- With record earnings in 2021 and a lower market cap, the company's PE fell from 40 last year to 10 this year.
- Record earnings were pushed by Peru's impressive recovery from COVID, with construction as the most dynamic sector. It is unclear whether or not demand will continue at those levels.
- If demand is sustained, then Pacasmayo is an interesting play, both because of earnings yield and historic ratios.
- If not, then the earnings yield is not attractive, because the company can only grow with its region's GDP.
- Aggressive dividend distributions instead of debt repayment also reduce the company's freedom in a higher rate context.
For further details see:
Cementos Pacasmayo Seems Cheap, But Only On Record Earnings