Are you an investor who wants to buy or sell Holcim (formerly LafargeHolcim) shares or trade directly on its price? In this case, we will offer you our help to improve your knowledge about this stock and to make good analyses of its price. In this article, we will explain to you which elements to take into account in your fundamental analysis of this stock. We will explain more about the company's activities and its sources of profit and we will introduce you to its main competitors and current partners.
It will be necessary to monitor the various acquisition operations carried out by the Holcim Group, including the purchase of small players in the sector, as well as mergers with other large groups, with the aim of helping to improve commercial conditions.
The communication strategy and the means invested in the marketing aspect are also to be followed closely because they can contribute to reinforce the brand image of the company and improve its credibility.
The competition will also be a key element to integrate into this fundamental analysis since Holcim faces several major adversaries in its sector of activity. It is therefore necessary to follow with interest the publications and major events of these companies.
Similarly, certain government restrictions may impact the company's operating costs and make its profitability less attractive to investors.
Finally, it is of course important to keep an eye on both the group's strategic growth plans, which are regularly communicated to shareholders, and the group's actual results, which are published each year and each quarter.
Let's move on to Holcim and its presentation. As an investor, before buying or selling Holcim shares, you should be able to understand the different activities of this group and how it generates its profits.
The Holcim Group, formerly known as LafargeHolcim, is a French company specialising in the building materials sector. More specifically, it is a specialist in the production and sale of building materials.
To better understand the activities of the Holcim Group, they can be divided into different divisions according to the share of sales they generate and in this way:
It is also interesting to know how the Holcim Group distributes its revenues from a geographical point of view. The Group currently generates 3.5% of its sales in Switzerland, 7.2% in France, 6.6% in the United Kingdom, 3.2% in Germany, 8.2% in the rest of Europe, 14.2% in India, 4.4% in Australia, 5.7% in Asia Pacific, 16.1% in the United States, 7.5% in North America, 10.9% in Africa and the Middle East, 3.4% in Mexico, 6.4% in Latin America and 2.7% in the rest of the world.
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Now that you know more about the Holcim Group and its business, we suggest you find out who its main competitors are in its industry to help you perform an effective sector analysis of this stock.
First of all, the Lafarge group, with which Holcim had previously merged, is a French construction materials company that produces and markets cement, aggregates and ready-mix concrete worldwide. It has also developed internationally renowned specialty cements and innovative concretes. In 2015, the group had merged with Holcim before regaining its independence in 2021.
This company is also specialized in construction materials and is based in Mexico. The group specialises in cement, concrete and aggregates. Concrete and cement account for an equal share of the turnover of this company, which has a significant market share elsewhere in the world, including 19% of the French market. It is also the French leader in concrete production. The company currently employs over people and is listed on the IPC stock index of the Mexican Stock Exchange. In 2017, the group also launched its digital platform Cemex Go.
This German company, formerly known as Heidelberg Zement, is based in Heidelberg. It is currently the largest German cement producer. In terms of production capacity, it is the second largest cement producer in the world, with 200 million tonnes produced each year, just after Holcim. The Heidelberg Group is also listed on the German stock exchange index MDAX.
Finally, this Russian company is also specialized in building materials. In particular, it is active in the production of cement. This company was created in 2002 through a merger between Rosuglesbut and Shtern-cement.
The Holcim Group has many adversaries, but it can also count on some strategic allies. Indeed, the group regularly sets up partnerships with other companies as in the three examples we will present here:
The group has signed a three-way partnership with these two companies with the aim of accelerating the development of low-carbon concrete and recycled aggregates in the Pays de Loire region. The partnership also includes training and the use of a 360Design simulator for the Plée Construction teams and assistance on site by the teams of the Bétons Pays de Loire agency.
Holcim Belgium also has a long-standing partnership with this Belgian company as a supplier of raw materials to the construction industry. CO2logic enables Holcim to calculate, reduce and offset the carbon footprint of the various sites and quarries. Thanks to this joint effort, more than 15,000 tons of CO2 have been offset, equivalent to the annual emissions of almost 18,000 Belgian residents or 6,000 return flights between Brussels and New York in economy class.
More recently, the group has created a 10-year partnership with the General Electric group in the field of energy recovery from wind turbine blades. It is more precisely with the subsidiary GE Renewable Energy that this partnership was set up to recycle the materials coming from the wind turbines put out of service. The two companies have signed an agreement and will use Holcim's experience in recovering energy from wind turbine blades to find new ways to reuse these materials in the construction of new wind farms. As a result, aging turbines of more than 10 megawatts will be replaced or decommissioned in Europe before 2025.
To go further and better understand how the Holcim Group can develop in the coming years, we must also compare its strengths and weaknesses. This is what we propose to you now, starting with its advantages:
The disadvantages of the group are:
At present, the largest shareholders of the Holcim Group are private or institutional shareholders such as Groupe Bruxelles Lambert with 9.29%, Thomas Schmidheinv with 8.40%, Sawiris Nassef with 2.99%, Norges Bank with 2.98%, Harris Associates with 2.92%, MCKinley Capital Management with 0.10%, PNC Capital Advisors with 0.080%, Allegiant Asset Management with 0.079%, Carlson Capital with 0.038% and Allianz Global Investors with 0.036%.
In order to detect upward or downward signals in the Holcim share price through technical analysis, it is necessary to know the various most convincing graphic indicators. These include moving averages, the RSI indicator, stochastic indicators, Bollinger Bands, MACD, pivot points and technical support and resistance levels.
It is not currently possible to determine precisely whether Holcim's share price will rise or fall as the stock market remains uncertain. But you can use analysis to get signals that this asset will go up or down. We advise you to carry out a technical analysis as well as a fundamental analysis of this stock or even a sectorial or financial analysis.
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