Cematrix (CEMX) AI Stock Analysis

• Market Cap: C$55.57M
• Dividend Yield: N/A
• Average Volume (3M): 191.05K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.07
• Revenue Growth: -3.69%
• EPS Growth: 85.59%
• Country: CA
• Employees: 61
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.01
• Shares Outstanding: 150,202,590
• 10 Day Avg. Volume: 143,116
• 30 Day Avg. Volume: 191,053
• PEG Ratio: -1.73
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 12.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.07
• Revenue Forecast (FY): C$68.48M

• Rating: 73 Outperform
• Price Target: C$0.41 ▲(17.71% Upside)

Cematrix's overall stock score is driven by strong earnings call results and solid financial performance, particularly in profitability and revenue growth. The technical analysis and valuation are neutral, reflecting a balanced market view. The absence of corporate events and dividend yield slightly tempers the score, but the company's growth trajectory and financial stability provide a positive outlook.

Positive Factors

Improved Gross Margins

Sustained margin expansion to mid-30s reflects lasting operational improvements and pricing power in cellular concrete. Higher gross margins provide a structural buffer against raw material cost swings and support reinvestment in product development and capacity over the next several quarters.

Strong Liquidity and Low Leverage

A clean long-term debt profile and nearly $10M cash create durable financial flexibility. This reduces refinancing risk, enables disciplined capital allocation for backlog conversion, and supports capital expenditures or weathering construction-cycle variability over the medium term.

Growing Backlog and Revenue Momentum

A rising backlog and multi-year revenue growth signal persistent demand for Cematrix’s cellular concrete solutions. Contracted workflow supports visibility into future revenue, aiding capacity planning and making current growth less dependent on short-term market swings.

Negative Factors

Weak Cash Conversion

Deeply negative FCF growth and an OCF-to-net-income ratio near 0.04 indicate structural cash conversion issues. Poor conversion limits self-funding capacity for working capital and capex, increasing reliance on external financing and constraining durable scaling of operations.

Seasonal, Lumpy Revenue and Project Delays

Seasonal and lumpy demand, plus project timing shifts, create persistent volatility in quarterly results and working capital needs. This structural variability complicates forecasting, resource allocation, and can pressure margins if fixed costs must be retained through slow periods.

Historical Leverage Volatility

Although current leverage is low, prior swings in debt levels show the balance sheet can deteriorate under stress or growth pushes. This raises governance and refinancing risk over the medium term if cash conversion remains weak or capital requirements rise.

Cematrix Business Overview & Revenue Model

Company Description

CEMATRIX Corporation, through its subsidiaries, focuses on the sale and onsite production of cellular concrete for various applications in the infrastructure, industrial, and commercial construction markets in North America. Its cellular concrete products are used as lightweight backfill for MSE walls, bridge approach fills, roadways and runways, and slope stabilization; insulation material for oil and gas facility slabs, roadways, shallow utilities, and contaminated site remediation; and grout, such as tunnel grouting, annular pipe grout, and pipe abandonment, as well as flowable fills applications. The company is headquartered in Calgary, Canada.

How the Company Makes Money

Cematrix generates revenue primarily through the sale of its lightweight cellular concrete products and related services. The company's revenue model is based on direct sales to construction companies, contractors, and developers, who utilize its products in various construction applications. Key revenue streams include project-based sales, which often involve long-term contracts and partnerships with construction firms, as well as sales from its proprietary technology and equipment used in the production of concrete. Additionally, Cematrix benefits from strategic partnerships with industry stakeholders, enhancing its market reach and establishing a solid reputation in the construction sector, which contributes to its earnings.

Cematrix Financial Statement Overview

Summary

Cematrix demonstrates a strong recovery and growth trajectory in its income statement, with improved profitability and revenue growth. The balance sheet remains stable with low leverage, although past fluctuations in debt levels warrant caution. Cash flow management appears to be a challenge, with negative free cash flow growth and low cash conversion ratios. Continued focus on cash flow improvements and maintaining leverage stability will be crucial for sustained financial health.

Income Statement

Cematrix has shown a strong improvement in its income statement metrics over the TTM period. The gross profit margin has increased to 29.76%, and the net profit margin has improved to 5.03%, indicating enhanced profitability. The revenue growth rate of 13.71% TTM suggests a positive growth trajectory. Additionally, the EBIT and EBITDA margins have strengthened, reflecting better operational efficiency. However, the company has experienced fluctuations in revenue growth in previous years, which could pose a risk if not managed well.

Balance Sheet

The balance sheet of Cematrix reflects a stable financial position with a low debt-to-equity ratio of 0.10 TTM, indicating prudent leverage management. The return on equity has improved to 5.20% TTM, showcasing better returns for shareholders. The equity ratio is solid, suggesting a strong capital structure. However, the company has had periods of higher leverage in the past, which could be a potential risk if debt levels increase again.

Cash Flow

Cematrix's cash flow statement indicates some challenges, with a negative free cash flow growth rate of -137.03% TTM, highlighting potential cash management issues. The operating cash flow to net income ratio is low at 0.04 TTM, suggesting limited cash conversion from profits. The free cash flow to net income ratio is negative, indicating cash flow constraints. Despite these challenges, the company has previously shown positive free cash flow growth, which could be leveraged for future improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.92M	35.36M	53.30M	29.00M	22.60M	26.56M
Gross Profit	13.72M	9.42M	11.88M	2.52M	3.90M	5.62M
EBITDA	6.59M	2.50M	4.44M	-3.44M	1.02M	-4.81M
Net Income	3.10M	270.00K	1.24M	-5.56M	-1.85M	-9.78M
Balance Sheet
Total Assets	50.10M	43.40M	39.28M	40.82M	44.39M	28.84M
Cash, Cash Equivalents and Short-Term Investments	9.95M	10.29M	3.29M	10.68M	19.95M	2.48M
Total Debt	3.81M	3.59M	3.24M	7.58M	8.39M	15.09M
Total Liabilities	10.81M	6.02M	10.56M	13.07M	12.81M	28.16M
Stockholders Equity	39.29M	37.37M	28.72M	27.74M	31.58M	679.00K
Cash Flow
Free Cash Flow	811.00K	2.90M	-1.46M	-5.09M	-1.51M	1.54M
Operating Cash Flow	3.19M	4.90M	503.00K	-3.20M	-834.00K	1.66M
Investing Cash Flow	-2.55M	-2.02M	-2.03M	-4.04M	-619.00K	-75.99K
Financing Cash Flow	-718.00K	3.98M	-5.82M	-2.31M	18.95M	1.75M

Cematrix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CEMX, the sentiment is Positive. The current price of 0.35 is below the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.35, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CEMX.

Cematrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBM	76 Outperform	C$903.47M	11.33	12.33%	5.85%	28.20%	36.95%
CEMX	73 Outperform	C$55.57M	17.96	8.30%	―	-3.69%	85.59%
FBF	66 Neutral	C$10.46M	20.69	8.59%	―	4.45%	-27.12%
TBL	64 Neutral	C$388.60M	8.77	11.85%	―	2.99%	-12.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Cematrix Corporate Events

Cematrix Secures $7.1 Million in New Cellular Concrete Contracts

Cematrix Corporation has secured $7.1 million in new contract awards, largely for load-reducing and lightweight fill applications on highway, retaining wall and utility projects, along with a range of smaller jobs across Canada and the United States. Management framed these early 2026 wins as evidence of robust demand and customer confidence in its cellular concrete solutions and project execution capabilities, suggesting a busy year ahead that should support continued operational momentum and reinforce the company’s competitive position in the geotechnical construction sector.

The most recent analyst rating on (TSE:CEMX) stock is a Buy with a C$0.39 price target. To see the full list of analyst forecasts on Cematrix stock, see the TSE:CEMX Stock Forecast page.

CEMATRIX Secures $6.9 Million in New Contracts, Surpassing $50 Million for the Year

CEMATRIX Corporation announced it has secured $6.9 million in new contract awards, contributing to a total of $50.5 million in new contracts for the year. These contracts, which include projects such as highway improvement and tunnel grouting, are set to be completed in 2026. The company’s success in securing these contracts highlights customer confidence in its ability to deliver quality geotechnical solutions, reinforcing its market position and potentially easing future sales efforts.

The most recent analyst rating on (TSE:CEMX) stock is a Buy with a C$0.38 price target. To see the full list of analyst forecasts on Cematrix stock, see the TSE:CEMX Stock Forecast page.

CEMATRIX Reports Record Third-Quarter Financial Results for 2025

CEMATRIX Corporation has announced its third-quarter financial results for 2025, showcasing a record year-to-date adjusted EBITDA. The company reported a significant increase in revenue and adjusted EBITDA compared to the previous year, with year-to-date figures already surpassing its best-ever full-year adjusted EBITDA from 2023. This financial performance reflects CEMATRIX’s commitment to growth and fulfilling its promises to stakeholders. The company has also secured new contracts worth millions and maintains a strong cash position, indicating a robust operational footing and optimistic outlook for the future.

The most recent analyst rating on (TSE:CEMX) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Cematrix stock, see the TSE:CEMX Stock Forecast page.

CEMATRIX to Announce Q3 2025 Financial Results and Host Webinar

CEMATRIX Corporation announced it will release its third-quarter financial results for 2025 on November 5, followed by a webinar on November 6 to discuss these results and provide a corporate update. This announcement is significant as it highlights CEMATRIX’s ongoing financial health and operational progress, which is crucial for stakeholders and investors monitoring the company’s growth trajectory in the competitive construction industry.

The most recent analyst rating on (TSE:CEMX) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Cematrix stock, see the TSE:CEMX Stock Forecast page.