Global Head of Research & Head of Europe, Lucror Analytics

Felix Fischer

Global Head of Research & Head of Europe

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

<p>Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).<br>We assess CEMEX's ESG as "Strong", in line with its Environmental and Governance scores. The company has an "Adequate" score for the Social pillar. Controversies are "Immaterial" and Disclosure is "Strong".</p>

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess CEMEX's ESG as "Strong", in line with its Environmental and Governance scores. The company has an "Adequate" score for the Social pillar. Controversies are "Immaterial" and Disclosure is "Strong".

Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

Senior Credit Analyst - Emerging Markets

EM Spreads

Credit

<ul>
<li>The transaction is valued at approximately 6.8x 2023 EBITDA, or $396/ton, which we consider a good price given that Cemex currently trades at 5.5x LTM EBITDA, or $208/ ton.</li>
<li>We view Cemex’s divestments of its Dominican Republic assets as a positive credit event that aligns with its strategic priorities.</li>
<li>With this divestment, the company should focus on growing its key markets through bolt-on acquisition while maintaining its commitment to a healthy balance sheet.</li>
</ul>


The transaction is valued at approximately 6.8x 2023 EBITDA, or $396/ton, which we consider a good price given that Cemex currently trades at 5.5x LTM EBITDA, or $208/ ton.
We view Cemex’s divestments of its Dominican Republic assets as a positive credit event that aligns with its strategic priorities.
With this divestment, the company should focus on growing its key markets through bolt-on acquisition while maintaining its commitment to a healthy balance sheet.


News: Cemex to Divest Its Dominican Republic Operations for $950 Million

Debt Capital Markets

Cemex SAB de CV ADR / Debt Capital Markets

<ul>
<li>We maintain our Outperform recommendation on Cemex. The company benefits from favorable market trends in key markets, a strong commitment to further strengthening its credit profile, and credit-positive strategic priorities.</li>
<li>Despite challenging conditions, Cemex's top line for 2Q24 remained relatively flat yoy, missing analyst estimates, while adjusted EBITDA aligned with expectations, rising by 1.5% yoy.</li>
<li>Cemex ended the quarter with $10.1 billion of total debt, down $357.0 million sequentially. Gross and net leverage declined by one tick sequentially to 3.0x and 2.8x, respectively. </li>
</ul>


We maintain our Outperform recommendation on Cemex. The company benefits from favorable market trends in key markets, a strong commitment to further strengthening its credit profile, and credit-positive strategic priorities.
Despite challenging conditions, Cemex's top line for 2Q24 remained relatively flat yoy, missing analyst estimates, while adjusted EBITDA aligned with expectations, rising by 1.5% yoy.
Cemex ended the quarter with $10.1 billion of total debt, down $357.0 million sequentially. Gross and net leverage declined by one tick sequentially to 3.0x and 2.8x, respectively. 


Cemex 2Q24: Solid Performance in Mexico Offsets Softness in the US

<ul>
<li>We are initiating coverage on Cemex with a preference for CX 5.20% 2030 bonds. </li>
<li>Cemex’s business position, favorable market trends within its key markets, commitment to further strengthening its credit profile, and credit-positive strategic priorities support our optimistic view on the name.</li>
<li>For EM investors, we prefer CX 5.20% 2030, considering these bonds are trading wide to the Mexican Sovereign, the EM BBB Index, and the LatAm BBB Index.</li>
</ul>


We are initiating coverage on Cemex with a preference for CX 5.20% 2030 bonds. 
Cemex’s business position, favorable market trends within its key markets, commitment to further strengthening its credit profile, and credit-positive strategic priorities support our optimistic view on the name.
For EM investors, we prefer CX 5.20% 2030, considering these bonds are trading wide to the Mexican Sovereign, the EM BBB Index, and the LatAm BBB Index.


Cemex: The Promising Credit Story of a Regional Leader in the Cement Industry

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

iShares MSCI ACWI ETF / Technical Analysis

<ul>
<li>With the MSCI ACWI (ACWI-US) approaching the top-end of our expected 2023 trading range at $93, we see limited upside from here, and we believe caution is warranted.</li>
<li>We want to remain overweight Europe and the UK, but we prefer to buy only on pullbacks.</li>
<li>The Hang Seng and MSCI China (MCHI-US) are both getting rejected at their important resistances discussed last week, and we would expect to see a basing process develop below resistance.</li>
</ul>


With the MSCI ACWI (ACWI-US) approaching the top-end of our expected 2023 trading range at $93, we see limited upside from here, and we believe caution is warranted.
We want to remain overweight Europe and the UK, but we prefer to buy only on pullbacks.
The Hang Seng and MSCI China (MCHI-US) are both getting rejected at their important resistances discussed last week, and we would expect to see a basing process develop below resistance.


Caution Warranted; ACWI-US At $93 Resistance; Buys in Communications, Staples, Materials, Financials

United States

Cemex SAB de CV is a building products company. The Company produces, distributes, and markets cement, ready-mix concrete, aggregates, and related building materials. Cemex operates throughout the Americas, Europe, Africa, the Middle East, and Asia.

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Cemex SAB de CV ADR (CX US)

CEMEX - ESG Report - Lucror Analytics

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess CEMEX's ESG as "Strong",...

Lucror Analytics

News: Cemex to Divest Its Dominican Republic Operations for $950 Million

Cemex's divestment of Dominican Republic assets at a good price aligns with strategic priorities, allowing focus on growth and maintaining a...

Leandro Gubler

Cemex 2Q24: Solid Performance in Mexico Offsets Softness in the US

Cemex maintains its Outperform rating with strong market trends, a commitment to its credit profile, and stable financial performance in 2Q24....

Leandro Gubler

Cemex: The Promising Credit Story of a Regional Leader in the Cement Industry

Initiating coverage on Cemex with a preference for CX 5.20% 2030 bonds due to favorable market trends and credit-positive strategic priorities.

Leandro Gubler

Caution Warranted; ACWI-US At $93 Resistance; Buys in Communications, Staples, Materials, Financials

With the MSCI $ACWI approaching the top-end of our expected 2023 trading range at $93, we see limited upside from here and believe caution is...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

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CEMEX - ESG Report - Lucror Analytics

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess CEMEX's ESG as "Strong",...

Lucror Analytics

News: Cemex to Divest Its Dominican Republic Operations for $950 Million

​Cemex's divestment of Dominican Republic assets at a good price aligns with strategic priorities, allowing focus on growth and maintaining a...

Leandro Gubler

Cemex 2Q24: Solid Performance in Mexico Offsets Softness in the US

​Cemex maintains its Outperform rating with strong market trends, a commitment to its credit profile, and stable financial performance in 2Q24....

Leandro Gubler

Cemex: The Promising Credit Story of a Regional Leader in the Cement Industry

​Initiating coverage on Cemex with a preference for CX 5.20% 2030 bonds due to favorable market trends and credit-positive strategic priorities.

Leandro Gubler

Caution Warranted; ACWI-US At $93 Resistance; Buys in Communications, Staples, Materials, Financials

With the MSCI $ACWI approaching the top-end of our expected 2023 trading range at $93, we see limited upside from here and believe caution is...

Vermilion Research

Cemex's divestment of Dominican Republic assets at a good price aligns with strategic priorities, allowing focus on growth and maintaining a...

Cemex maintains its Outperform rating with strong market trends, a commitment to its credit profile, and stable financial performance in 2Q24....

Initiating coverage on Cemex with a preference for CX 5.20% 2030 bonds due to favorable market trends and credit-positive strategic priorities.