Cementir Holding S.p.A. (CEM) AI Stock Analysis

• Market Cap: €2.19B
• Dividend Yield: 2.02%
• Average Volume (3M): 62.74K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.55
• Revenue Growth: 0.39%
• EPS Growth: -14.36%
• Country: IT
• Employees: 3,082
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.47
• Shares Outstanding: 159,120,000
• 10 Day Avg. Volume: 54,472
• 30 Day Avg. Volume: 62,741
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €15.20
• Price Target Upside: 8.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: €15.50 ▲(10.71% Upside)

Cementir Holding S.p.A. demonstrates strong financial performance with robust profitability and effective cash flow management, contributing significantly to the overall score. The technical analysis indicates a neutral market stance, while the valuation suggests the stock is reasonably priced with a decent dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Cash Flow Management

Cementir's strong cash flow management and growth in free cash flow demonstrate its ability to efficiently convert profits into cash, supporting sustainable operations and potential for reinvestment in growth opportunities.

Low Leverage

A low debt-to-equity ratio indicates Cementir's prudent financial management, reducing financial risk and enhancing its ability to navigate economic fluctuations without significant financial strain.

Profitability

Cementir's strong profitability, reflected in high gross and net profit margins, underscores its efficient operational management and ability to maintain competitive pricing and cost control.

Negative Factors

Declining EPS Growth

The negative EPS growth indicates challenges in maintaining earnings momentum, potentially impacting investor confidence and the company's ability to fund future growth initiatives.

Slow Revenue Growth

Minimal revenue growth suggests limited expansion in market share or product demand, which could hinder long-term growth prospects unless new strategies or markets are pursued.

Lack of Earnings Call Data

The absence of earnings call data limits transparency and investor insight into management's strategic direction and operational performance, potentially affecting investor relations and confidence.

Cementir Holding S.p.A. Business Overview & Revenue Model

Company Description

Cementir Holding S.p.A. is an Italian multinational company specializing in the production and distribution of cement, ready-mix concrete, aggregates, and other construction materials. Operating primarily in Europe, North America, and the Middle East, Cementir plays a significant role in the construction industry, offering a wide range of products including white and gray cement, as well as environmentally friendly solutions. The company focuses on sustainable practices and innovation to meet the growing demands of the construction sector.

How the Company Makes Money

Cementir Holding generates revenue primarily through the sale of cement and ready-mix concrete, which are its core products. The company operates various production plants and distribution networks, allowing it to serve a diverse customer base, including contractors, builders, and wholesale distributors. Key revenue streams include direct sales to construction firms, retail sales of construction materials, and long-term supply contracts with major construction projects. Additionally, Cementir benefits from partnerships with local and international construction firms, which can lead to substantial contracts and increased market presence. The company also focuses on operational efficiency and cost management to enhance profitability, while its commitment to sustainability may attract clients looking for eco-friendly building solutions.

Cementir Holding S.p.A. Financial Statement Overview

Summary

Cementir Holding S.p.A. is financially robust with strong profitability, a stable balance sheet, and effective cash flow management. The company has shown consistent growth in revenue and profit margins, supported by low leverage and a strong equity position. The cash flow metrics further underscore its ability to generate cash and sustain operations. Potential risks are minimal given the low debt levels and strong equity base.

Income Statement

Cementir Holding S.p.A. demonstrates strong profitability with a consistent increase in gross and net profit margins. The gross profit margin stands at 58.7%, and the net profit margin is 11.8% for 2024. Revenue growth has been stable with a slight 1.1% increase from the previous year, indicating steady demand. EBIT and EBITDA margins are robust at 46.1% and 23.6%, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.12, suggesting low leverage and financial risk. The equity ratio is healthy at 62.3%, indicating a strong capital structure. Return on Equity (ROE) is commendable at 11.7%, showcasing effective use of shareholder funds to generate profits.

Cash Flow

Cementir Holding S.p.A. shows strong cash flow management with a 11.6% growth in free cash flow, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.7, suggesting strong cash generation from core operations. The free cash flow to net income ratio is 1.07, indicating efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.69B	1.70B	1.72B	1.36B	1.22B
Gross Profit	744.25M	606.85M	967.88M	919.68M	817.50M	755.58M
EBITDA	321.73M	439.28M	434.12M	371.68M	290.24M	259.59M
Net Income	59.79M	201.64M	201.36M	162.29M	113.32M	102.01M
Balance Sheet
Total Assets	0.00	2.76B	2.52B	2.49B	2.11B	2.23B
Cash, Cash Equivalents and Short-Term Investments	485.60M	503.24M	412.39M	355.76M	282.54M	413.56M
Total Debt	0.00	183.15M	189.02M	297.01M	315.10M	529.18M
Total Liabilities	-1.86B	899.34M	871.36M	971.20M	883.50M	1.05B
Stockholders Equity	1.86B	1.72B	1.50B	1.37B	1.09B	1.06B
Cash Flow
Free Cash Flow	0.00	216.26M	193.81M	176.33M	137.30M	175.76M
Operating Cash Flow	0.00	343.90M	300.38M	281.40M	218.98M	234.22M
Investing Cash Flow	0.00	-109.32M	-91.76M	-138.98M	-72.67M	-60.21M
Financing Cash Flow	0.00	-164.20M	-139.01M	-70.27M	-284.40M	-79.53M

Cementir Holding S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CEM, the sentiment is Neutral. The current price of 14 is below the 20-day moving average (MA) of 14.11, above the 50-day MA of 13.75, and above the 200-day MA of 13.24, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 30.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:CEM.

Cementir Holding S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEM	73 Outperform	€2.19B	12.10	10.89%	2.02%	0.39%	-14.36%
BZU	73 Outperform	8.82B	9.43	14.27%	1.47%	5.34%	-3.46%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%