CEMATRIX CORP (CEMX.CA) Stock Fundamental Analysis
TSX:CEMX - Toronto Stock Exchange - CA15120R1038 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to CEMX. CEMX was compared to 3 industry peers in the Construction Materials industry. While CEMX seems to be doing ok healthwise, there are quite some concerns on its profitability. CEMX is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
CEMX had positive earnings in the past year.
CEMX had a positive operating cash flow in the past year.
CEMX had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: CEMX reported negative operating cash flow in multiple years.
1.2 Ratios
CEMX has a worse Return On Assets (3.65%) than 66.67% of its industry peers.
CEMX has a Return On Equity of 4.37%. This is in the lower half of the industry: CEMX underperforms 66.67% of its industry peers.
CEMX's Return On Invested Capital of 4.66% is on the low side compared to the rest of the industry. CEMX is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 4.37% | ||
| ROIC | 4.66% |
ROA(3y)-4.89%
ROA(5y)-9.88%
ROE(3y)-7.21%
ROE(5y)-292.78%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CEMX has a Profit Margin of 3.46%. This is in the lower half of the industry: CEMX underperforms 66.67% of its industry peers.
CEMX has a worse Operating Margin (5.10%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CEMX has grown nicely.
CEMX's Gross Margin of 26.43% is on the low side compared to the rest of the industry. CEMX is outperformed by 66.67% of its industry peers.
In the last couple of years the Gross Margin of CEMX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.1% | ||
| PM (TTM) | 3.46% | ||
| GM | 26.43% |
OM growth 3YN/A
OM growth 5Y5.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.77%
GM growth 5Y-2.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CEMX is destroying value.
CEMX has more shares outstanding than it did 1 year ago.
CEMX has more shares outstanding than it did 5 years ago.
CEMX has a better debt/assets ratio than last year.
2.2 Solvency
CEMX has an Altman-Z score of 3.49. This indicates that CEMX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CEMX (3.49) is worse than 66.67% of its industry peers.
CEMX has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
CEMX has a worse Debt to FCF ratio (0.77) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that CEMX is not too dependend on debt financing.
CEMX has a worse Debt to Equity ratio (0.07) than 66.67% of its industry peers.
Even though the debt/equity ratio score it not favorable for CEMX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 3.49 |
ROIC/WACC0.55
WACC8.43%
2.3 Liquidity
CEMX has a Current Ratio of 4.92. This indicates that CEMX is financially healthy and has no problem in meeting its short term obligations.
CEMX has a Current ratio of 4.92. This is in the better half of the industry: CEMX outperforms 66.67% of its industry peers.
A Quick Ratio of 4.72 indicates that CEMX has no problem at all paying its short term obligations.
CEMX's Quick ratio of 4.72 is fine compared to the rest of the industry. CEMX outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.92 | ||
| Quick Ratio | 4.72 |
3. Growth
3.1 Past
CEMX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 164.29%, which is quite impressive.
CEMX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.00%.
CEMX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.86% yearly.
EPS 1Y (TTM)164.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-63.97%
Revenue 1Y (TTM)6%
Revenue growth 3Y26.12%
Revenue growth 5Y24.86%
Sales Q2Q%-50.26%
3.2 Future
Based on estimates for the next years, CEMX will show a very strong growth in Earnings Per Share. The EPS will grow by 144.95% on average per year.
The Revenue is expected to grow by 22.57% on average over the next years. This is a very strong growth
EPS Next Y300%
EPS Next 2Y144.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18.98%
Revenue Next 2Y22.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.50, which indicates a rather expensive current valuation of CEMX.
Compared to the rest of the industry, the Price/Earnings ratio of CEMX indicates a slightly more expensive valuation: CEMX is more expensive than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, CEMX is valued a bit cheaper.
A Price/Forward Earnings ratio of 4.78 indicates a rather cheap valuation of CEMX.
100.00% of the companies in the same industry are more expensive than CEMX, based on the Price/Forward Earnings ratio.
CEMX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 4.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEMX is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CEMX indicates a rather cheap valuation: CEMX is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 5.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CEMX's earnings are expected to grow with 144.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y144.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for CEMX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CEMX (3/7/2025, 7:00:00 PM)
0.195
+0.01 (+5.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners0.59%
Inst Owner ChangeN/A
Ins Owners9.86%
Ins Owner ChangeN/A
Market Cap29.34M
Analysts82.86
Price Target0.79 (305.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-17.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 4.78 | ||
| P/S | 0.66 | ||
| P/FCF | 6.19 | ||
| P/OCF | 5.57 | ||
| P/B | 0.83 | ||
| P/tB | 1 | ||
| EV/EBITDA | 5.14 |
EPS(TTM)0.01
EY5.13%
EPS(NY)0.04
Fwd EY20.92%
FCF(TTM)0.03
FCFY16.16%
OCF(TTM)0.04
OCFY17.96%
SpS0.3
BVpS0.24
TBVpS0.19
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 4.37% | ||
| ROCE | 5.95% | ||
| ROIC | 4.66% | ||
| ROICexc | 6.29% | ||
| ROICexgc | 8.03% | ||
| OM | 5.1% | ||
| PM (TTM) | 3.46% | ||
| GM | 26.43% | ||
| FCFM | 10.64% |
ROA(3y)-4.89%
ROA(5y)-9.88%
ROE(3y)-7.21%
ROE(5y)-292.78%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y8.74%
ROICexc growth 3YN/A
ROICexc growth 5Y17.15%
OM growth 3YN/A
OM growth 5Y5.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.77%
GM growth 5Y-2.07%
F-Score6
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 23.93% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 7.68 | ||
| Cash Conversion | 117.48% | ||
| Profit Quality | 307% | ||
| Current Ratio | 4.92 | ||
| Quick Ratio | 4.72 | ||
| Altman-Z | 3.49 |
F-Score6
WACC8.43%
ROIC/WACC0.55
Cap/Depr(3y)71.97%
Cap/Depr(5y)52.15%
Cap/Sales(3y)4.38%
Cap/Sales(5y)3.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)164.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-63.97%
EPS Next Y300%
EPS Next 2Y144.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6%
Revenue growth 3Y26.12%
Revenue growth 5Y24.86%
Sales Q2Q%-50.26%
Revenue Next Year-18.98%
Revenue Next 2Y22.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y351.55%
EBIT growth 3YN/A
EBIT growth 5Y31.11%
EBIT Next Year766.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y217.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y308.1%
OCF growth 3Y-32.85%
OCF growth 5YN/A