CX - CEMEX: Volume Recovery And Strong Pricing To Drive Growth In 2024

2024-02-13 11:42:11 ET

Summary

• Cemex is experiencing strong volume recovery in its Mexican business across most of its products.
• The company's margin profile has improved significantly, supported by the strong performance of its Urbanization Solutions business and pricing strategies.
• Cemex's stock is trading at an attractive price point, offering a significant discount compared to its historical average and the sector median.

Thesis

CEMEX, S.A.B. de C.V. ( CX ) is experiencing strong volume recovery primarily in its Mexican business. The company implemented a further price increase in January, which should drive the company's top line in the coming quarters, despite a weak demand environment in the EMEA region due to a slowdown in construction activity. The company's long-term scenario is also good due to some favorable trends in the market where Cemex operates....

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