CEMEX (CX) Stock Is Up Today After Completing Transactions With HolcimBy twocents@thestreet (Shawn Ingram) NEW YORK (TheStreet) -- Shares of CEMEX were gaining 2.1% to $9.80 Tuesday after the cement company announced that it closed a series of transactions with Holcim. CEMEX acquired all of Holcims assets in the Czech Republic as well as Holcims GadorBy twocents@thestreet (Shawn Ingram) NEW YORK (TheStreet) -- Shares of CEMEX were gaining 2.1% to $9.80 Tuesday after the cement company announced that it closed a series of transactions with Holcim. CEMEX acquired all of Holcims assets in the Czech Republic as well as Holcims Gador cement plant and Yeles cement grinding station in Spain. The company also divested its assets in western Germany to the Switzerland-based company as part of the transactions. CEMEX paid 45 million euros in cash to Holcim as part of the transactions, and expects a recurring improvement in its EBITDA of about $20 million to $30 million, including synergies. Exclusive Report: Jim Cramers Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates CEMEX SAB DE CV as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: We rate CEMEX SAB DE CV (CX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The companys strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins. Highlights from the analysis by TheStreet Ratings Team goes as follows: CEMEX SAB DE CV has improved earnings per share by 36.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CEMEX SAB DE CV continued to lose money by earning -$0.66 versus -$0.76 in the prior year. This year, the market expects an improvement in earnings (-$0.29 versus -$0.66). CX, with its decline in revenue, underperformed when compared the industry average of 13.7%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the companys bottom line, with increasing earnings per share. The gross profit margin for CEMEX SAB DE CV is currently lower than what is desirable, coming in at 34.14%. Regardless of CXs low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -2.53% trails the industry average. CX has underperformed the S&P 500 Index, declining 10.46% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time. You can view the full analysis from the report here: CX Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Click to view a price quote on CX. Click to research the Materials & Construction industry. ift.tt/1gB4pon
Posted on: Tue, 06 Jan 2015 20:58:07 +0000
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