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

• Market Cap: €2.06B
• Dividend Yield: 2.12%
• Average Volume (3M): 78.09K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.53
• Revenue Growth: 0.39%
• EPS Growth: -14.36%
• Country: IT
• Employees: 3,082
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Construction Materials
• EPS (TTM): 0.47
• Shares Outstanding: 159,120,000
• 10 Day Avg. Volume: 69,938
• 30 Day Avg. Volume: 78,090
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €14.60
• Price Target Upside: 10.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: €14.00 ▲(6.06% Upside)

Cementir Holding S.p.A. is fundamentally strong with robust financial performance and reasonable valuation. However, technical analysis indicates bearish momentum, which may pose short-term risks. Overall, the stock presents a balanced risk-return profile with long-term potential backed by solid financials.

Positive Factors

Guidance

2025-27 EBITDA margin guidance was revised upward.

Innovation

The recently announced CCS project in Denmark is a game changer for the group.

Profitability

FY24 preliminary results beat profitability estimates.

Negative Factors

Market Perception

Cementir remains undervalued, while being a much-improved business.

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

Company Description

Cementir Holding S.p.A. is an Italian multinational company specializing in the production and distribution of cement, ready-mix concrete, aggregates, and other construction materials. Operating primarily in Europe, North America, and the Middle East, Cementir plays a significant role in the construction industry, offering a wide range of products including white and gray cement, as well as environmentally friendly solutions. The company focuses on sustainable practices and innovation to meet the growing demands of the construction sector.

How the Company Makes Money

Cementir Holding generates revenue primarily through the sale of cement and ready-mix concrete, which are its core products. The company operates various production plants and distribution networks, allowing it to serve a diverse customer base, including contractors, builders, and wholesale distributors. Key revenue streams include direct sales to construction firms, retail sales of construction materials, and long-term supply contracts with major construction projects. Additionally, Cementir benefits from partnerships with local and international construction firms, which can lead to substantial contracts and increased market presence. The company also focuses on operational efficiency and cost management to enhance profitability, while its commitment to sustainability may attract clients looking for eco-friendly building solutions.

Cementir Holding S.p.A. Financial Statement Overview

Summary

Cementir Holding S.p.A. exhibits strong financials with solid profitability, a stable balance sheet, and effective cash flow management. The company has robust profit margins, low leverage, and strong cash generation capabilities.

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	1.27B	1.71B	1.70B	1.72B	1.36B	1.22B
Gross Profit	744.25M	1.01B	967.88M	919.68M	817.50M	755.58M
EBITDA	321.73M	439.28M	434.12M	371.68M	290.24M	259.59M
Net Income	59.79M	201.64M	201.36M	162.29M	113.32M	102.01M
Balance Sheet
Total Assets	0.00	2.76B	2.52B	2.49B	2.11B	2.23B
Cash, Cash Equivalents and Short-Term Investments	485.60M	503.24M	412.39M	355.76M	282.54M	413.56M
Total Debt	0.00	183.15M	189.02M	297.01M	315.10M	529.18M
Total Liabilities	-1.86B	899.34M	871.36M	971.20M	883.50M	1.05B
Stockholders Equity	1.86B	1.72B	1.50B	1.37B	1.09B	1.06B
Cash Flow
Free Cash Flow	0.00	216.26M	193.81M	176.33M	137.30M	175.76M
Operating Cash Flow	0.00	343.90M	300.38M	281.40M	218.98M	234.22M
Investing Cash Flow	0.00	-109.32M	-91.76M	-138.98M	-72.67M	-60.21M
Financing Cash Flow	0.00	-164.20M	-139.01M	-70.27M	-284.40M	-79.53M

Cementir Holding S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CEM, the sentiment is Negative. The current price of 13.2 is below the 20-day moving average (MA) of 13.38, below the 50-day MA of 14.16, and above the 200-day MA of 12.70, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
CEM	69 Neutral	€2.06B	11.52	10.89%	2.12%	0.39%	-14.36%
Sector *	68 Neutral	€5.61B	10.57	10.45%	2.98%	-0.05%	-24.86%
BZU	62 Neutral	€8.16B	8.83	14.45%	1.59%	5.34%	-3.46%