.09K

Price to Earnings (P/E)19.3

Beta (1Y)0.83

Revenue Growth-0.27%

EPS Growth-0.63%

CountryUS

Employees62,391

SectorBasic Materials

Sector Strength66

IndustryConstruction Materials

Share Statistics

EPS (TTM)0.71

Shares Outstanding2,895,623,000

10 Day Avg. Volume0

30 Day Avg. Volume60,093

Financial Highlights & Ratios

PEG Ratio0.18

Price to Book (P/B)1.00

Price to Sales (P/S)0.00

P/FCF Ratio9.51

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$19.00

Price Target Upside-17.14% Downside

Rating ConsensusHold

Number of Analyst Covering0

Holcim Ltd Unsponsored ADR Business Overview & Revenue Model

Company DescriptionHolcim Ltd Unsponsored ADR (HCMLY) represents the American Depository Receipts of Holcim Ltd, a global leader in building solutions based in Switzerland. The company operates in the construction materials sector, primarily focusing on the production and distribution of cement, aggregates, ready-mix concrete, and other related products. Holcim serves a diverse range of clients from individual home builders to large-scale infrastructure projects, emphasizing innovation and sustainability in its offerings.

How the Company Makes MoneyHolcim Ltd generates revenue primarily through the sale of construction materials, including cement, aggregates, and ready-mix concrete. The company's revenue model is based on manufacturing these materials and distributing them to a broad customer base that includes construction companies, governments, and individual consumers. Key revenue streams include the direct sale of products, long-term contracts for infrastructure projects, and partnerships with construction firms. Holcim's global footprint allows it to capitalize on regional construction booms and infrastructure development, while its focus on sustainable building solutions aligns with growing environmental regulations and consumer preferences, further driving its earnings.

Holcim Ltd Unsponsored ADR Earnings Call Summary

Earnings Call Date:Feb 28, 2025

(Q4-2024)

% Change Since: 11.15%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

Holcim reported a strong financial performance with record EBIT, EPS growth, and free cash flow, driven by strategic initiatives and successful M&A activities. Despite challenges such as foreign exchange impacts and extra costs, the company's focus on sustainable solutions and expansion of branded solutions contributed to positive results.

Q4-2024 Updates

Positive Updates

Record Recurring EBIT

Holcim delivered a record recurring EBIT of more than CHF5 billion for the first time in its history, up 11% in local currency and 6% in Swiss francs.

Earnings Per Share Growth

Earnings per share increased by 5% to CHF5.7, showing consistent growth over several years.

Free Cash Flow Achievement

The company achieved a record free cash flow of CHF3.8 billion, with a 57% cash conversion.

EBIT Margin Expansion

EBIT margin expanded by 150 basis points to a record 19.1%.

Growth in Advanced Branded Solutions

Sales from advanced branded solutions grew to 36% of total net sales in 2024, up from 30% in 2023.

Proposed Dividend Increase

Proposed dividend increased by 11% to CHF3.1 per share.

Successful M&A Execution

Completed 27 transactions in 2024, strengthening the geographical footprint, with significant investments in Latin America and other regions.

Sustainable Building Solutions

Holcim advanced its sustainable building solutions with projects in Vienna, Texas, and Ecuador, among others.

Circular Construction Advancements

Recycled construction and demolition materials reached 10.2 million tons in 2024.

Negative Updates

Foreign Exchange Impact

The appreciation of the Swiss franc impacted EBIT by minus 4.8%.

Extra Costs and Impairments

Higher extra costs including legal costs, asset write-offs, goodwill impairments, and book losses from disposals, totaling around CHF350 million more than last year.

Delays in North America Projects

Delays in execution of infrastructure projects in North America due to changes in administration and policy.

Company Guidance

In the Holcim Full Year 2024 Results Presentation, CEO Miljan Gutovic highlighted remarkable financial achievements and provided forward-looking guidance. Holcim recorded a record recurring EBIT of over CHF5 billion, marking an 11% increase in local currency and a 6% increase in Swiss francs. The company also achieved a record 19.1% EBIT margin, up 150 basis points, and free cash flow reached CHF3.8 billion. For 2025, Holcim aims for mid-single-digit net sales growth in local currency, further margin expansion, and free cash flow above CHF3.5 billion. Additionally, the planned listing of the North American business, Amrize, is scheduled for completion in the first half of 2025. This strategic move is expected to position Holcim for continued profitable growth across all business segments and geographies.

Holcim Ltd Unsponsored ADR Financial Statement Overview

Summary

Holcim Ltd presents a robust financial profile with strong operational efficiency and financial stability. However, challenges in revenue growth and profitability margins need to be addressed to enhance future performance.

Income Statement

Positive

Holcim Ltd shows a stable gross profit margin with slight fluctuations in total revenue over the years. The net profit margin has slightly decreased from the previous year, indicating pressure on profitability. However, EBIT and EBITDA margins are consistent, suggesting operational efficiency. Revenue growth has been inconsistent, with a decline in recent years, highlighting a need for improvement in top-line growth.

Balance Sheet

Positive

The company's debt-to-equity ratio is relatively stable, indicating a balanced approach towards leverage. The return on equity has seen a minor decline, reflecting a slight dip in profitability. The equity ratio remains strong, which showcases a solid capital structure and financial stability.

Cash Flow

Positive

Holcim Ltd demonstrates strong cash flow metrics, with a stable operating cash flow. Free cash flow growth is positive, indicating good cash generation capability. The operating cash flow to net income ratio is healthy, suggesting effective conversion of income to cash.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
33.73B	26.41B	27.01B	29.19B	26.83B	23.14B
	Gross Profit
14.71B	11.68B	11.50B	11.61B	11.54B	9.69B
	EBIT
5.77B	4.64B	4.58B	3.22B	4.40B	3.37B
	EBITDA
8.10B	6.83B	6.82B	6.10B	6.42B	5.72B
	Net Income Common Stockholders
3.90B	2.93B	3.06B	3.31B	2.30B	1.70B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.49B	5.35B	6.09B	9.83B	6.69B	5.19B
	Total Assets
53.42B	54.28B	52.69B	57.60B	59.88B	53.22B
	Total Debt
14.40B	12.92B	13.12B	14.91B	16.61B	13.76B
	Net Debt
10.91B	7.58B	7.04B	5.09B	9.93B	8.56B
	Total Liabilities
26.36B	26.33B	25.90B	27.99B	29.41B	24.60B
	Stockholders Equity
26.28B	27.24B	26.00B	28.67B	27.68B	26.07B
Cash Flow		Free Cash Flow
3.96B	4.02B	3.96B	3.01B	3.51B	3.50B
	Operating Cash Flow
5.54B	5.67B	5.47B	4.56B	5.04B	4.62B
	Investing Cash Flow
-1.71B	-2.04B	-3.47B	2.08B	-4.71B	-1.23B
	Financing Cash Flow
-3.68B	-4.37B	-5.22B	-3.25B	1.11B	-1.89B

Holcim Ltd Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price22.93

Price Trends

50DMA

21.73

Positive

100DMA

21.29

Positive

200DMA

20.16

Positive

Market Momentum

MACD

0.36

Negative

RSI

55.31

Neutral

STOCH

83.43

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCMLY, the sentiment is Positive. The current price of 22.93 is above the 20-day moving average (MA) of 22.71, above the 50-day MA of 21.73, and above the 200-day MA of 20.16, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 55.31 is Neutral, neither overbought nor oversold. The STOCH value of 83.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCMLY.

Holcim Ltd Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCMLY	81 Outperform	$63.14B	19.27	10.91%	3.02%	-0.27%	-0.63%
VMC	78 Outperform	$34.45B	36.97	12.10%	0.75%	-2.24%	3.00%
CRH	77 Outperform	£60.87B	19.05	15.72%	1.64%	2.11%	3.37%
MLM	75 Outperform	$32.70B	31.19	11.88%	0.58%	-0.54%	-48.61%
CX	72 Outperform	$10.27B	7.02	6.58%	1.22%	-8.41%	570.14%
JHX	72 Outperform	$11.33B	26.89	21.05%	―	-1.59%	-15.58%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

* Basic Materials Sector Average

Performance Comparison

HCMLY

Holcim Ltd Unsponsored ADR

22.93

5.45

31.18%

Cemex SAB

6.77

0.34

5.29%

JHX

James Hardie

26.27

-5.73

-17.91%

MLM

Martin Marietta Materials

542.47

-28.07

-4.92%

VMC

Vulcan Materials

260.77

6.37

2.50%

CRH

CRH plc

90.04

12.51

16.14%

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.