CEMEX

Analysis of Cemex share price

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The Cemex share is a little-known share but one that deserves to be looked at, as do many sophisticated investors. If you too wish to start investing in the share price, this page provides you with a lot of useful information about this Mexican company, its activities and its competitors or partners, as well as some advice to help you analyse the share price in the best possible conditions, particularly with regard to the issues and threats that will arise in the near future. You will thus have all the cards in hand to analyse this stock in different ways.

Elements that can influence the price of this asset:

Analysis N°1

As Cemex is a company based in South America, it could benefit from this strategic positioning to exploit more natural resources in this area and also to develop its sales activities there more and more. Indeed, competition in South America remains very weak at present, which is of course beneficial for Cemex.

Analysis N°2

In the same way, Cemex is currently tending to implement a development strategy in Africa. However, this area of the world is still little exploited by its competitors, which represents an interesting development and profitability opportunity in the long term. In order to achieve this objective, Cemex should, in particular, carry out strategic company buyouts.

Analysis N°3

Competition from foreign companies, mainly Chinese, could overshadow Cemex. This applies mainly to the Mexican market, where many of Cemex's competitors are currently trying to establish themselves and gain market share.

Analysis N°4

Cemex could also suffer some losses in profitability due to a highly unpredictable regulatory framework in the various countries in which it operates, which could influence its production downwards.

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General presentation of Cemex

The Cemex Group is a Mexican company specialising in building materials. Its name is the acronym of Cementos Mexicanos, which literally means Mexican Cement. As you will now understand, Cemex specialises in cement, but also in concrete, which is nothing more than a derivative of cement, and in aggregates.

In terms of the distribution of products offered by Cemex in terms of turnover, the production and sale of cement and concrete are equally split between the production and sale of cement and concrete, which represent a fair share of 40% of turnover. The remainder of its turnover is generated by the sale of aggregates.

It should be noted that the Cemex group is an important group in the construction sector since it has very large market shares in many countries. In particular, it has more than 50% of the market share in Venezuela and 19% of the market share in France. This group is notably ranked first in the world in the concrete sector and third in the cement sector behind Lafarge and Holcim.

Of course, this Mexican company is particularly present in its own country. However, it also achieves a large part of its turnover in the rest of the world. In particular, the company has a strong presence in the United States and Europe. The Cemex group employs more than 70,000 people worldwide.

Cemex is headquartered in Monterry, Mexico, and its shares are listed on the Mexican Stock Exchange, although they are also listed on the NYSE. The Mexican stock market index to which it is linked is the CPI index.

Analysis of Cemex share price
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The major competitors of Cemex

In order to be able to implement a concrete and coherent investment strategy on Cemex's share price, it is of course essential to know who its main competitors are. We have indeed seen above that Cemex is the world leader in the concrete sector, but only in third place for cement.

Main

The two companies that are ahead of him in this field therefore deserve to be known. They are Lafarge and Holcim, which have moreover recently merged into a single entity, which largely explains their position as market leaders.

Others

Then come other competitors with the Chinese company Anhui Conch in second place and CNBM, also based in China, in fourth place. In fifth place is the German company Heidelberg. Then come the companies Italcementi, China Resources, Taiwan Cement, Eurocement and Votorantim.


The major partners of Cemex

The Cemex group has always been able to take advantage of the various alliances it has been able to set up with competitors or companies operating in other, sometimes complementary, sectors of activity. To better understand the value of such partnerships, here are a few of the most recent alliances set up by this group.

VNF

First of all, and in 2009, the Cemex group joined forces with several other companies such as VNF or Voies Navigables de France and Compagnie du Rhône, with the aim of working together to develop river logistics following the information resulting from the Grenelle Environment Forum. As part of their collaboration, these entities have worked to prioritise the use of waterways and barges in order to drastically reduce CO2 emissions linked to the transport of aggregates. Thanks to this partnership, Cemex has been able to restore its brand image.

Edycem Biplan

In 2016, the Cemex France group joined forces with the company Edycem Biplan in order to set up a partnership for the distribution of the Thermoform constructive solution. This solution, launched in 2013 by Cemex, aims to simplify construction sites for individual houses and small collectives in association with the insulating formwork block of the Biplan baton, which is manufactured in France by its associate. Since this association, Cemex's thermoform offer has consisted of an insulating formwork block, concrete and an additional pumping service.

LPO

More recently, in 2017, Cemex joined forces with the LPO or Ligue Protectrice des Oiseaux (League for the Protection of Birds) to renew a partnership aimed at improving biodiversity conservation for the fourteenth consecutive year. The two entities are thus pooling their know-how to work together to improve biodiversity while maintaining their operational objectives. It includes sustainable development issues, monitoring and scientific research, educational actions and communication. Here again, the aim for Cemex France is to continue to attract potential customers with a modern and environmentally friendly image.

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The factors in favour of a rise in the Cemex share price:
  • First of all, it should be noted that the group benefits from a very broad international positioning since it sells cement, concrete and aggregates in more than 50 different countries. Thanks to this good distribution of its sales, the group effectively protects itself against the economic risks associated with a single geographical area.
  • The Cemex group can also count on a very large workforce. Indeed, with no less than 40,000 employees worldwide and a very large number of production sites around the world, the company can respond effectively to demand.
  • Cemex can also rely on its long experience to reassure its potential customers, as it has been in business for over 100 years and thus enjoys a solid reputation for the quality of its products.
  • While the Cemex group has been able to develop effectively throughout the world, it also benefits from a strong position in its home country, Mexico.
  • Cemex is also known as one of the world market leaders, particularly thanks to the distribution of these products, which have received the most media coverage. For example, the company supplied specialty cement for the FifaWorldCup 2014 stadium, thereby increasing its equity and gaining notoriety. The group has also been involved in other major projects in Europe, including the construction of the largest Audi showroom in northern Germany.
  • Finally, and to conclude with the company's strengths, it should be noted that it has a good corporate image with the general public thanks to its solid value system, which is largely based on collaboration, integrity and leadership.
The factors in favour of a drop in the Cemex share price:
  • First of all, and despite a strong international presence, the Cemex group still makes more than a third of its total sales in Mexico. It is therefore still very exposed to the risk of recession in this country, particularly in the construction, building and real estate sectors. To protect itself effectively against this risk, Cemex still needs to make efforts to market its products elsewhere in the world, for example by diversifying its activities more effectively.
  • Finally, the second and final defect of the Cemex company concerns the judgment it is the target of each of its deviations or errors. As one of the leaders in its market, it must do everything possible to maintain its brand image and remain a caring and reassuring company.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

In which geographical areas does the Cemex Group operate?

The Cemex Group operates internationally. In particular, it is currently present in several different regions of the world, especially in Mexico, but also in the United States and Europe. Through its various subsidiaries, the Cemex group employs more than 40,000 people. It is also present in the IPC index of the Mexican Stock Exchange and has recently launched a digital platform called Cemex Go.

When and how was the Cemex Group created?

The Cemex Group was created in 1906 with the opening of Cementos Hidalgo. Cementos Portland Monterrey was created in 1920 and in 1931 the two companies merged to form Cementos Mexicanos or Cemex. The group quickly expanded by acquiring several other production sites throughout the country and was listed on the Mexican Stock Exchange in 1976, becoming the country's leading cement producer in the same year.

Which analysis should be used to study the Cemex share price?

To best anticipate future changes in the Cemex share price, you should preferably carry out at least two analyses: a technical analysis based on the stock's charts and a fundamental analysis. The latter will be done by studying the publications and news most likely to have an influence on its price.

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