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Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA)
NYSE:LOMA
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Loma Negra Compania Industrial Argentina Sociedad Anonima
(NYSE:LOMA)
Rating:67Neutral
Price Target:
$12.00
▲(3.18%Upside)
Positive Factors
Earnings Growth
Argentina's cement industry has a long-term GDP multiplier of 2.5x, suggesting strong potential for earnings growth as the economy recovers.
Macro Environment
A more supportive macro backdrop, solid pricing traction, and operational excellence should allow Loma to lead in a rising market and pave the way for stronger fundamentals.
Market Position
Loma Negra's dominant share position in the Argentine cement market as well as its proven cost leadership should pave the way for stronger fundamentals.
Negative Factors
Cement Consumption
The cement consumption per capita is at its lowest level since 2005, offering an interesting entry point to a multi-year cement demand recovery.
Cement Prices
Cement prices adjusted for inflation recorded a significant decline, reflecting adaptation to a lower inflation environment and a strong currency.
Market Control
Loma Negra is controlled by InterCement, which is undergoing a reorganization process that could lead to a potential change in control.
Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.40B
Dividend YieldN/A
Average Volume (3M)304.41K
Price to Earnings (P/E)13.8
Beta (1Y)0.59
Revenue Growth-37.30%
EPS Growth32.91%
CountryUS
Employees2,885
SectorBasic Materials
Sector Strength53
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.03
Shares Outstanding119,205,300
10 Day Avg. Volume377,080
30 Day Avg. Volume304,408
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$15.07Price Target Upside29.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Loma Negra Compania Industrial Argentina Sociedad Anonima Business Overview & Revenue Model
Company DescriptionLoma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Rail Services; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of InterCement Trading e Inversiones S.A.
How the Company Makes MoneyLoma Negra makes money primarily through the production and sale of cement and related construction materials. The company's revenue streams include the sale of cement, concrete, and aggregates to various segments of the construction industry. Loma Negra leverages its extensive distribution network to supply products to both large-scale infrastructure projects and smaller construction needs. The company benefits from its strategic location within Argentina, allowing it to efficiently serve domestic markets while also exporting to neighboring countries. Additionally, Loma Negra's significant partnerships with construction firms and its ability to secure long-term supply contracts contribute to its stable revenue flow.
Loma Negra Compania Industrial Argentina Sociedad Anonima Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q3-2024)
| % Change Since: 1.39%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a positive outlook with strong sequential improvements in industry volume and stable EBITDA margins despite a challenging economic environment. Cost management, reduced net debt, and increased cash generation are notable achievements. However, significant decreases in top line performance and volume contractions across various segments highlight ongoing challenges.Q3-2024 Updates
Positive Updates
Strong Sequential Improvement in Industry Volume
Industry volume increased by 25% sequentially, indicating a recovery past the most challenging period.
Stable EBITDA Margin
Consolidated adjusted EBITDA margin stood at 24%, improving by 78 basis points year-over-year despite economic challenges.
Reduced Net Debt
Net debt decreased to $177 million, achieving a net debt-to-EBITDA ratio of 1.03x, down from 1.4x at the end of 2023.
Successful Cost Management
Cost control and operational flexibility allowed the company to mitigate the impact of higher seasonal energy costs.
Increase in Cash Generation
Cash generation from operational activities reached ARS 64 billion, up from ARS 45 billion in the same period of 2023.
Negative Updates
Decrease in Top Line and Cement Business Performance
The top line decreased by 21.2% mainly due to lower cement dispatches, with the cement, masonry cement, and lime segment declining by 21% in revenues.
Volume Contraction in Various Segments
Concrete and aggregates segments experienced a decline of 29.7% and 42.7% respectively, reflecting reduced construction activity.
Lower Net Profit Attributable to Owners
Net profit attributable to owners decreased to ARS 20.9 billion from ARS 22.9 billion in the third quarter of 2023 due to lower operational results.
Company Guidance
During the Loma Negra Third Quarter 2024 Conference Call, key guidance and metrics were highlighted by CEO Sergio Faifman and CFO Marcos Gradin. The company reported a 25% sequential increase in industry volume, although it remained below the previous year's level. Revenue decreased by 21.2% to ARS 180.7 billion, primarily due to lower cement dispatches, while consolidated adjusted EBITDA was $55 million or ARS 43 billion, reflecting an 18.5% year-over-year decline. The EBITDA margin stood at 24%, improving by 78 basis points year-over-year, despite seasonal factors like higher energy costs affecting margins. Net debt was reduced to $177 million, achieving a net debt-to-EBITDA ratio of 1.03x, down from 1.4x at the end of 2023. The company has also been focusing on cost management, especially in energy usage, and experienced a significant shift towards renewable energy, which comprised 66% of its energy mix, up from 39% the previous year.Loma Negra Compania Industrial Argentina Sociedad Anonima Financial Statement Overview
Summary
Loma Negra exhibits strong profitability with healthy EBIT and EBITDA margins, despite a decline in total revenue. The company maintains a stable financial position with low leverage and strong equity base, supported by efficient cash management.Income Statement
Loma Negra's income statement shows strong profitability with a TTM gross profit margin of 25.8% and a net profit margin of 15.3%. However, the company experienced a decline in total revenue compared to the previous year, indicating challenges in maintaining growth. Despite this, the company has maintained healthy EBIT and EBITDA margins, reflecting efficient cost management.76
Positive
Balance Sheet
The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.23, signifying low leverage. The equity ratio stands at 56.9%, indicating a strong equity base. However, total debt has increased slightly, which could pose risks if not managed effectively. Overall, the company's balance sheet reflects financial stability with manageable liabilities.69
Positive
Cash Flow
Loma Negra demonstrates robust cash flow management with a high operating cash flow to net income ratio of 1.19. The free cash flow has shown consistent growth, and the free cash flow to net income ratio is strong at 0.51. This highlights the company's ability to generate cash efficiently, supporting future investments and debt obligations.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 699.18B | 422.16B | 451.95B | 446.87B | 62.83B |
| Gross Profit | 186.98B | 105.79B | 121.98B | 141.15B | 19.01B |
| EBITDA | 169.01B | 93.41B | 118.52B | 134.50B | 18.62B |
| Net Income | 153.81B | 10.31B | 6.04B | 39.95B | 17.13B |
Balance Sheet | |||||
| Total Assets | 1.41T | 638.84B | 631.83B | 204.24B | 107.09B |
| Cash, Cash Equivalents and Short-Term Investments | 8.55B | 14.66B | 15.29B | 10.27B | 6.60B |
| Total Debt | 174.09B | 151.36B | 68.00B | 5.50B | 10.52B |
| Total Liabilities | 615.21B | 344.62B | 270.76B | 63.00B | 38.57B |
| Stockholders Equity | 793.34B | 294.24B | 360.46B | 140.92B | 68.10B |
Cash Flow | |||||
| Free Cash Flow | 51.67B | 48.98B | 65.89B | 48.30B | 3.90B |
| Operating Cash Flow | 124.72B | 85.03B | 97.66B | 91.29B | 18.45B |
| Investing Cash Flow | -72.89B | -35.83B | -14.69B | -53.65B | -2.36B |
| Financing Cash Flow | -48.27B | -41.09B | -77.17B | -53.14B | -19.74B |
Loma Negra Compania Industrial Argentina Sociedad Anonima Technical Analysis
Positive
11.63
Price Trends
11.65
Negative
11.37
Positive
11.24
Positive
Market Momentum
0.12
Negative
54.62
Neutral
65.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOMA, the sentiment is Positive. The current price of 11.63 is above the 20-day moving average (MA) of 11.07, below the 50-day MA of 11.65, and above the 200-day MA of 11.24, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 65.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOMA.
Loma Negra Compania Industrial Argentina Sociedad Anonima Risk Analysis
Loma Negra Compania Industrial Argentina Sociedad Anonima disclosed 59 risk factors in its most recent earnings report. Loma Negra Compania Industrial Argentina Sociedad Anonima reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Loma Negra Compania Industrial Argentina Sociedad Anonima Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $562.77M | 9.50 | 16.29% | 7.88% | 3.95% | 27.28% | |
80 Outperform | $7.15B | 16.24 | 31.87% | 0.45% | 0.88% | -4.17% | |
77 Outperform | $3.55B | 20.42 | 27.61% | 0.74% | 11.73% | 6.58% | |
75 Outperform | $12.70B | 8.18 | 7.12% | 1.00% | -9.62% | 795.20% | |
74 Outperform | $2.84B | 22.70 | 24.95% | 0.22% | 21.97% | 44.87% | |
67 Neutral | $1.40B | 13.78 | 14.05% | ― | -37.30% | 32.91% | |
44 Neutral | AU$1.44B | -5.92 | -41.10% | 4.24% | -3.35% | -41.14% |
* Basic Materials Sector Average
Performance Comparison
LOMA
Loma Negra Compania Industrial Argentina Sociedad Anonima
11.63
5.52
90.34%
CPAC
Cementos Pacasmayo SAA
6.36
1.15
22.07%
CX
Cemex SAB
8.40
2.48
41.89%
EXP
Eagle Materials
220.44
-22.28
-9.18%
USLM
United States Lime & Minerals
99.02
25.14
34.03%
TGLS
Tecnoglass
75.50
25.56
51.18%
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.