CX  Cemex S.a.b. De C.v.

Exchange

NYSE

Sector

Capital Goods

Industry

Building Materials

Market Cap.

123.14B

Vuru Grade

29.89/100

Current Price

$8.77
-0.09 (-1.02%)

Growth Price

$9.76
Undervalued by 11.25%

Company Metrics

  • P/E 175.4
  • P/S 9.47
  • P/B 14.15
  • EPS 0.05
  • Cash ROIC 0.79%
  • Cash Ratio 0.21
  • Dividend 0 / 0%
  • Avg. Vol. 10.39M
  • Shares 1.51B
  • Market Cap. 123.14B

Company Description

CEMEX, S.A.B. de C.V., through its subsidiaries, engages in the production, marketing, distribution, and sale of cement, ready-mix concrete, aggregates, and other construction materials worldwide. It also offers clinkers, asphalt, and prefabricated concrete ceilings and walls, as well as concrete and precast materials, such as concrete blocks, concrete block pavings, roof tiles, and flooring syste... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Cemex SAB de CV ADR CX (US: NYSE)
Wall Street Journal - Feb 11, 2011
News Cemex S.A.B. de C.V. ADRCX. Significant News Only. 03/23/17; Press Release. Industrial Goods Stocks on Investors' Radar -- Rockwell Automation, CEMEX, Donaldson, and Colfax.
Cemex SAB de CV ADR
MarketWatch - Jun 15, 2009
Cemex S.A.B. de C.V. ADR. NYSE: CX. GO. Set Alerts · Find a Broker · Join TD Ameritrade · Market Index · Overview Profile News Charts Financials Historical Quotes Analyst Estimates Options SEC Filings Insiders.
Umpqua Holdings (UMPQ) Reaches $17.17 After 6.00% Down Move; Gfs Advisors ...
Herald KS - 16 minutes ago
Cemex Sab De Cv now has $12.40B valuation. The stock rose 1.03% or $0.09 reaching $8.86 per share. About 5.01 million shares traded.
Stock Market Update – Cemex SAB de CV (ADR) (NYSE:CX), Skechers USA Inc (NYSE:SKX) - Wall Street Times (press release)
Why Cemex SAB de CV (ADR) (NYSE: CX) stock is in bullish momentum
FX Daily Report - Mar 2, 2017
Cemex SAB de CV (ADR) (NYSE: CX) in a single day trading session yesterday (March 1, 2017) recorded gains of 7.9% taking the stock to $9.14 relatively closer to the 52-week high price of $9.51.
Stocks to bet on- Cemex SAB de CV (ADR) (NYSE:CX), Arconic Inc (NYSE:ARNC) - Wall Street Times (press release)
Why Coty Inc (COTY), Centene Corp (CNC) and Cemex SAB de CV (ADR) (CX) Are 3 ...
Investorplace.com - Nov 9, 2016
In spite of assumptions that a Hillary Clinton victory would be good for stocks and a Donald Trump victory would be bad, it didn't take long for a modestly bearish open on Wednesday to turn into a third straight day of gains.
Featured Stock: Cemex SAB de CV (ADR) (NYSE:CX)
Post Registrar - Jan 25, 2017
Cemex SAB de CV (ADR) (NYSE:CX) share price soared 3.62% or 0.32 points to reach at $9.15 during previous trading session.
Analysts Alert on Price Target: Cemex SAB de CV (ADR) (NYSE:CX)
Post Registrar - Feb 21, 2017
Cemex SAB de CV (ADR) (NYSE:CX) plunged -0.46% during previous trade, a total of 5.49M shares exchanged hands compared with its average trading volume of 10.72M shares whereas its relative volume is 0.51.
Stocks To Watch For – Cemex SAB de CV (ADR) (NYSE:CX), People's United ... - Wall Street Times (press release)
Cemex SAB de CV (ADR) (NYSE:CX): Price Reaction History
Post Registrar - Nov 29, 2016
Cemex SAB de CV (ADR) (NYSE:CX) plunged -2.60% during previous trade, a total of 28.31M shares exchanged hands compared with its average trading volume of 16.73M shares whereas its relative volume is 2.04.
Chasing Hot Stocks- Cemex SAB de CV (ADR) (NYSE:CX), SYSCO Corporation (NYSE:SYY)
Wall Street Times (press release) - Mar 17, 2017
Cemex SAB de CV (ADR) (NYSE:CX) traded at a yearly high level of $9.51 during the last trading session. The last session's volume of 1.17 million shares was lower than its average volume of 9.61 million shares.
Cemex SAB de CV (ADR) (NYSE:CX) & Keane Group Inc (NYSE:FRAC) News Recap
Daily News Journal - Mar 26, 2017
On Friday, Shares of Cemex SAB de CV (ADR) (NYSE:CX) gained 0.34% to $8.87. The share price is trading in a range of $8.72 - 8.97.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CX to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CX's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$8.77 Current Price

$9.76 Growth Price (DCF)

Undervalued by 11.25%


Growth Rate Assumed by Market: -39.06%


Future Free Cash Flow Growth Rate: -15.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.69 Book Price

Overvalued by 92.11%


Poor Cash Return on Invested Capital over the past 5 years

CX has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CX has only created $0.79 of cash for every $100 invested.
Figures in MXN. Fiscal year ends in December
20112012201320142015
Free Cash Flow 3.29B 27.00M - 4.96B 9.32B
divided by
Invested Capital 460.99B 412.50B 421.39B 422.15B 454.41B
Cash ROIC 0.71% 0.01% - 1.17% 2.05%

Very Poor Return on Equity over the past 5 years

CX has shown an inability to deliver results for shareholders. This could be due to poor management, CX operating in a highly competitive industry, or having a weak business in general.

CX has generated a $6.80 loss for every $100 of Shareholders' Equity.
Figures in MXN. Fiscal year ends in December
20112012201320142015
Net Income -24.79B -11.22B -9.61B -5.68B 2.13B
divided by
Stockholders' Equity 155.10B 141.11B 133.38B 131.10B 143.48B
Return on Equity -15.98% -7.95% -7.21% -4.33% 1.49%

Excellent Business Performance over the past 10 years

CX has been able to maintain profitability in good times and bad. This could mean CX has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CX has created positive free cash flow for 9 or more of the past 10 years.
Figures in MXN. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 26.94B 22.43B 10.02B 28.10B 17.11B 3.29B 27.00M - 4.96B 9.32B

Weak Balance Sheet

CX's financial position is not ideal. The key is to check whether CX is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in MXN. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 17.11B 8.67B 13.60B 14.10B 8.35B 16.13B 12.48B 15.18B 12.59B 15.28B
Current Assets 55.88B 61.21B 68.20B 56.77B 54.57B 69.20B 63.32B 69.05B 70.96B 73.67B
Total Assets 324.50B 542.03B 623.62B 582.29B 515.10B 541.65B 478.77B 496.13B 514.96B 542.26B
Current Liabilities 48.04B 83.34B 152.74B 49.21B 55.12B 64.53B 53.79B 59.56B 80.23B 72.58B
Total Liabilities 185.28B 378.94B 432.93B 368.41B 320.92B 386.55B 337.66B 362.75B 383.86B 398.79B
Stockholder' Equity 139.22B 163.08B 190.69B 213.87B 194.18B 155.10B 141.11B 133.38B 131.10B 143.48B
Current Ratio 1.16 0.73 0.45 1.15 0.99 1.07 1.18 1.16 0.88 1.02
TL-to-TA 0.57 0.70 0.69 0.63 0.62 0.71 0.71 0.73 0.75 0.74

Low or No Reinvestment of Profits over the past 10 years

CX has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CX operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in MXN. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 167.09B 200.15B 85.40B 81.06B 79.79B 26.86B 10.84B 29.40B 21.78B 7.38B
Retained Earnings Growth - 19.78% -57.33% -5.08% -1.56% -66.34% -59.64% 171.18% -25.91% -66.11%

Loss Making Entity over the past 10 years

CX has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$0.88 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in MXN. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 25.75B 26.10B 2.28B 1.65B -16.49B -24.79B -11.22B -9.61B -5.68B 2.13B
divided by
Revenue 197.58B 236.55B 243.20B 197.80B 178.26B 189.89B 197.04B 195.66B 210.02B 225.74B
Net Profit Margin 13.03% 11.03% 0.94% 0.83% -9.25% -13.05% -5.69% -4.91% -2.70% 0.94%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. CX has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$31.30 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in MXN. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 71.46B 78.93B 76.99B 58.13B 49.95B 53.72B 58.33B 60.89B 67.28B 75.37B
divided by
Revenue 197.58B 236.55B 243.20B 197.80B 178.26B 189.89B 197.04B 195.66B 210.02B 225.74B
Gross Margin 36.17% 33.37% 31.66% 29.39% 28.02% 28.29% 29.60% 31.12% 32.03% 33.39%

High Capital Intensity over the past 10 years

CX spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

390.15% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in MXN. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 17.28B 23.17B 21.25B 6.66B 4.73B 3.20B 5.60B - 7.04B 9.78B
divided by
Net Income 25.75B 26.10B 2.28B 1.65B -16.49B -24.79B -11.22B -9.61B -5.68B 2.13B
Capital Expenditure Ratio 67.12% 88.79% 932.75% 403.58% -28.66% -12.90% -49.89% - -123.87% 458.51%

Inconsistent Dividend History over the past 10 years

CX has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in MXN. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 5.75B 6.64B 7.01B - - - - - - -
divided by
Shares Outstanding 780.04M 804.31M 829.05M 908.27M 999.15M 1.32B 1.44B 1.51B 1.50B 1.51B
Dividend Paid Per Share 0.61 0.69 0.70 - - - - - - -
Price at Year End 30.95 24.74 8.78 12.00 10.73 5.39 9.68 11.75 10.32 5.29
Dividend Yield 1.98% 2.77% 8.00% - - - - - - -

History of Stock Buybacks over the past 10 years

CX has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in MXN. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 780.04M 804.31M 829.05M 908.27M 999.15M 1.32B 1.44B 1.51B 1.50B 1.51B
Stock Bought Back - -3.02% -2.98% -8.72% -9.10% -24.26% -8.69% -4.49% 0.65% -0.41%
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