CX  Cemex S.a.b. De C.v.

Exchange

NYSE

Sector

Capital Goods

Industry

Building Materials

Market Cap.

137.69B

Vuru Grade

44.22/100

Current Price

$9.18
-0.17 (-1.82%)

Growth Price

$50.78
Undervalued by 453.15%

Company Metrics

  • P/E 119.22
  • P/S 9.59
  • P/B 14.72
  • EPS 0.08
  • Cash ROIC 1.96%
  • Cash Ratio 0.14
  • Dividend 0 / 0%
  • Avg. Vol. 10.23M
  • Shares 549.08M
  • Market Cap. 137.69B

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

Trade of the Day: Cemex SAB de CV (ADR) (CX)
Investorplace.com - Sep 15, 2017
Today I'm recommending a bullish trade in Cemex SAB de CV (ADR) (NYSE:CX). While plenty of companies that stand to benefit from hurricane reconstruction got bid up before the storms, Cemex hasn't made any big move yet, and I think that kind of stock ...
Cemex SAB de CV ADR
Wall Street Journal - Feb 11, 2011
News Cemex S.A.B. de C.V. ADRCX. Significant News Only. 10 hours ago; Press Release. CEMEX Upgraded by S&P Global Ratings for the Second Time in 2017.
9.18
MarketWatch - Jun 15, 2009
Cemex S.A.B. de C.V. ADR. CEMEX SAB de CV engages in the construction industry through the production, distribution, marketing, and sale of cement, ready-mix concrete and aggregates.
A Lack Of Catalysts Sinks Cemex Rating
Benzinga - Aug 29, 2017
Analysts at Bank of America parted ways with their bullish stance on Cemex SAB de CV (ADR) (NYSE: CX), a Mexico-based company that mostly works in the production, distribution, marketing and sale of cement and other products.
Analyzing Analyst Recommendations: CEMEX, SAB de CV (CX), Eaton Corporation ... - Analyst Journal
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.
Cemex SAB de CV (ADR) (NYSE:CX) Reports Organizational Changes
FinancialsTrend - Dec 4, 2015
Cemex SAB de CV (ADR) (NYSE:CX) reported changes to its senior level firm, effective January 2016. All of the personnel named below are existing members of executive committee that have had considerable global operating management experience.
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.
Earnings Scheduled For April 26, 2017
Benzinga - Apr 26, 2017
Cemex SAB de CV (ADR) (NYSE: CX) is projected to report quarterly earnings at $0.05 per share on revenue of $3.20 billion.
Benzinga's Top Upgrades, Downgrades For August 29, 2017
Benzinga - Aug 29, 2017
Analysts at Bank of America downgraded Cemex SAB de CV (ADR) (NYSE: CX) from Buy to Neutral. Cemex shares fell 0.11 percent to close at $9.12 on Monday.
Why Wells Fargo & Co (WFC), United States Steel Corporation (X) and Infosys ...
Investorplace.com - Apr 13, 2017
... a hit on Thursday, however. Mexican cement company Cemex SAB de CV (ADR) (NYSE:CX) fell 2.5%, and U.S. Silica Holdings Inc (NYSE:SLCA) was off 5.9%.
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.

$9.18 Current Price

$50.78 Growth Price (DCF)

Undervalued by 453.15%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: -6.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$1.94 Book Price

Overvalued by 78.88%


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 $1.96 of cash for every $100 invested.
Figures in MXN. Fiscal year ends in December
20122013201420152016
Free Cash Flow 27.00M - 4.96B 9.32B 33.14B
divided by
Invested Capital 412.50B 421.39B 422.15B 454.41B 506.06B
Cash ROIC 0.01% - 1.17% 2.05% 6.55%

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 $1.79 loss for every $100 of Shareholders' Equity.
Figures in MXN. Fiscal year ends in December
20122013201420152016
Net Income -11.22B -9.61B -5.68B 2.13B 15.21B
divided by
Stockholders' Equity 141.11B 133.38B 131.10B 143.48B 167.77B
Return on Equity -7.95% -7.21% -4.33% 1.49% 9.06%

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
2007200820092010201120122013201420152016
Free Cash Flow 22.43B 10.02B 28.10B 17.11B 3.29B 27.00M - 4.96B 9.32B 33.14B

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
2007200820092010201120122013201420152016
Cash 8.67B 13.60B 14.10B 8.35B 16.13B 12.48B 15.18B 12.59B 15.28B 11.56B
Current Assets 61.21B 68.20B 56.77B 54.57B 69.20B 63.32B 69.05B 70.96B 73.67B 92.03B
Total Assets 542.03B 623.62B 582.29B 515.10B 541.65B 478.77B 496.13B 514.96B 542.26B 599.73B
Current Liabilities 83.34B 152.74B 49.21B 55.12B 64.53B 53.79B 59.56B 80.23B 72.58B 82.12B
Total Liabilities 378.94B 432.93B 368.41B 320.92B 386.55B 337.66B 362.75B 383.86B 398.79B 431.95B
Stockholder' Equity 163.08B 190.69B 213.87B 194.18B 155.10B 141.11B 133.38B 131.10B 143.48B 167.77B
Current Ratio 0.73 0.45 1.15 0.99 1.07 1.18 1.16 0.88 1.02 1.12
TL-to-TA 0.70 0.69 0.63 0.62 0.71 0.71 0.73 0.75 0.74 0.72

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
2007200820092010201120122013201420152016
Retained Earnings 200.15B 85.40B 81.06B 79.79B 26.86B 10.84B 29.40B 21.78B 7.38B 1.61B
Retained Earnings Growth - -57.33% -5.08% -1.56% -66.34% -59.64% 171.18% -25.91% -66.11% -78.16%

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.

$1.58 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in MXN. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 26.10B 2.28B 1.65B -16.49B -24.79B -11.22B -9.61B -5.68B 2.13B 15.21B
divided by
Revenue 236.55B 243.20B 197.80B 178.26B 189.89B 197.04B 195.66B 210.02B 225.74B 250.91B
Net Profit Margin 11.03% 0.94% 0.83% -9.25% -13.05% -5.69% -4.91% -2.70% 0.94% 6.06%

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.

$31.23 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
2007200820092010201120122013201420152016
Gross Profit 78.93B 76.99B 58.13B 49.95B 53.72B 58.33B 60.89B 67.28B 75.37B 89.03B
divided by
Revenue 236.55B 243.20B 197.80B 178.26B 189.89B 197.04B 195.66B 210.02B 225.74B 250.91B
Gross Margin 33.37% 31.66% 29.39% 28.02% 28.29% 29.60% 31.12% 32.03% 33.39% 35.48%

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.

384.52% 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
2007200820092010201120122013201420152016
Capital Expenditure 23.17B 21.25B 6.66B 4.73B 3.20B 5.60B - 7.04B 9.78B 5.93B
divided by
Net Income 26.10B 2.28B 1.65B -16.49B -24.79B -11.22B -9.61B -5.68B 2.13B 15.21B
Capital Expenditure Ratio 88.79% 932.75% 403.58% -28.66% -12.90% -49.89% - -123.87% 458.51% 38.98%

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
2007200820092010201120122013201420152016
Dividend Paid 6.64B 7.01B - - - - - - - -
divided by
Shares Outstanding 804.31M 829.05M 908.27M 999.15M 1.32B 1.44B 1.51B 1.50B 1.51B 549.08M
Dividend Paid Per Share 0.69 0.70 - - - - - - - -
Price at Year End 24.74 8.78 12.00 10.73 5.39 9.68 11.75 10.32 5.29 8.03
Dividend Yield 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
2007200820092010201120122013201420152016
Shares Outstanding 804.31M 829.05M 908.27M 999.15M 1.32B 1.44B 1.51B 1.50B 1.51B 549.08M
Stock Bought Back - -2.98% -8.72% -9.10% -24.26% -8.69% -4.49% 0.65% -0.41% 174.84%
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