Holcim Ltd Unsponsored ADR (HCMLY) AI Stock Analysis

• Market Cap: $55.05B
• Dividend Yield: 90.93%
• Average Volume (3M): 2.37K
• Price to Earnings (P/E): 3.2
• Beta (1Y): 1.04
• Revenue Growth: -18.01%
• EPS Growth: N/A
• Country: US
• Employees: 62,391
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.41
• Shares Outstanding: 2,834,377,700
• 10 Day Avg. Volume: 7,116
• 30 Day Avg. Volume: 2,372
• PEG Ratio: -8.96
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 12.20
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: 9.96
• 1Y Price Target: $16.90
• Price Target Upside: -14.65% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $23.50 ▲(18.69% Upside)

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 Business Overview & Revenue Model

Company Description

Holcim 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 Money

Holcim 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 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.46B	26.41B	27.01B	29.19B	26.83B	23.14B
Gross Profit	9.53B	11.68B	11.50B	11.61B	11.54B	9.69B
EBITDA	4.96B	6.83B	6.82B	5.34B	6.42B	4.84B
Net Income	15.42B	2.93B	3.06B	3.31B	2.30B	1.70B
Balance Sheet
Total Assets	33.01B	54.28B	52.69B	57.60B	59.88B	53.22B
Cash, Cash Equivalents and Short-Term Investments	4.24B	5.35B	6.09B	9.83B	6.69B	5.19B
Total Debt	9.81B	12.92B	13.12B	14.91B	16.61B	13.76B
Total Liabilities	17.69B	26.33B	25.90B	27.99B	29.41B	24.60B
Stockholders Equity	14.64B	27.24B	26.00B	28.67B	27.68B	26.07B
Cash Flow
Free Cash Flow	3.67B	4.02B	3.96B	3.01B	3.51B	3.50B
Operating Cash Flow	5.01B	5.67B	5.47B	4.56B	5.04B	4.62B
Investing Cash Flow	-2.96B	-2.04B	-3.47B	2.08B	-4.71B	-1.23B
Financing Cash Flow	-622.00M	-4.37B	-5.22B	-3.25B	1.11B	-1.89B

Holcim Ltd Unsponsored ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.8 is below the 20-day moving average (MA) of 19.97, above the 50-day MA of 19.29, and above the 200-day MA of 16.67, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 83.72 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCMLY	79 Outperform	$55.05B	3.20	12.65%	90.93%	-18.01%	―
CX	78 Outperform	$18.87B	13.46	7.10%	0.74%	-6.34%	210.97%
VMC	77 Outperform	$39.71B	35.72	13.56%	0.67%	6.54%	32.48%
CRH	76 Outperform	$81.91B	24.36	15.21%	1.17%	4.28%	0.39%
MLM	73 Outperform	$39.32B	34.34	11.63%	0.51%	1.99%	-41.08%
EXP	71 Outperform	$6.41B	15.43	28.77%	0.47%	1.50%	-4.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%