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

• Market Cap: €2.46B
• Dividend Yield: 1.8%
• Average Volume (3M): 204.89K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.46
• Revenue Growth: 0.39%
• EPS Growth: -14.36%
• Country: IT
• Employees: 3,082
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.47
• 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: €17.60
• Price Target Upside: 11.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: €16.00 ▲(1.39% Upside)

Cementir Holding S.p.A. receives a solid score driven by its strong financial performance and reasonable valuation. The company's robust profitability, low leverage, and effective cash flow management are significant strengths. Technical analysis indicates positive momentum, although the overbought RSI suggests caution. The absence of earnings call and corporate events data does not impact the overall score.

Positive Factors

Strong Cash Flow Management

Cementir's ability to consistently grow free cash flow underscores its operational efficiency and provides financial flexibility for reinvestment or debt reduction.

Low Leverage

A low debt-to-equity ratio indicates a strong capital structure, reducing financial risk and enhancing the company's ability to weather economic downturns.

Strong Profit Margins

High profit margins reflect efficient cost management and pricing power, which can sustain profitability even in competitive markets.

Negative Factors

Decline in EPS Growth

A decline in EPS growth may indicate challenges in maintaining profitability, potentially affecting investor confidence and future earnings potential.

Modest Revenue Growth

Modest revenue growth suggests limited expansion in market share or demand, which could constrain long-term growth prospects if not addressed.

No Recent Earnings Call Data

The absence of recent earnings call data limits transparency and investor insight into management's strategic direction and operational challenges.

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-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. 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	311.13M	327.36M	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	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: Positive
• Last Price: 15.78
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 15.78 is above the 20-day moving average (MA) of 14.86, above the 50-day MA of 14.32, and above the 200-day MA of 13.63, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 54.70 is Neutral, 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	€9.11B	9.71	14.45%	1.43%	5.34%	-3.46%
CEM	75 Outperform	€2.46B	13.65	10.89%	1.80%	0.39%	-14.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%