HCMLF - Holcim Is A Wonderful Business Which Is Now A Bit Overvalued
2024-04-15 15:58:40 ET
Summary
- Holcim is a really good business that enjoys higher than-sector median EBIT and net income margins.
- Future spin-offs of North American business may create another 20% gain for investors.
- Meanwhile, shareholders may enjoy a dividend yield of 3.54% and a yield of 2.2% from share buybacks this year.
- The management is prudent and delivering on their 2025 strategy.
Holcim ( HCMLF ) ( HCMLY ) is one of the top 3 largest cement producers in the world. It is a Swiss company active in more than 60 countries . The primary company listing is in Zurich, Switzerland, under the ticker HOLN , so if you want to buy the stock, I suggest that you do it there because the trading volume is usually above 1 million shares daily.
The company is reporting its results in Swiss francs, and I will also use this currency for this report. The results of the company are therefore influenced by currency movements, which are volatile, but as you can see from the chart below, in the last five years, the Swiss franc has strengthened against the US dollar and the Euro, which makes company results look weaker than they are....
Holcim Is A Wonderful Business Which Is Now A Bit Overvalued