Cemex S.A.B. De C.V. Stock Hold Recommendation Reiterated (CX)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Cemex S.A.B. de C.V (NYSE: CX) has been reiterated by TheStreet Ratings as a hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, CX's share price has jumped by 63.91%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • CEMEX SAB DE CV has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CEMEX SAB DE CV continued to lose money by earning -$0.81 versus -$1.28 in the prior year. This year, the market expects an improvement in earnings (-$0.03 versus -$0.81).
  • The gross profit margin for CEMEX SAB DE CV is currently lower than what is desirable, coming in at 30.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.40% is significantly below that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Construction Materials industry. The net income has significantly decreased by 282.7% when compared to the same quarter one year ago, falling from -$126.85 million to -$485.49 million.

CEMEX, S.A.B. de C.V., through its subsidiaries, engages in the production, marketing, distribution, and sale of cement, ready-mix concrete, aggregates, and other construction materials worldwide. Cemex S.A.B. de C.V has a market cap of $12.3 billion and is part of the industrial goods sector and materials & construction industry. Shares are up 12.9% year to date as of the close of trading on Tuesday.

You can view the full Cemex S.A.B. de C.V Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

Shutterfly Shares Spike on Earnings; Infrastructure Stocks on the Move -- ICYMI

Shutterfly Shares Spike on Earnings; Infrastructure Stocks on the Move -- ICYMI

7 Stocks to Play for Trump's $1.5 Trillion Infrastructure Plan

7 Stocks to Play for Trump's $1.5 Trillion Infrastructure Plan

Potential Winners From Trump's Expanded Border Wall

Potential Winners From Trump's Expanded Border Wall

These Stocks Have Changed Direction

These Stocks Have Changed Direction

Trump Portfolio Beats S&P 500 in First 100 Days, Led by GEO Prison Stock

Trump Portfolio Beats S&P 500 in First 100 Days, Led by GEO Prison Stock