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

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Loma Negra Compania Industrial Argentina Sociedad Anonima

(NYSE:LOMA)

74Outperform

Loma Negra's strong financial performance, characterized by robust revenue and profit growth, efficient cost management, and solid cash flow, is a key strength. Neutral technical indicators and an attractive valuation relative to P/E ratios provide a balanced investment case, although the lack of dividend yield and absence of significant corporate events or earnings call data limit additional upward momentum.

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

Market Cap

$1.35B

Dividend YieldN/A

Average Volume (3M)348.24K

Price to Earnings (P/E)9.3

Beta (1Y)0.64

Revenue Growth-42.74%

EPS Growth242.59%

CountryUS

Employees2,885

SectorBasic Materials

Sector Strength59

IndustryConstruction Materials

Share Statistics

EPS (TTM)1.19

Shares Outstanding119,205,300

10 Day Avg. Volume292,190

30 Day Avg. Volume348,242

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$13.50

Price Target Upside21.40% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

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 through the production and sale of cement, concrete, and lime, which are critical components for construction and infrastructure projects. The company's revenue model is based on manufacturing these materials and distributing them to various sectors, including residential, commercial, and industrial construction. Key revenue streams include the sale of cement and concrete to construction companies and distributors. Additionally, Loma Negra benefits from long-term contracts and partnerships with major construction firms and infrastructure developers, which provide stable and predictable revenue. The company's earnings are also influenced by Argentina's construction industry trends, economic conditions, and government infrastructure investment policies.

Loma Negra Compania Industrial Argentina Sociedad Anonima Financial Statement Overview

Summary

Loma Negra demonstrates strong financial health, with impressive growth in revenue and profitability, efficient cost management, and a solid balance sheet. Positive cash flow trends further reinforce its stability, positioning it well for future growth.

Income Statement

―

Loma Negra has demonstrated strong revenue growth, with a substantial increase from 2023 to 2024. The gross profit margin has been consistently healthy, and the net profit margin has improved significantly, indicating enhanced profitability. EBIT and EBITDA margins are robust, showcasing efficient cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting a balanced approach to leverage. Return on equity has shown improvement, reflecting effective utilization of shareholder funds to generate profits. The equity ratio is strong, indicating a solid financial foundation with ample shareholder equity relative to total assets.

Cash Flow

―

Loma Negra has experienced positive free cash flow growth, demonstrating its ability to generate cash after capital expenditures. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion from net income. The free cash flow to net income ratio is also strong, underscoring the company's capacity to maintain liquidity while covering its financial obligations.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
113.81B	67.24B	83.09B	102.85B	13.60B
	EBITDA
169.01B	93.41B	118.52B	134.50B	18.62B
	Net Income Common Stockholders
153.81B	10.31B	6.04B	39.95B	17.13B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.55B	6.73B	15.29B	10.27B	6.60B
	Total Assets
1.41T	638.84B	631.83B	204.24B	107.09B
	Total Debt
174.09B	151.36B	68.00B	5.50B	10.52B
	Net Debt
166.11B	146.33B	65.93B	4.86B	10.12B
	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

Technical Analysis Sentiment

Positive

Last Price11.12

Price Trends

50DMA

10.82

Positive

100DMA

11.43

Negative

200DMA

9.89

Positive

Market Momentum

MACD

0.16

Negative

RSI

51.60

Neutral

STOCH

42.09

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 11.12 is above the 20-day moving average (MA) of 10.71, above the 50-day MA of 10.82, and above the 200-day MA of 9.89, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 42.09 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 (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USLM	78 Outperform	$2.86B	23.78	25.44%	0.21%	17.83%	50.28%
TGLS	78 Outperform	$3.50B	21.67	27.36%	0.70%	6.83%	-10.81%
EXP	76 Outperform	$7.79B	16.72	33.51%	0.43%	0.64%	-1.15%
CPAC	75 Outperform	$534.04M	8.49	15.93%	9.35%	2.50%	15.20%
LOMA	74 Outperform	$1.35B	9.34	24.53%	―	-42.74%	242.59%
CX	73 Outperform	$9.33B	6.37	6.58%	1.34%	-8.41%	570.14%
Sector *	49 Neutral	$1.95B	-1.27	-21.38%	3.72%	0.83%	-29.30%

* Basic Materials Sector Average

Performance Comparison

LOMA

Loma Negra Compania Industrial Argentina Sociedad Anonima

11.12

3.52

46.32%

CPAC

Cementos Pacasmayo SAA

5.36

0.16

3.08%

Cemex SAB

6.15

-1.72

-21.86%

EXP

Eagle Materials

233.97

-31.63

-11.91%

USLM

United States Lime & Minerals

99.81

27.92

38.84%

TGLS

Tecnoglass

74.39

19.70

36.02%

Loma Negra Compania Industrial Argentina Sociedad Anonima Earnings Call Summary

Earnings Call Date:Mar 06, 2025

(Q3-2024)

% Change Since: 5.40%|

Next Earnings Date:May 06, 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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.