Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Mexican cement giant Cemex (NYSE: CX ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Cemex's business and see what CAPS investors are saying about the stock right now.
Cemex facts
| Headquarters (Founded) |
Garza Garcia, Mexico (1906) |
| Market Cap |
$5.06 billion |
| Industry |
Construction materials |
| Trailing-12-Month Revenue |
$13.86 billion |
| Management |
Chairman/CEO Lorenzo Zambrano
CFO Fernando Gonzalez
|
| Return on Equity (Average, Past 3 Years) |
(4.1%) |
| Cash/Debt |
$609.6 million / $15.6 billion |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96.5% of the 4,064 members who have rated Cemex believe the stock will outperform the S&P 500 going forward. These bulls include dixonnmex and fellow Fool Sean Williams (TMFUltraLong), the 12th-ranked member in all of CAPS.
Just last month, dixonnmex tapped Cemex as a solid turnaround opportunity:
I believe CX will survive and come back in to the$20.00 range within two years. I say Hold and be patient. Buy if you can.
In fact, Cemex currently trades at a particularly paltry price-to-cash flow of 3.2. That represents a clear discount to industry peers like Eagle Materials (NYSE: EXP ) (28.3), Martin Marietta Materials (NYSE: MLM ) (13.1), and Vulcan Materials (NYSE: VMC ) (22.5).
CAPS All-Star Sean Williams elaborates on the bargain opportunity:
No, this isn't a joke. I really am recommending a cement company, or in other terms, a company related in some way, form, or shape to the construction industry. Cemex has struggled in a very weak North American market but has done pretty well in Europe. Put activity has been strong and expectations remain visibly poor, but that's exactly the time to buy. Using some simple support and resistance levels I'm going to place a limit buy at $4.88. Here, I'd grab Cemex at roughly 0.3 times book value.
What do you think about Cemex, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Cemex? Add it to your watchlist.
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