AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Cementir Holding

CR
Bloomberg   CEM IM
Cement & Aggregates  /  Italy  Web Site   |   Investors Relation
Also operates in : Holding Companies
White knight with green armour
EPS change11/12/2019

Change in EPS2019 : € 0.50 vs 0.48+4.11%
2020 : € 0.63 vs 0.57+9.36%

In our opinion, the 300bp EBITDA margin improvement by 2022 as well as the back-ended green capex should drive EPS higher as soon as 2020, compared to our previous assumptions. Cementir remains a strong buy in the capital-intensive cement industry thanks to its clever capital allocation: it now favours internal investment rather than acquisitions, due to the fact that the payback period is about half that of an acquisition. Bottom line, Cementir is truly the king of capital allocation in the cement sector.



Change in Target Price€ 9.49 vs 9.11+4.24%

We have reviewed our long-term assumptions: we believe that the industrial plan offers some upside to our valuation. Nonetheless, we remain especially cautious in our long-term assumptions especially on the cash generation side of our DCF, meaning that there is more chance of a revision upwards than of a revision downwards.



Target
Upside 43.1%
Price (€) 6.08
Market Cap (€M) 967
Perf. 1W: 0.66%
Perf. 1M: -3.03%
Perf. 3M: -5.88%
Perf Ytd: -7.24%
10 day relative perf. to stoxx600: 0.81%
20 day relative perf. to stoxx600: -2.63%
Updates

29 Jul 20 Earnings/sales releases
H1 20: in for a Danish treat

14 May 20 Earnings/sales releases
Q1 20: lower result but good shareholder remu...

06 Mar 20 Earnings/sales releases
FY19: profits higher than our conservative proje...

18 Feb 20 Earnings/sales releases
FY19: stability despite the Turkish burden

20 Dec 19 Latest
When cement goes green too

15 Nov 19 Earnings/sales releases
Priority to organic growth

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