MONTERREY, Mexico--(BUSINESS WIRE)--Rating agency Standard & Poor’s (S&P) announced today that it has upgraded Cemex’s long-term global scale issuer credit rating to Investment Grade (BBB-) due to its strong financial and operating performance, deleveraging strategy, and flexible capital allocation. “Achieving an investment-grade credit rating from S&P is a very important milestone for Cemex,” said Fernando A. González, CEO of Cemex. “While we had record results last year, this rating is recognition of s ...

1 As of December 31, 2023 and 2022, 13,068,000,000 shares correspond to the fixed portion, and 31,779,148,989 shares in 2023 and 32,441,076,423 shares in 2022 correspond to the variable portion. 2 Series "A" or Mexican shares must represent at least 64% of Cemex, S.A.B. de C.V.'s capital stock; Series "B" or free subscription shares must represent at most 36% of Cemex, S.A.B. de C.V.'s capital stock. 3 Shares repurchased under the share repurchase program authorized by the Parent Company's shareholders (not ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of a ...

Investors looking for stocks in the Building Products - Concrete and Aggregates sector might want to consider either Cemex (CX) or Martin Marietta (MLM) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors sto ...

Financial Data and Key Metrics Changes - Full year net sales increased by 8%, while EBITDA grew by 20%, reaching a record $3.35 billion, with EBITDA margin expanding by 2 percentage points [4][15] - Free cash flow after maintenance CapEx was $1.2 billion, growing by $655 million due to higher EBITDA and improved working capital management [8][48] - The leverage ratio declined by 0.8x to 2.06x, within investment-grade credit parameters, with a return on capital expanding by 1.5 percentage points to close to 14% [8][51] Business Line Data and Key Metrics Changes - Growth investments accounted for 10% of total EBITDA and 13% of incremental EBITDA, with Urbanization Solutions growing at a CAGR of 24% since 2019 [5][21] - In Mexico, both sales and EBITDA grew in the mid-teen percentage area, driven by strong formal sector demand [28] - The U.S. posted record full year EBITDA of over $1 billion, with a 37% increase despite lower volumes, driven by pricing strategy and growth investments [32] Market Data and Key Metrics Changes - Volume declines were noted in several markets, particularly in the U.S. due to weather and lower demand, while Mexico reported positive volumes [9][32] - EMEA experienced a 7% increase in full year EBITDA, with a 0.3 percentage point expansion in EBITDA margin despite a slowdown in construction activity [36] - South Central America and the Caribbean saw a rebound in sales and EBITDA, with cement prices increasing by 9% [40][42] Company Strategy and Development Direction - The company aims to focus on deleveraging and accelerating its bolt-on growth strategy while proposing a sustainable shareholder return program [3][24] - The Urbanization Solutions business is aligned with global construction trends, including decarbonization and circularity, presenting significant growth prospects [12][21] - The company plans to initiate a sustainable dividend program, proposing a 2024 dividend of $120 million, reflecting confidence in operating performance and free cash flow generation [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, particularly in Mexico and the U.S., expecting EBITDA growth between low to mid-single digits [54] - The company anticipates continued deceleration in cost inflation and aims to maintain and increase margins [54][56] - Management highlighted the importance of monitoring election dynamics in both Mexico and the U.S. as potential influences on demand [62][66] Other Important Information - The company achieved a 4% decline in Scope 1 emissions in 2023, reflecting progress in its decarbonization efforts [10][16] - The company was recognized by CDP on its A List for climate change disclosure, indicating strong transparency in environmental impact [4][11] Q&A Session All Questions and Answers Question: Outlook for volume expectations in Mexico and the U.S. - Management noted that while there are risks, strong demand from nearshoring and ongoing projects in Mexico support a positive outlook for volumes [62][64] Question: Pricing strategy for 2024 - The company plans to adjust pricing strategies based on inflation recovery, with potential for multiple price increases if necessary [76][78] Question: Strategic CapEx allocation and timing - Management confirmed that strategic CapEx is well-defined and projects are expected to be executed evenly throughout the year, focusing on climate action and aggregate replenishment [82][86] Question: Dividend policy evolution - The company aims to allocate about 10% of operating free cash flow to dividends, with expectations for growth as business performance improves [97][98] Question: Urbanization Solutions business and geographic breakdown - Management confirmed that the Urbanization Solutions business is significant, with expectations for more disclosure as it grows [116]

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Investors interested in stocks from the Building Products - Concrete and Aggregates sector have probably already heard of Cemex (CX) and Martin Marietta (MLM) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings esti ...

As of now, the market dynamics exhibit a mix of positive and cautionary signals, prompting investors to chalk out effective investment strategies. In 2023, the S&P 500 surged 24%, fueled by steady economic growth squashing recession fears. The Federal Reserve's pause on interest rate increases, driven by reduced price pressure, further buoyed market confidence.The stock market is surging during this earnings season, as evident from the S&P 500’s fourth consecutive record high yesterday. Possibly, the market ...

CEMEX, S.A.B. de C.V. (NYSE:CX) Q3 2023 Earnings Conference Call October 26, 2023 10:00 AM ET Lucy Rodriguez - Chief Communications Officer Ben Theurer - Barclays Operator And now I will turn the conference over to Lucy Rodriguez, Chief Communications Officer to begin. Lucy please proceed. And now I will hand it over to Fernando. Fernando Gonzalez We remain fairly committed to prioritizing our people's health and safety and as such, we are supporting in every possible way, our employees, their families and ...