Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Thematic (Sector/Industry)

Turkey Materials / Thematic (Sector/Industry)

Global GDP growth prospects have faded in the past several years, weakening the overall outlook for highly cyclical cement demand and resulting in largely stagnant cement company share prices since early 2015. Yet a focus on weakening global growth overlooks divergent trajectories at the country level, which is the more relevant way to evaluate cement company prospects given the highly local nature of their business. But with globe-spanning operations covering up to 100 countries, this can be a daunting task. We introduce a new methodology to forecast country-level cement demand, which informs a portfolio-level demand outlook for each cement company we cover.<a href="https://www.smartkarma.com/entities/22701" target="_blank" data-smartkarma-citation="entities:22701:1">Cemex SAB De CV (ADR) (CX US)</a> and <a href="https://www.smartkarma.com/entities/21883" target="_blank" data-smartkarma-citation="entities:21883:1">CRH PLC (CRH ID)</a>are best positioned amid weaker global economic growth, though only Cemex trades at a discount to intrinsic value—about 33%. Cemex should enjoy strong volume and price growth amid improving U.S. residential construction activity and rising Mexican infrastructure investment. For CRH, the excellent long-term outlook for Philippines cement demand buoys the company's overall prospects, though we consider shares fairly valued. We expect a heavy European presence will weigh on growth for <a href="https://www.smartkarma.com/entities/21645" target="_blank" data-smartkarma-citation="entities:21645:1">HeidelbergCement AG (HEI GR)</a> and LafargeHolcim and consider both stocks fairly valued.Analyst: Kristoffer Inton &amp; Daniel Rohr

Global GDP growth prospects have faded in the past several years, weakening the overall outlook for highly cyclical cement demand and resulting in largely stagnant cement company share prices since early 2015. Yet a focus on weakening global growth overlooks divergent trajectories at the country level, which is the more relevant way to evaluate cement company prospects given the highly local nature of their business. But with globe-spanning operations covering up to 100 countries, this can be a daunting task. We introduce a new methodology to forecast country-level cement demand, which informs a portfolio-level demand outlook for each cement company we cover.Cemex SAB De CV (ADR) (CX US) and CRH PLC (CRH ID)are best positioned amid weaker global economic growth, though only Cemex trades at a discount to intrinsic value—about 33%. Cemex should enjoy strong volume and price growth amid improving U.S. residential construction activity and rising Mexican infrastructure investment. For CRH, the excellent long-term outlook for Philippines cement demand buoys the company's overall prospects, though we consider shares fairly valued. We expect a heavy European presence will weigh on growth for HeidelbergCement AG (HEI GR) and LafargeHolcim and consider both stocks fairly valued.Analyst: Kristoffer Inton &amp; Daniel Rohr

Inner Mongolia Baotou Steel Union (600010 CH)

Global Cement Outlook: Geographic Mix Makes Cemex Our Top Pick