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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 (LOMA) AI Stock Analysis

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LOMA

Loma Negra Compania Industrial Argentina Sociedad Anonima

(NYSE:LOMA)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
$10.50
▲(41.32% Upside)
Loma Negra's overall score is primarily influenced by its strong financial performance, despite challenges in net profit margins and cash flow. The technical analysis indicates a bearish trend, which negatively impacts the score. The valuation is moderate, but the lack of a dividend yield is a downside for income investors.
Positive Factors
Revenue Growth
Significant revenue growth indicates robust demand for Loma Negra's products, enhancing its market position and supporting long-term business expansion.
Operational Efficiency
Strong operational efficiency, as reflected in healthy profit margins, suggests effective cost management and competitive advantage in the market.
Balance Sheet Health
A low debt-to-equity ratio highlights Loma Negra's prudent financial management, ensuring stability and flexibility for future growth opportunities.
Negative Factors
Net Profit Margin Decline
The decline in net profit margin suggests rising costs or financial pressures, which could impact profitability and limit reinvestment capacity.
Reduced Free Cash Flow
A significant drop in free cash flow indicates potential liquidity issues, constraining the company's ability to fund operations or invest in growth initiatives.
Decreased Return on Equity
A declining return on equity may signal reduced profitability and efficiency in generating returns from shareholder investments, affecting investor confidence.

Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA) vs. SPDR S&P 500 ETF (SPY)

Loma Negra Compania Industrial Argentina Sociedad Anonima Business Overview & Revenue Model

Company DescriptionLoma Negra Compania Industrial Argentina Sociedad Anonima (LOMA) is a leading producer and supplier of cement and related products in Argentina. Established in the late 20th century, the company operates in the construction materials sector, focusing primarily on the production of cement, concrete, and aggregates. LOMA plays a crucial role in the building and infrastructure development of the country, catering to both residential and commercial construction markets.
How the Company Makes MoneyLoma Negra generates revenue primarily through the sale of cement, which constitutes the majority of its income. The company operates several cement plants across Argentina, allowing it to produce a wide range of cement products that meet various industry standards. In addition to cement, LOMA also earns income from the sale of ready-mix concrete and aggregates, which are essential for construction projects. The company benefits from established relationships with construction companies, distributors, and retailers, which enhance its market reach. Furthermore, LOMA's revenue can be influenced by construction trends and government infrastructure projects that drive demand for its products. The company also focuses on operational efficiency and cost management to enhance profitability.

Loma Negra Compania Industrial Argentina Sociedad Anonima Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Nov 05, 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 shows strong revenue growth and operational efficiency, with a healthy gross profit margin. However, declining net profit margins and reduced free cash flow pose challenges. The balance sheet is strong with low leverage, but decreased return on equity indicates potential profitability concerns.
Income Statement
75
Positive
Loma Negra shows strong revenue growth in the TTM period with a 78.3% increase, indicating robust demand. The gross profit margin is healthy at 26.99%, and the EBIT margin is impressive at 29.35%, reflecting efficient operations. However, the net profit margin has decreased from 21.99% in 2024 to 13.63% in the TTM, suggesting increased costs or other financial pressures.
Balance Sheet
70
Positive
The company's debt-to-equity ratio remains low at 0.23, indicating conservative leverage. Return on equity has decreased from 19.39% in 2024 to 12.55% in the TTM, which may signal reduced profitability. The equity ratio is stable, suggesting a solid capital structure.
Cash Flow
60
Neutral
Operating cash flow is positive, but the free cash flow has significantly decreased by 69.28% in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.34, showing a weaker conversion of income to cash. The free cash flow to net income ratio is 0.39, which is relatively low, suggesting limited cash available for reinvestment or debt repayment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue692.52B699.18B422.16B451.95B446.87B62.83B
Gross Profit176.24B186.98B105.79B121.98B141.15B19.01B
EBITDA173.58B169.01B93.41B118.52B134.50B18.62B
Net Income65.22B153.81B10.31B6.04B39.95B17.13B
Balance Sheet
Total Assets1.65T1.41T638.84B631.83B204.24B107.09B
Cash, Cash Equivalents and Short-Term Investments15.89B8.55B14.66B15.29B10.27B6.60B
Total Debt275.39B174.09B151.36B68.00B5.50B10.52B
Total Liabilities711.68B615.21B344.62B270.76B63.00B38.57B
Stockholders Equity936.28B793.34B294.24B360.46B140.92B68.10B
Cash Flow
Free Cash Flow16.39B51.67B48.98B65.89B48.30B3.90B
Operating Cash Flow88.58B124.72B85.03B97.66B91.29B18.45B
Investing Cash Flow-75.90B-72.89B-35.83B-14.69B-53.65B-2.36B
Financing Cash Flow-3.34B-48.27B-41.09B-77.17B-53.14B-19.74B

Loma Negra Compania Industrial Argentina Sociedad Anonima Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.43
Price Trends
50DMA
9.32
Negative
100DMA
10.51
Negative
200DMA
10.92
Negative
Market Momentum
MACD
-0.48
Negative
RSI
37.65
Neutral
STOCH
38.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOMA, the sentiment is Negative. The current price of 7.43 is below the 20-day moving average (MA) of 7.59, below the 50-day MA of 9.32, and below the 200-day MA of 10.92, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$628.39M10.5116.29%7.13%3.95%27.28%
77
Outperform
$3.10B17.0127.89%0.94%16.89%24.91%
76
Outperform
$2.82B0.80%
76
Outperform
$7.66B17.2831.87%0.42%0.88%-4.17%
73
Outperform
$13.60B8.837.12%0.95%-9.62%795.20%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
58
Neutral
$959.07M13.268.93%-33.46%-32.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LOMA
Loma Negra Compania Industrial Argentina Sociedad Anonima
7.43
-1.07
-12.59%
CPAC
Cementos Pacasmayo SAA
7.14
1.78
33.21%
CX
Cemex SAB
9.10
3.13
52.43%
EXP
Eagle Materials
232.26
-59.59
-20.42%
TGLS
Tecnoglass
63.76
-8.31
-11.53%
TTAM
Titan America SA
14.92
-1.35
-8.30%

Loma Negra Compania Industrial Argentina Sociedad Anonima Corporate Events

Loma Negra’s Parent Company Approves Reorganization Plan
Oct 7, 2025

On October 6, 2025, Loma Negra’s controlling shareholder, Intercement Participações S.A., announced that a Creditors’ Meeting approved a Judicial Reorganization Plan. This plan includes the potential sale of Loma Negra’s shares and the transfer of shareholding control to a group of creditors. Despite these developments, Loma Negra is not involved in the reorganization process, and its operations will continue unaffected, maintaining its commitment to transparency and keeping investors informed.

Loma Negra Reports Decline in Mid-2025 Financial Performance
Aug 19, 2025

Loma Negra Compañía Industrial Argentina Sociedad Anónima released its unaudited consolidated condensed interim financial statements for the period ending June 30, 2025. The report highlights a decrease in net revenues compared to the previous year, with net profits also showing a significant decline. The financial results reflect challenges in the market, including exchange rate differences and increased financial expenses, impacting the company’s profitability. Despite these challenges, the company maintains a strong equity position, with a focus on managing its liabilities and capital reserves.

Loma Negra Announces Strategic Bond Issuance and Debt Restructuring
Aug 13, 2025

On August 13, 2025, Loma Negra announced a financial maneuver involving its negotiable bonds. The company issued Class 5 Negotiable Bonds on July 24, 2025, with a fixed annual interest rate of 8.00%, maturing in 2027. As part of the transaction, Loma Negra received in-kind subscription payments through the partial cancellation of its Class 2 and Class 3 Negotiable Bonds, originally issued in 2023. This strategic move aims to optimize the company’s debt structure and potentially improve its financial flexibility.

Loma Negra Reports Q2 2025 Earnings Amid Challenging Market Conditions
Aug 8, 2025

In its recent earnings release for the second quarter of 2025, Loma Negra reported a challenging market environment with an 8% decline in net revenues to Ps. 174.5 billion and a 30.6% drop in adjusted EBITDA to Ps. 37.0 billion. Despite a recovery in cement dispatches, which grew 11% year-over-year, the company faced margin contractions across most segments, except for the railroad segment. The company successfully issued a US$112.9 million bond in July to refinance short-term debt, maintaining a solid balance sheet with a net debt of US$215 million.

Loma Negra Reports Decline in 2Q25 Financial Results Amid Competitive Market
Aug 7, 2025

Loma Negra reported its financial results for the second quarter of 2025, revealing a decrease in net sales revenues by 8% year-over-year, primarily due to a 9.9% decline in the cement segment. Despite an 11% increase in cement volumes, the company faced challenges with pricing dynamics in a competitive recovery phase. The adjusted EBITDA margin dropped to 21.2%, and net profit significantly decreased to Ps. 385 million from Ps. 41,246 million in the previous year. Loma Negra also announced the launch of a new 25-kilogram cement bag and a successful bond issuance of US$112.9 million in July, aimed at maintaining a healthy debt profile.

Loma Negra’s Parent Company Intercement Reaches Restructuring Agreement
Jul 25, 2025

On July 24, 2025, Loma Negra announced that its controlling shareholder, Intercement Participações S.A., reached an agreement in principle with a majority of its creditors for a potential consensual restructuring. The agreement includes a marketing process for Intercement’s stake in Loma Negra, but the company clarified that it is not part of the judicial reorganization, and its operations remain unaffected. The negotiations are set to continue until August 15, 2025, with the aim of finalizing the deal documentation.

Loma Negra Successfully Closes $112.9 Million Bond Placement
Jul 23, 2025

On July 22, 2025, Loma Negra announced the successful closure of the public placement of its Class 5 negotiable bonds, part of a larger program valued at up to $500 million. The bonds, issued at a face value of $112,878,134 with an 8% interest rate, are set to be issued and settled on July 24, 2025, with a maturity of 24 months. This move is expected to strengthen Loma Negra’s financial position and support its ongoing operations, potentially impacting its market standing and stakeholder interests positively.

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.Date of analysis: Aug 20, 2025