Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 474.09K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.55
• Revenue Growth: -33.46%
• EPS Growth: -32.34%
• Country: US
• Employees: 2,885
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Construction Materials
• EPS (TTM): <0.01
• Shares Outstanding: 119,205,300
• 10 Day Avg. Volume: 503,041
• 30 Day Avg. Volume: 474,088
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $13.50
• Price Target Upside: 43.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $10.50 ▲(11.58% 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

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 Business Overview & Revenue Model

Company Description

Loma 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 Money

Loma 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 Financial Statement Overview

Summary

Loma Negra exhibits a solid financial performance with strong profitability and efficient cash management. The company maintains healthy EBIT and EBITDA margins, reflecting efficient cost management. However, challenges in revenue growth and a slight increase in total debt could pose risks if not managed effectively.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	692.52B	699.18B	422.16B	451.95B	446.87B	62.83B
Gross Profit	176.24B	186.98B	105.79B	121.98B	141.15B	19.01B
EBITDA	173.58B	169.01B	93.41B	118.52B	134.50B	18.62B
Net Income	65.22B	153.81B	10.31B	6.04B	39.95B	17.13B
Balance Sheet
Total Assets	1.65T	1.41T	638.84B	631.83B	204.24B	107.09B
Cash, Cash Equivalents and Short-Term Investments	15.89B	8.55B	14.66B	15.29B	10.27B	6.60B
Total Debt	275.39B	174.09B	151.36B	68.00B	5.50B	10.52B
Total Liabilities	711.68B	615.21B	344.62B	270.76B	63.00B	38.57B
Stockholders Equity	936.28B	793.34B	294.24B	360.46B	140.92B	68.10B
Cash Flow
Free Cash Flow	16.39B	51.67B	48.98B	65.89B	48.30B	3.90B
Operating Cash Flow	88.58B	124.72B	85.03B	97.66B	91.29B	18.45B
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 Price: 9.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 9.41 is below the 20-day moving average (MA) of 10.94, below the 50-day MA of 11.04, and below the 200-day MA of 11.43, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 29.00 is Positive, neither overbought nor oversold. The STOCH value of 10.50 is Positive, 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAC	78 Outperform	$586.97M	9.46	16.29%	7.89%	3.95%	27.28%
USLM	77 Outperform	$3.48B	27.88	24.95%	0.18%	21.97%	44.87%
CX	75 Outperform	$13.54B	8.64	7.12%	0.93%	-9.62%	795.20%
EXP	74 Outperform	$7.70B	17.47	31.87%	0.43%	0.88%	-4.17%
TGLS	71 Outperform	$3.44B	18.61	27.89%	0.77%	16.89%	24.91%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
LOMA	58 Neutral	$1.19B	16.76	8.93%	―	-33.46%	-32.34%