Holcim (HOLN) AI Stock Analysis

• Market Cap: CHF35.07B
• Dividend Yield: 2.42%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 2.3
• Beta (1Y): 0.90
• Revenue Growth: -19.77%
• EPS Growth: N/A
• Country: CH
• Employees: 62,391
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 1.64
• Shares Outstanding: 566,875,500
• 10 Day Avg. Volume: 1,261,722
• 30 Day Avg. Volume: 1,187,889
• PEG Ratio: -6.88
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 12.13
• 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: CHF68.93
• Price Target Upside: 5.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: CHF75.00 ▲(15.21% Upside)

Holcim's overall stock score reflects a strong valuation and positive technical indicators, despite mixed financial performance. The low P/E ratio and solid dividend yield enhance its attractiveness, while the technical analysis indicates bullish momentum. However, concerns about declining revenue and cash flow growth rates temper the score.

Positive Factors

Negative Factors

Holcim Business Overview & Revenue Model

Company Description

Holcim Ltd, together with its subsidiaries, operates as a building materials and solutions company in the Asia Pacific, Europe, Latin America, the Middle East, Africa, and North America. It operates through four segments: Cement, Aggregates, Ready-mix Concrete, and Solutions & Products. The company offers cement, hydraulic binders, clinker, and other cementitious materials; aggregates, such as crushed stone, gravel, and sand; and ready-mix concrete, precast concrete products, asphalts, and mortars. In addition, it engages in the provision of contracting and other services; and retail activities, as well as waste management services. Its products are used in infrastructure projects, such as roads, mines, ports, dams, data centers, stadiums, wind farms, and electric power plants; building projects comprising individual housing, collective housing, office buildings, industrial and commercial buildings, and public buildings; and affordable housing. The company was formerly known as LafargeHolcim Ltd and changed its name to Holcim Ltd in May 2021. Holcim Ltd was founded in 1833 and is headquartered in Zug, Switzerland.

How the Company Makes Money

Holcim generates revenue primarily through the sale of its core products: cement, aggregates, and ready-mix concrete. The cement segment is the largest revenue contributor, as it is essential for construction projects, ranging from residential buildings to large infrastructure initiatives. Aggregates, which include sand, gravel, and crushed stone, are crucial for concrete production and road construction, providing another significant revenue stream. Ready-mix concrete, a blend of cement, aggregates, and water, is sold to construction companies for immediate use on job sites. Holcim also benefits from partnerships with large construction firms and government contracts, which often lead to long-term supply agreements. Additionally, the company is increasingly focusing on sustainability initiatives, such as producing low-carbon cement and innovative construction solutions, which are expected to drive future growth and enhance profitability.

Holcim Financial Statement Overview

Summary

Holcim's financial performance is mixed. Strong profitability margins are offset by declining revenue and free cash flow growth rates. The balance sheet is stable with moderate leverage, but the return on equity has decreased, indicating a need for improvement in generating shareholder returns.

Income Statement

Holcim's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 10.32%, which is concerning. However, the company maintains a solid gross profit margin of 42.85% and a net profit margin of 9.49%, showcasing its ability to control costs and generate profits. The EBIT and EBITDA margins are also healthy at 14.98% and 21.20%, respectively, indicating operational efficiency. Despite the revenue decline, profitability metrics remain robust.

Balance Sheet

Holcim's balance sheet reflects a stable financial position. The debt-to-equity ratio stands at 0.47, indicating a moderate level of leverage, which is manageable. The return on equity (ROE) is 4.57% in the TTM, showing a decrease from previous years, which suggests a need for improvement in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears strong relative to its total assets.

Cash Flow

The cash flow statement reveals some challenges. The free cash flow growth rate is negative at -4.45% in the TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is low at 0.10, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is 19.54%, which is reasonable, showing some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.46B	26.41B	27.01B	29.19B	26.83B	23.14B
Gross Profit	9.53B	11.68B	11.50B	11.61B	11.54B	9.69B
EBITDA	4.97B	5.97B	6.45B	6.98B	6.04B	5.14B
Net Income	15.42B	2.93B	3.06B	3.31B	2.30B	1.70B
Balance Sheet
Total Assets	33.01B	54.28B	52.69B	57.60B	59.88B	53.22B
Cash, Cash Equivalents and Short-Term Investments	4.24B	5.35B	6.09B	9.83B	6.69B	5.19B
Total Debt	9.81B	12.92B	13.12B	14.91B	16.61B	13.76B
Total Liabilities	17.69B	26.33B	25.90B	27.99B	29.41B	24.60B
Stockholders Equity	14.64B	27.24B	26.00B	28.67B	27.68B	26.07B
Cash Flow
Free Cash Flow	3.67B	4.02B	3.96B	3.01B	3.51B	3.50B
Operating Cash Flow	5.01B	5.67B	5.47B	4.56B	5.04B	4.62B
Investing Cash Flow	-2.96B	-2.04B	-3.47B	2.08B	-4.71B	-1.23B
Financing Cash Flow	-622.00M	-4.37B	-5.22B	-3.25B	1.11B	-1.89B

Holcim Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 65.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:HOLN, the sentiment is Neutral. The current price of 65.1 is below the 20-day moving average (MA) of 67.80, below the 50-day MA of 67.04, and above the 200-day MA of 53.07, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 37.88 is Neutral, neither overbought nor oversold. The STOCH value of 31.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:HOLN.

Holcim Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLN	73 Outperform	CHF35.07B	2.33	12.79%	2.42%	-19.77%	―
SIKA	70 Outperform	CHF28.98B	23.69	―	1.99%	-1.05%	―
CLN	64 Neutral	$2.44B	21.51	5.38%	5.68%	-2.40%	38.08%
EMSN	64 Neutral	CHF13.39B	28.99	22.08%	3.01%	-4.25%	-0.03%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Holcim Corporate Events

Holcim Completes Divestment of Nigerian Business

Holcim has finalized the sale of its 83.81% stake in Lafarge Africa PLC to Huaxin Cement for USD 1 billion, enhancing its capital allocation for growth. This divestment allows Holcim to focus on its strategic priorities while ensuring the continued development of the business in Nigeria under Huaxin Cement’s ownership.

The most recent analyst rating on (CH:HOLN) stock is a Hold with a CHF60.00 price target. To see the full list of analyst forecasts on Holcim stock, see the CH:HOLN Stock Forecast page.