Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA) AI Stock Analysis

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Loma Negra Compania Industrial Argentina Sociedad Anonima

(NYSE:LOMA)

Rating:76Outperform

Price Target:

$14.00

▲( 4.95% Upside)

Loma Negra receives a solid overall score of 75.5. The company's strong financial performance, particularly in profitability and cash management, is a major strength. Positive technical trends support potential short-term gains, though caution is advised due to overbought signals. While the valuation is fair, the lack of a dividend yield could be a drawback for some investors. Continued attention to revenue growth and debt management will be key for future performance.

Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.60B

Dividend YieldN/A

Average Volume (3M)347.37K

Price to Earnings (P/E)15.4

Beta (1Y)0.67

Revenue Growth-37.30%

EPS Growth32.91%

CountryUS

Employees2,885

SectorBasic Materials

Sector Strength63

IndustryConstruction Materials

Share Statistics

EPS (TTM)0.03

Shares Outstanding119,205,300

10 Day Avg. Volume350,936

30 Day Avg. Volume347,371

Financial Highlights & Ratios

PEG Ratio-0.07

Price to Book (P/B)0.37

Price to Sales (P/S)0.00

P/FCF Ratio30.56

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$14.40

Price Target Upside7.95% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Loma Negra Compania Industrial Argentina Sociedad Anonima Business Overview & Revenue Model

Company DescriptionLoma Negra Compania Industrial Argentina Sociedad Anonima (LOMA) is a leading cement manufacturer in Argentina, operating primarily within the construction materials sector. The company produces and distributes cement, concrete, and lime, catering to a wide range of customers from residential builders to large infrastructure projects. With a strong market presence, Loma Negra plays a vital role in Argentina's construction industry by providing essential materials for building and infrastructure development.

How the Company Makes MoneyLoma Negra makes money through the production and sale of cement, concrete, and lime, which are critical components for construction and infrastructure projects. The company's revenue model is based on manufacturing these materials and distributing them to various sectors, including residential, commercial, and industrial construction. Key revenue streams include the sale of cement and concrete to construction companies and distributors. Additionally, Loma Negra benefits from long-term contracts and partnerships with major construction firms and infrastructure developers, which provide stable and predictable revenue. The company's earnings are also influenced by Argentina's construction industry trends, economic conditions, and government infrastructure investment policies.

Loma Negra Compania Industrial Argentina Sociedad Anonima Financial Statement Overview

Summary

Overall, Loma Negra exhibits a solid financial performance with strong profitability and efficient cash management. While there are challenges in revenue growth, the company's low leverage and strong equity base provide a stable financial foundation. Continued focus on revenue expansion and prudent debt management will be crucial for sustaining long-term growth.

Income Statement

Positive

Loma Negra's income statement shows strong profitability with a TTM gross profit margin of 25.8% and a net profit margin of 15.3%. However, the company experienced a decline in total revenue compared to the previous year, indicating challenges in maintaining growth. Despite this, the company has maintained healthy EBIT and EBITDA margins, reflecting efficient cost management.

Balance Sheet

Positive

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.23, signifying low leverage. The equity ratio stands at 56.9%, indicating a strong equity base. However, total debt has increased slightly, which could pose risks if not managed effectively. Overall, the company's balance sheet reflects financial stability with manageable liabilities.

Cash Flow

Very Positive

Loma Negra demonstrates robust cash flow management with a high operating cash flow to net income ratio of 1.19. The free cash flow has shown consistent growth, and the free cash flow to net income ratio is strong at 0.51. This highlights the company's ability to generate cash efficiently, supporting future investments and debt obligations.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
687.14B	699.18B	422.16B	451.95B	446.87B	62.83B
	Gross Profit
177.38B	186.98B	105.79B	121.98B	141.15B	19.01B
	EBIT
111.62B	113.81B	67.24B	83.09B	102.85B	13.60B
	EBITDA
187.99B	169.01B	93.41B	118.52B	134.50B	18.62B
	Net Income Common Stockholders
105.34B	153.81B	10.31B	6.04B	39.95B	17.13B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.73B	8.55B	6.73B	15.29B	10.27B	6.60B
	Total Assets
638.84B	1.41T	638.84B	631.83B	204.24B	107.09B
	Total Debt
151.36B	174.09B	151.36B	68.00B	5.50B	10.52B
	Net Debt
146.33B	166.11B	146.33B	65.93B	4.86B	10.12B
	Total Liabilities
344.62B	615.21B	344.62B	270.76B	63.00B	38.57B
	Stockholders Equity
294.24B	793.34B	294.24B	360.46B	140.92B	68.10B
Cash Flow		Free Cash Flow
53.36B	51.67B	48.98B	65.89B	48.30B	3.90B
	Operating Cash Flow
125.41B	124.72B	85.03B	97.66B	91.29B	18.45B
	Investing Cash Flow
-71.86B	-72.89B	-35.83B	-14.69B	-53.65B	-2.36B
	Financing Cash Flow
-48.08B	-48.27B	-41.09B	-77.17B	-53.14B	-19.74B

Loma Negra Compania Industrial Argentina Sociedad Anonima Technical Analysis

Technical Analysis Sentiment

Positive

Last Price13.34

Price Trends

50DMA

11.19

Positive

100DMA

11.39

Positive

200DMA

10.29

Positive

Market Momentum

MACD

0.55

Negative

RSI

69.97

Neutral

STOCH

77.23

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOMA, the sentiment is Positive. The current price of 13.34 is above the 20-day moving average (MA) of 11.88, above the 50-day MA of 11.19, and above the 200-day MA of 10.29, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 69.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOMA.

Loma Negra Compania Industrial Argentina Sociedad Anonima Risk Analysis

Loma Negra Compania Industrial Argentina Sociedad Anonima disclosed 59 risk factors in its most recent earnings report. Loma Negra Compania Industrial Argentina Sociedad Anonima reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Loma Negra Compania Industrial Argentina Sociedad Anonima Peers Comparison

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USLM	78 Outperform	$2.98B	24.84	25.44%	0.20%	17.83%	50.28%
TGLS	78 Outperform	$4.03B	23.20	27.61%	0.61%	11.73%	6.58%
EXP	76 Outperform	$7.22B	16.02	33.52%	0.47%	0.64%	-1.15%
LOMA	76 Outperform	$1.60B	15.41	14.05%	―	-37.30%	32.91%
CPAC	75 Outperform	$528.45M	8.95	15.93%	8.83%	2.50%	15.20%
CX	73 Outperform	$10.58B	7.28	6.58%	1.18%	-8.41%	570.14%
Sector *	50 Neutral	$1.98B	-1.07	-21.34%	3.71%	2.03%	-30.65%

* Basic Materials Sector Average

Performance Comparison

LOMA

Loma Negra Compania Industrial Argentina Sociedad Anonima

13.34

6.50

95.03%

CPAC

Cementos Pacasmayo SAA

5.65

0.60

11.88%

Cemex SAB

7.00

-0.49

-6.54%

EXP

Eagle Materials

213.66

-20.97

-8.94%

USLM

United States Lime & Minerals

104.61

34.36

48.91%

TGLS

Tecnoglass

84.71

29.65

53.85%

Loma Negra Compania Industrial Argentina Sociedad Anonima Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q3-2024)

% Change Since: 16.30%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

The earnings call indicates a positive outlook with strong sequential improvements in industry volume and stable EBITDA margins despite a challenging economic environment. Cost management, reduced net debt, and increased cash generation are notable achievements. However, significant decreases in top line performance and volume contractions across various segments highlight ongoing challenges.

Q3-2024 Updates

Positive Updates

Strong Sequential Improvement in Industry Volume

Industry volume increased by 25% sequentially, indicating a recovery past the most challenging period.

Stable EBITDA Margin

Consolidated adjusted EBITDA margin stood at 24%, improving by 78 basis points year-over-year despite economic challenges.

Reduced Net Debt

Net debt decreased to $177 million, achieving a net debt-to-EBITDA ratio of 1.03x, down from 1.4x at the end of 2023.

Successful Cost Management

Cost control and operational flexibility allowed the company to mitigate the impact of higher seasonal energy costs.

Increase in Cash Generation

Cash generation from operational activities reached ARS 64 billion, up from ARS 45 billion in the same period of 2023.

Negative Updates

Decrease in Top Line and Cement Business Performance

The top line decreased by 21.2% mainly due to lower cement dispatches, with the cement, masonry cement, and lime segment declining by 21% in revenues.

Volume Contraction in Various Segments

Concrete and aggregates segments experienced a decline of 29.7% and 42.7% respectively, reflecting reduced construction activity.

Lower Net Profit Attributable to Owners

Net profit attributable to owners decreased to ARS 20.9 billion from ARS 22.9 billion in the third quarter of 2023 due to lower operational results.

Company Guidance

During the Loma Negra Third Quarter 2024 Conference Call, key guidance and metrics were highlighted by CEO Sergio Faifman and CFO Marcos Gradin. The company reported a 25% sequential increase in industry volume, although it remained below the previous year's level. Revenue decreased by 21.2% to ARS 180.7 billion, primarily due to lower cement dispatches, while consolidated adjusted EBITDA was $55 million or ARS 43 billion, reflecting an 18.5% year-over-year decline. The EBITDA margin stood at 24%, improving by 78 basis points year-over-year, despite seasonal factors like higher energy costs affecting margins. Net debt was reduced to $177 million, achieving a net debt-to-EBITDA ratio of 1.03x, down from 1.4x at the end of 2023. The company has also been focusing on cost management, especially in energy usage, and experienced a significant shift towards renewable energy, which comprised 66% of its energy mix, up from 39% the previous year.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.