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

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Loma Negra Compania Industrial Argentina Sociedad Anonima

(NYSE:LOMA)

Rating:70Outperform

Price Target:

$12.50

▲(10.52%Upside)

Loma Negra's strong financial performance, characterized by robust profitability and cash flow management, is the primary strength. Technical indicators suggest bearish trends, impacting the overall score. The valuation is reasonable, but the lack of a dividend yield may be a downside for some investors.

Positive Factors

Economic Recovery

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

Corporate Changes

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

$1.36B

Dividend YieldN/A

Average Volume (3M)330.19K

Price to Earnings (P/E)13.4

Beta (1Y)0.56

Revenue Growth-37.30%

EPS Growth32.91%

CountryUS

Employees2,885

SectorBasic Materials

Sector Strength70

IndustryConstruction Materials

Share Statistics

EPS (TTM)0.03

Shares Outstanding119,205,300

10 Day Avg. Volume291,726

30 Day Avg. Volume330,194

Financial Highlights & Ratios

PEG Ratio-0.28

Price to Book (P/B)0.39

Price to Sales (P/S)0.00

P/FCF Ratio2.16

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$14.80

Price Target Upside30.86% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

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 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.

Loma Negra Compania Industrial Argentina Sociedad Anonima Financial Statement Overview

Summary

Overall, Loma Negra exhibits a solid financial performance with strong profitability and efficient cash management. While there are challenges in revenue growth, the company's low leverage and strong equity base provide a stable financial foundation. Continued focus on revenue expansion and prudent debt management will be crucial for sustaining long-term growth.

Income Statement

Positive

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

Positive

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

Very Positive

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	687.14B	699.18B	422.16B	451.95B	446.87B	62.83B
Gross Profit	177.38B	186.98B	105.79B	121.98B	141.15B	19.01B
EBITDA	187.99B	169.01B	93.41B	118.52B	134.50B	18.62B
Net Income	105.34B	153.81B	10.31B	6.04B	39.95B	17.13B
Balance Sheet
Total Assets	1.55T	1.41T	638.84B	631.83B	204.24B	107.09B
Cash, Cash Equivalents and Short-Term Investments	10.62B	8.55B	14.66B	15.29B	10.27B	6.60B
Total Debt	200.38B	174.09B	151.36B	68.00B	5.50B	10.52B
Total Liabilities	669.74B	615.21B	344.62B	270.76B	63.00B	38.57B
Stockholders Equity	882.80B	793.34B	294.24B	360.46B	140.92B	68.10B
Cash Flow
Free Cash Flow	53.36B	51.67B	48.98B	65.89B	48.30B	3.90B
Operating Cash Flow	125.41B	124.72B	85.03B	97.66B	91.29B	18.45B
Investing Cash Flow	-71.86B	-72.89B	-35.83B	-14.69B	-53.65B	-2.36B
Financing Cash Flow	-48.08B	-48.27B	-41.09B	-77.17B	-53.14B	-19.74B

Loma Negra Compania Industrial Argentina Sociedad Anonima Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price11.31

Price Trends

50DMA

11.92

Negative

100DMA

11.39

Negative

200DMA

10.98

Positive

Market Momentum

MACD

-0.25

Positive

RSI

45.45

Neutral

STOCH

46.56

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOMA, the sentiment is Neutral. The current price of 11.31 is below the 20-day moving average (MA) of 11.54, below the 50-day MA of 11.92, and above the 200-day MA of 10.98, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 46.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USLM	78 Outperform	$3.00B	24.97	25.44%	0.23%	17.83%	50.28%
EXP	76 Outperform	$6.99B	15.55	33.52%	0.47%	0.05%	0.96%
CPAC	75 Outperform	$555.88M	9.74	15.93%	8.15%	2.50%	15.20%
TGLS	75 Outperform	$3.67B	21.11	27.61%	0.77%	11.73%	6.58%
CX	72 Outperform	$10.97B	7.49	6.58%	1.24%	-8.41%	570.14%
LOMA	70 Outperform	$1.36B	13.40	14.05%	―	-37.30%	32.91%
Sector *	62 Neutral	$10.29B	9.96	-0.15%	2.86%	2.14%	-32.15%

* Basic Materials Sector Average

Performance Comparison

LOMA

Loma Negra Compania Industrial Argentina Sociedad Anonima

11.31

4.60

68.55%

CPAC

Cementos Pacasmayo SAA

6.15

1.07

21.06%

Cemex SAB

7.23

1.03

16.61%

EXP

Eagle Materials

214.18

1.67

0.79%

USLM

United States Lime & Minerals

104.80

33.59

47.17%

TGLS

Tecnoglass

78.04

26.40

51.12%

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: Jun 26, 2025