Morningstar Rating

Stock Research and Analysis

by Kristoffer Inton

Bulls Say

Cemex has a footprint in several emerging markets, exposing it to longer-term robust construction demand growth.
Cemex has a meaningful footprint of cement plants, ready-mix plants, and aggregate quarries in the U.S., exposing it to the country’s recovering construction demand.
Cemex’s cement plants on both of Mexico’s coasts allow it to use cheap shipping to deliver to markets in the U.S., Caribbean, and Central and South America. Read more 

Bears Say

Cemex's financial health remains weak, with very high leverage and a low interest coverage ratio. With low average debt tenor, the company will need to explore asset sales, equity issuances, and other options to address its capital structure.
Cemex produces cement well below its total capacity, weakening the margin of the high-fixed-cost business.
Non-Mexican voters have no voting rights in regard to underlying Series A shares when investing in Cemex either through the ADSs or the CPOs. Read more 

Management

We assign Cemex a Poor stewardship rating. Historically, Cemex management had been unafraid to make big acquisitions fueled with debt, as it focused on growing the company from a regional producer to a global player. In 2004, the company acquired RMC   Read more 

Profile

Cemex is the largest ready-mix concrete company and one of the largest aggregates companies in the world. In 2013, the company sold roughly 65 million tons of cement, 55   Read more 

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