Cementos Argos SA (CMTOY) AI Stock Analysis

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Cementos Argos SA

(OTC:CMTOY)

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Neutral 65 (OpenAI - 4o)

Rating:65Neutral

Price Target:

$13.50

▲(4.90% Upside)

Cementos Argos SA's overall score is driven by strong strategic initiatives and shareholder returns highlighted in the earnings call. However, the high P/E ratio suggests overvaluation, and technical indicators point to a bearish trend. Financial performance is stable but with room for improvement in profitability and cash flow.

Cementos Argos SA (CMTOY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.39B

Dividend Yield19.26%

Average Volume (3M)1.75K

Price to Earnings (P/E)75.3

Beta (1Y)0.22

Revenue Growth-43.34%

EPS Growth-18.99%

CountryUS

Employees4,235

SectorBasic Materials

Sector Strength58

IndustryConstruction Materials

Share Statistics

EPS (TTM)0.28

Shares Outstanding260,374,240

10 Day Avg. Volume200

30 Day Avg. Volume1,753

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.22

Price to Sales (P/S)0.53

P/FCF Ratio5.01

Enterprise Value/Market Cap0.41

Enterprise Value/Revenue<0.01

Enterprise Value/Gross Profit<0.01

Enterprise Value/Ebitda<0.01

Forecast

1Y Price Target

$13.50

Price Target Upside4.90% Upside

Rating ConsensusHold

Number of Analyst Covering1

Cementos Argos SA Business Overview & Revenue Model

Company DescriptionCementos Argos S.A. produces and markets cement, ready-mix concrete, clinker, aggregates, and related products in Colombia, the Caribbean, Central America, and the United States. The company also engages in the operation of seaports; and maritime transport and property management businesses. In addition, it exports its products. The company was founded in 1934 and is headquartered in Barranquilla, Colombia. Cementos Argos S.A. is a subsidiary of Grupo Argos S.A.

How the Company Makes MoneyCementos Argos generates revenue primarily through the sale of cement, ready-mix concrete, and aggregates. The company operates numerous production facilities and distribution centers, allowing it to serve a broad customer base. Key revenue streams include direct sales to construction companies, contractors, and retail consumers. Additionally, Cementos Argos benefits from strategic partnerships with other construction firms and government contracts for large infrastructure projects. The company's focus on operational efficiency, cost management, and sustainable practices also enhances profitability, while its expansion into new markets contributes to revenue growth.

Cementos Argos SA Earnings Call Summary

Earnings Call Date:Aug 13, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment due to significant strategic advancements and strong financial performance, despite some challenges in specific markets such as Colombia and Central America. The strategic initiatives, especially the spinoff and reentry into the U.S. market, and robust shareholder returns, provide a strong foundation for future growth.

Q2-2025 Updates

Positive Updates

Strategic Portfolio Spinoff

Completed the spinoff of Cementos Argos portfolio in Grupo SURA, becoming a pure player in the heavy business materials industry, with a dividend yield of 18% compared to the industry average of 2%.

U.S. Market Reentry

Acquired a 60% stake in a major aggregate asset in the Caribbean with significant reserves and access to a deepwater port, aiming for $100 million to $150 million additional EBITDA by 2030.

FTSE4Good Index Inclusion

Selected again to be part of the FTSE4Good Index, reflecting strong ESG practices aligned with global standards.

Strong Shareholder Returns

Achieved a total shareholder return of 480% in USD and 380% in Colombian pesos, with a consolidated dividend yield of 18% for 2025.

Improved Financial Performance

Reached a 23% EBITDA margin, an expansion of 225 basis points compared to 2024, despite a challenging construction environment.

Solid Cash Flow and Debt Management

Net debt-to-EBITDA ratio at minus 7x for the second quarter, reflecting a strong cash position.

Negative Updates

Decreased Volumes in Colombia

Revenues in Colombia decreased by 9.5% compared to 2024, mainly due to lower volumes in cement, ready-mix, and aggregates.

Challenging Market Conditions in Central America

Suffered a decrease in regional cement volumes by 4.8% year-to-date, with a contracted market in Panama and lower dispatches in Honduras.

Lagging Panamanian Market

Panama experienced a decrease in demand of around 12%, impacting overall performance.

Operational Challenges in Cartagena

Higher-than-expected maintenance costs and nonrecurring expenses impacted operations in the Cartagena plant.

Company Guidance

In the second quarter of 2025, Cementos Argos highlighted several key financial and strategic milestones. The company achieved a total shareholder return of 480% in U.S. dollars and 380% in Colombian pesos following the Grupo SURA portfolio distribution, and it reached a consolidated EBITDA margin of 22%, with a goal to exceed 25% within two years. Cementos Argos reported revenues of COP 1.28 trillion and a net profit of COP 245 billion, representing a 19.1% margin. The company distributed COP 500 billion in dividends, with an 18% yield, and executed 68% of its COP 500 billion share buyback program. Additionally, Cementos Argos advanced its strategy to reenter the U.S. market by acquiring a 60% stake in a major Caribbean aggregate asset, aiming to generate $100-$150 million in additional EBITDA by 2030. The company also maintained a strong net debt-to-EBITDA ratio of minus 7x due to proceeds from a recent transaction.

Cementos Argos SA Financial Statement Overview

Summary

Cementos Argos SA shows strong revenue growth and operational efficiency with robust EBIT and EBITDA margins. However, the net profit margin is relatively low, and there are challenges in maintaining cash flow growth.

Income Statement

Positive

Cementos Argos SA has demonstrated a strong revenue growth trajectory, with a notable increase in total revenue from 2022 to 2023 by 8.86%. The Gross Profit Margin for 2023 stands at 22.49%, indicating effective cost management. However, the Net Profit Margin for 2023 is relatively low at 2.52%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are robust at 12.89% and 20.76% respectively, indicating strong operational performance.

Balance Sheet

Positive

The company has a moderate Debt-to-Equity Ratio of 0.87 in 2023, reflecting a balanced approach to leveraging. However, the Return on Equity (ROE) is modest at 3.83%, suggesting that the company is not yet fully optimizing its equity base. The Equity Ratio of 42.82% indicates a healthy proportion of equity financing relative to total assets, contributing to financial stability.

Cash Flow

Positive

Cementos Argos SA shows a positive Free Cash Flow trend, with a Free Cash Flow to Net Income Ratio of 4.08 in 2023, highlighting strong cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is 6.75, demonstrating efficient cash flow management. However, the Free Cash Flow has decreased from the previous year, indicating challenges in maintaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.16T	5.30T	12.72T	11.68T	9.82T	9.00T
Gross Profit	1.33T	1.33T	2.86T	2.06T	1.91T	1.63T
EBITDA	660.29B	722.90B	2.64T	2.15T	2.14T	1.60T
Net Income	2.40T	5.52T	319.94B	142.29B	431.13B	78.19B
Balance Sheet
Total Assets	21.41T	19.94T	19.51T	23.27T	19.57T	18.57T
Cash, Cash Equivalents and Short-Term Investments	11.63T	1.07T	1.01T	1.26T	483.39B	612.01B
Total Debt	3.31T	3.90T	7.27T	8.21T	7.06T	7.51T
Total Liabilities	7.16T	6.00T	10.44T	11.20T	9.36T	9.86T
Stockholders Equity	13.54T	13.14T	8.36T	11.02T	9.25T	7.84T
Cash Flow
Free Cash Flow	190.99B	565.91B	1.30T	701.98B	904.44B	1.12T
Operating Cash Flow	313.91B	867.83B	2.16T	1.42T	1.36T	1.44T
Investing Cash Flow	11.89T	445.81B	-128.93B	-735.05B	329.95B	-158.01B
Financing Cash Flow	-1.53T	-2.33T	-1.65T	-476.37B	-1.86T	-1.04T

Cementos Argos SA Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price12.87

Price Trends

50DMA

12.07

Positive

100DMA

11.56

Positive

200DMA

10.93

Positive

Market Momentum

MACD

0.33

Positive

RSI

49.96

Neutral

STOCH

11.01

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMTOY, the sentiment is Neutral. The current price of 12.87 is below the 20-day moving average (MA) of 13.38, above the 50-day MA of 12.07, and above the 200-day MA of 10.93, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMTOY.

Cementos Argos SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAC	82 Outperform	$635.11M	10.64	16.29%	6.97%	3.95%	27.28%
TTAM	76 Outperform	$2.70B	―	―	0.79%	―	―
CX	73 Outperform	$13.91B	8.91	7.12%	0.92%	-9.62%	795.20%
EXP	73 Outperform	$7.41B	16.82	31.87%	0.44%	0.88%	-4.17%
CMTOY	65 Neutral	$3.39B	75.27	1.41%	19.26%	-43.34%	-18.99%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LOMA	58 Neutral	$1.05B	14.80	8.93%	―	-33.46%	-32.34%

* Basic Materials Sector Average

Performance Comparison

CMTOY

Cementos Argos SA

12.87

5.47

73.92%

CPAC

Cementos Pacasmayo SAA

7.19

1.86

34.90%

Cemex SAB

9.32

3.38

56.90%

EXP

Eagle Materials

229.62

-66.46

-22.45%

LOMA

Loma Negra Compania Industrial Argentina Sociedad Anonima

8.29

-0.17

-2.01%

TTAM

Titan America SA

15.10

-1.17

-7.19%

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: Sep 06, 2025