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What: Shares of Cemex
So what: The Mexican cement maker has hit 13-year lows as slowing growth in the United States, and Europe may put a damper on the company's prospects going forward. Meanwhile, Cemex carries roughly $17 billion debt on its balance sheet, which is more than 7 times the company's EBITDA.
Now what: Cemex nearly defaulted on its debt back in 2009, so it's not out of the question to be concerned with the heavy burden. Management has vowed to bring debt down to under 7 times EBITDA by the end of the year. If the company fails to meet its debt covenants, its creditors could make life much harder for the 105-year-old company by requiring immediate repayment or demanding higher yields.
Interested in more info on Cemex? Add it to your watchlist.
Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.