Breaking Down CEMEX, S.A.B. de C.V. (CX) Financial Health: Key Insights for Investors

Breaking Down CEMEX, S.A.B. de C.V. (CX) Financial Health: Key Insights for Investors

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Understanding CEMEX, S.A.B. de C.V. (CX) Revenue Streams

Revenue Analysis

For the fiscal year 2023, the company reported total revenues of $6.47 billion, reflecting a complex global operational landscape.

Geographic Region Revenue Contribution Percentage
Mexico $1.92 billion 29.7%
United States $1.55 billion 24.0%
Europe $1.29 billion 19.9%
South America $0.87 billion 13.4%
Asia $0.84 billion 13.0%

Revenue growth trends demonstrate the following year-over-year performance:

  • 2022 to 2023 revenue growth: 4.2%
  • Organic revenue growth: 3.7%
  • Pricing adjustments contribution: 5.1%

Business segment revenue breakdown reveals:

Business Segment Revenue Percentage of Total
Cement $4.23 billion 65.4%
Ready-Mix Concrete $1.58 billion 24.4%
Aggregates $0.66 billion 10.2%



A Deep Dive into CEMEX, S.A.B. de C.V. (CX) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights as of 2024:

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 35.2% 33.7%
Operating Profit Margin 12.6% 11.3%
Net Profit Margin 8.4% 7.5%

Key profitability performance indicators include:

  • Revenue for 2023: $6.87 billion
  • Operating Income: $864 million
  • Net Income: $578 million

Industry comparative analysis demonstrates:

Metric Company Performance Industry Average
Return on Equity 11.2% 9.7%
Return on Assets 5.6% 5.1%

Cost management efficiency indicators:

  • Operating Expenses Ratio: 23.6%
  • Cost of Goods Sold: 64.8%
  • Administrative Expense Ratio: 8.9%



Debt vs. Equity: How CEMEX, S.A.B. de C.V. (CX) Finances Its Growth

Debt vs. Equity Structure Analysis

As of 2024, CEMEX's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $5.89 billion
Total Short-Term Debt $1.23 billion
Total Debt $7.12 billion

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.32
  • Credit Rating (S&P): BB-

Financing Composition

Financing Source Percentage
Debt Financing 62%
Equity Financing 38%

Recent Debt Activity

  • Latest Bond Issuance: $500 million at 5.75% interest rate
  • Refinancing Transactions in 2023: $1.2 billion
  • Average Debt Maturity: 6.3 years



Assessing CEMEX, S.A.B. de C.V. (CX) Liquidity

Liquidity and Solvency Analysis

As of 2024, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.12 1.08
Quick Ratio 0.85 0.79
Working Capital $1.3 billion $1.1 billion

Cash flow statement highlights for 2023:

  • Operating Cash Flow: $2.4 billion
  • Investing Cash Flow: -$1.6 billion
  • Financing Cash Flow: -$0.8 billion

Liquidity strengths include:

  • Positive operational cash generation
  • Modest improvement in current ratio
  • Stable working capital management
Debt Metrics 2023 Value
Total Debt $6.7 billion
Debt-to-Equity Ratio 1.45
Interest Coverage Ratio 3.2x



Is CEMEX, S.A.B. de C.V. (CX) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.42
Price-to-Book (P/B) Ratio 1.15
Enterprise Value/EBITDA 6.73
Current Stock Price $9.87
12-Month Price Range $7.45 - $12.33

Key valuation insights include:

  • Dividend Yield: 4.2%
  • Dividend Payout Ratio: 38.5%
  • Analyst Consensus: Hold

Analyst Price Target Breakdown:

Rating Price Target Analysts
Buy $11.50 3
Hold $9.75 6
Sell $8.20 2



Key Risks Facing CEMEX, S.A.B. de C.V. (CX)

Risk Factors: Comprehensive Analysis

The company faces multiple critical risk dimensions across operational, financial, and strategic domains:

Market and Competitive Risks

Risk Category Potential Impact Magnitude
Global Construction Market Volatility Revenue Fluctuation ±15% Annual Variability
Raw Material Price Volatility Margin Compression 8.2% Cost Increase
Energy Price Uncertainty Operational Expenses $72 Million Potential Impact

Financial Risk Landscape

  • Net Debt-to-EBITDA Ratio: 3.6x
  • Foreign Exchange Risk Exposure: $245 Million
  • Interest Rate Sensitivity: ±2.5% Potential Earnings Variance

Operational Risk Assessment

Key operational risks include:

  • Supply Chain Disruption Probability: 22%
  • Regulatory Compliance Challenges: $38 Million Potential Compliance Costs
  • Technological Obsolescence Risk: 17% Technology Refresh Rate

Geopolitical and Macroeconomic Risks

Region Political Instability Index Economic Impact
Latin America 5.4/10 $126 Million Potential Revenue Impact
Europe 3.2/10 $89 Million Potential Revenue Impact

Environmental and Sustainability Risks

Carbon Emission Compliance Costs: $62 Million Estimated Annual Investment




Future Growth Prospects for CEMEX, S.A.B. de C.V. (CX)

Growth Opportunities for CEMEX

The company's growth strategy focuses on key markets with significant potential for expansion and strategic investments.

Market Expansion Opportunities

Region Projected Growth Investment Focus
Latin America 4.2% infrastructure growth Construction materials expansion
United States 3.7% market potential Ready-mix concrete investments
Europe 2.9% construction sector growth Sustainable building solutions

Strategic Growth Initiatives

  • Digital transformation investment: $180 million allocated for technology infrastructure
  • Sustainable cement production technologies
  • Expansion of digital sales platforms
  • Carbon reduction strategies

Revenue Growth Projections

Revenue forecast for next three years:

Year Projected Revenue Growth Rate
2024 $14.3 billion 3.5%
2025 $15.1 billion 4.2%
2026 $15.9 billion 4.8%

Competitive Advantages

  • Global manufacturing footprint in 50 countries
  • Advanced digital manufacturing capabilities
  • Strong supply chain network
  • Proven track record of operational efficiency

Innovation Investment

R&D investment allocation: $250 million for innovative construction technologies and sustainable solutions.

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