Cementir Holding S.p.A. (CEM) AI Stock Analysis

• Market Cap: €3.11B
• Dividend Yield: 1.48%
• Average Volume (3M): 204.89K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.54
• Revenue Growth: 0.39%
• EPS Growth: -14.36%
• Country: IT
• Employees: 3,082
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 159,120,000
• 10 Day Avg. Volume: 497,089
• 30 Day Avg. Volume: 204,889
• PEG Ratio: 10.48
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 7.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €20.70
• Price Target Upside: 7.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €16.00 ▼(-17.01% Downside)

Cementir Holding S.p.A. demonstrates strong financial performance with robust profitability and efficient cash flow management, which are the most significant factors contributing to the score. The technical analysis indicates strong bullish momentum, although caution is advised due to overbought signals. The valuation is fair, with a reasonable P/E ratio and modest dividend yield.

Positive Factors

Strong Profitability

High profitability margins indicate efficient cost management and strong pricing power, supporting long-term financial health and competitive positioning.

Cash Flow Management

Improved cash generation capabilities enhance financial flexibility, allowing for strategic investments and debt management, supporting sustainable growth.

Low Leverage

Low leverage reduces financial risk, providing stability and the ability to withstand economic downturns, enhancing long-term viability.

Negative Factors

EPS Decline

A decline in EPS suggests potential challenges in profit generation, which could impact investor confidence and future capital raising capabilities.

Slower Revenue Growth

Slower revenue growth may indicate market saturation or increased competition, potentially limiting future expansion opportunities and affecting market share.

Earnings Volatility

While financials are strong, the volatility in earnings growth could pose challenges in maintaining investor confidence and strategic planning.

Cementir Holding S.p.A. Business Overview & Revenue Model

Company Description

Cementir Holding N.V., together with its subsidiaries, manufactures and distributes grey and white cement, ready-mix concrete, aggregates, and concrete products in Nordic and Baltic, Belgium, North America, Turkiye, Egypt, and Asia Pacific. The company offers white cement under the Aalborg White brand for architectural, aesthetic, and structural applications; grey cement under the FUTURECEM brand; concrete for use in infrastructure, landscaping, industry and agriculture, energy and environment, buildings, and pre-stressed and prefabricated concrete products; and aggregates, such as natural sand, gravel, and crushed stones used in concrete and prefabricated products, asphalt, road foundations and engineering works, draining materials, and agricultural land applications. It also purchases and sells clinker, replacement parts, pet-coke and coal fuels, and other construction materials; and offers shipping and logistics services, procurement management services, assistance and technical support, goods forwarding, and digital solutions. Cementir Holding N.V. was incorporated in 1947 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

Cementir Holding generates revenue primarily through the sale of cement and ready-mixed concrete, which are essential materials in construction projects. The company operates multiple production facilities across various regions, allowing it to serve local markets effectively. Key revenue streams include direct sales to construction companies, wholesalers, and distributors. Additionally, Cementir benefits from strategic partnerships with various stakeholders in the construction industry, enhancing its market reach and operational efficiency. Factors contributing to its earnings include demand for construction materials driven by infrastructure development, residential and commercial building projects, and the ongoing shift towards sustainable construction practices.

Cementir Holding S.p.A. Financial Statement Overview

Summary

Cementir Holding S.p.A. is financially robust with strong profitability, a stable balance sheet, and effective cash flow management. The company has shown consistent growth in revenue and profit margins, supported by low leverage and a strong equity position. The cash flow metrics further underscore its ability to generate cash and sustain operations.

Income Statement

Cementir Holding S.p.A. demonstrates strong profitability with a consistent increase in gross and net profit margins. The gross profit margin stands at 58.7%, and the net profit margin is 11.8% for 2024. Revenue growth has been stable with a slight 1.1% increase from the previous year, indicating steady demand. EBIT and EBITDA margins are robust at 46.1% and 23.6%, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.12, suggesting low leverage and financial risk. The equity ratio is healthy at 62.3%, indicating a strong capital structure. Return on Equity (ROE) is commendable at 11.7%, showcasing effective use of shareholder funds to generate profits.

Cash Flow

Cementir Holding S.p.A. shows strong cash flow management with a 11.6% growth in free cash flow, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.7, suggesting strong cash generation from core operations. The free cash flow to net income ratio is 1.07, indicating efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.69B	1.70B	1.72B	1.37B	1.23B
Gross Profit	727.83M	978.92M	967.88M	919.68M	817.50M	755.58M
EBITDA	279.89M	439.28M	434.12M	371.68M	290.24M	259.59M
Net Income	64.73M	201.64M	201.36M	162.29M	113.32M	102.01M
Balance Sheet
Total Assets	2.57B	2.76B	2.52B	2.49B	2.11B	2.23B
Cash, Cash Equivalents and Short-Term Investments	309.48M	503.24M	412.39M	355.76M	282.54M	413.56M
Total Debt	150.88M	183.15M	189.02M	297.67M	318.74M	538.36M
Total Liabilities	758.41M	899.34M	871.36M	971.20M	883.50M	1.05B
Stockholders Equity	1.68B	1.72B	1.50B	1.37B	1.09B	1.06B
Cash Flow
Free Cash Flow	-59.37M	216.26M	193.81M	176.33M	137.30M	175.76M
Operating Cash Flow	-20.91M	343.90M	300.38M	281.40M	218.98M	234.22M
Investing Cash Flow	-37.23M	-109.32M	-91.76M	-138.98M	-72.67M	-60.21M
Financing Cash Flow	-89.44M	-164.20M	-139.01M	-70.27M	-284.40M	-79.53M

Cementir Holding S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CEM, the sentiment is Positive. The current price of 19.28 is above the 20-day moving average (MA) of 18.87, above the 50-day MA of 17.30, and above the 200-day MA of 14.92, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 75.88 is Negative, neither overbought nor oversold. The STOCH value of 90.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CEM.

Cementir Holding S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BZU	76 Outperform	€10.09B	10.13	14.45%	1.35%	5.34%	-3.46%
CEM	75 Outperform	€3.11B	16.83	10.89%	1.48%	0.39%	-14.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%