Now trading at a price of $6.0, Cemex has moved 6.0% so far today.
Cemex shares moved 22.2% over the last 52 weeks, with a high of $6.04 and a low of $3.2. During this time, the stock outperformed the S&P 500 index by 29.0%. As of January 2022, the company's 50-day average price is $5.0. CEMEX, S.A.B. de C. The mid-cap Industrials company has 43,535 full time employees and is based in San Pedro Garza García, Mexico. Cemex has not offered any dividends in the last year.
Good EPS Growth with a Highly Leveraged Balance Sheet:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $13,130 | $12,970 | $14,548 | $15,577 |
| Revenue Growth | n/a | -1.22% | 12.17% | 7.07% |
| Gross Margins | 32.8% | 32.2% | 32.1% | 31.0% |
| Gross Margins Growth | n/a | -1.83% | -0.31% | -3.43% |
| Operating Margins | 10.2% | 10.4% | 16.0% | 10.0% |
| Operating Margins Growth | n/a | 1.96% | 53.85% | -37.5% |
| Net Margins | 1.09% | -11.31% | 5.18% | 5.51% |
| Net Margins Growth | n/a | -1137.61% | 145.8% | 6.37% |
| Earnings Per Share | $0.09 | -$1.0 | $0.5 | $0.37 |
| EPS Growth | n/a | -1211.11% | 150.0% | -26.0% |
| Diluted Shares (MM) | 1,577 | 1,496 | 1,495 | 1,451 |
| Free Cash Flow (MM) | $586 | $987 | $862 | $415 |
| FCF Growth | n/a | 68.43% | -12.66% | -51.86% |
| Capital Expenditures (MM) | -$767 | -$591 | -$993 | -$1,060 |
| Net Debt / EBITDA | 4.06 | 3.72 | 2.1 | 5.99 |
Cemex Is Currently Fairly Valued:
Compared to the Industrials sector's average of 20.49, Cemex has a trailing twelve month P/E ratio of 16.2 and, according to its EPS guidance of 0.61, an expected P/E ratio of 9.8. Cemex's PEG ratio is 0.23 based on its 61.4% compound average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 18.0%, because the growth rate implied by Cemex's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 0.78, which still suggests that company's shares are possibly undervalued.
Furthermore, Cemex is likely undervalued in terms of its equity because its P/B ratio is 0.8 compared to its sector average of 3.78. The company's shares are now trading -22.8% below their Graham number, implying there is a margin of safety for the stock. We calculate the number according to this formula:
√(22.5 * EPS * book value per share) = √(22.5 * 0.37 * 7.25) = $7.77
Most of the Market Indicators on Cemex Are Negative:
18 analysts are following Cemex and have set target prices ranging from $4.7 to $9.5 per share. On average, they have given the company a rating of buy. At the current price of $6.0, CX is trading -7.69% away from its average analyst target price of $6.5 per share, implying an analyst consensus of some upside potential for the stock.
