- Holcim is expected to confirm its 2024 guidance, with improvements in profit margins.
- Estimated sales for the period are CHF 7.27 billion, with organic sales expected to grow by 2.08%.
- The recurring EBIT is projected to be CHF 1.67 billion for the year, with a margin of 18.6%.
- Free Cash Flow (FCF) after leases is estimated to be CHF 3.44 billion.
- Morgan Stanley predicts stable guidance for 2024, forecasting CHF 3.5 billion in FCF, offering a 7% yield considered attractive in the Swiss market.
- The focus will be on the progress of the North American business split and pricing strategies in Europe and the US.
- Zürcher Kantonalbank anticipates a 2.3% decline in Q3 sales to CHF 7.2 billion, with a 0.5% organic growth in local currencies, indicating slight improvement from the first half.
- Margins are expected to improve across all regions, with Europe seeing the largest increase.
- Key interest points include the spinoff of the North American business and potential dividends and share buybacks.
- Jefferies is more positive about North America’s outlook for FY24 with a cautious view elsewhere.
- Analyst ratings include 11 buys, 13 holds, and 2 sells, with an average price target of CHF 87.15, suggesting a 5.2% potential upside.
- Shares have increased by 50.1% in the past year, outperforming the SMI Index which rose by 17.6%.
“`
A look at Holcim Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores, Holcim is positioned favorably for the long-term. With strong ratings across Value, Dividend, Growth, and Momentum, the company is showing resilience in various key factors. This indicates a positive outlook for Holcim in terms of its financial health, shareholder returns, potential for expansion, and overall market performance.
Holcim Ltd., a provider of building materials, is well-positioned to capitalize on its robust scores across several key aspects. Its ability to deliver value, offer attractive dividends, maintain growth prospects, and exhibit positive momentum bodes well for the company’s future performance in the global market. Although the Resilience score is slightly lower, Holcim’s overall outlook remains promising based on the aggregation of its Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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