Company Overview
Amrize Ltd functions as a provider of diverse building solutions tailored for infrastructure, commercial, and residential construction markets throughout North America. The company operates specifically within the Basic Materials sector and the Building Materials industry, which implies a direct reliance on cyclical economic conditions and raw material demand. Its operational scale is substantial, characterized by a market capitalization of $30.02B and an annual revenue of $11.82B supported by a workforce of 19000 employees. These valuation and revenue figures indicate that Amrize Ltd holds a significant position as a major player in the North American construction supply chain, reflecting its extensive reach and established market footprint.
Financial Health
The company generated revenue of $11.82B over the trailing twelve months, resulting in a net income of $1.18B and an EBITDA of $2.86B. The substantial gap between the $11.82B revenue and the $1.18B net income reveals a significant cost structure comprising operating expenses, taxes, and interest that consumes approximately 90% of top-line revenue. The business produced $1.58B in free cash flow, which signifies a robust capacity to fund capital expenditures, service debt obligations, or return capital to shareholders without needing external financing. Profitability efficiency is detailed across three distinct margins: a gross margin of 25.7%, an operating margin of 17.3%, and a profit margin of 10.0%. The gross margin indicates the pricing power relative to production costs, while the operating margin reflects internal efficiency, and the profit margin demonstrates the final ability to convert revenue into shareholder value. Liquidity and leverage are further defined by a cash balance of $1.92B against total debt of $6.34B, alongside a debt-to-equity ratio of 47.86. This leverage profile suggests a balance sheet that utilizes debt to finance operations while maintaining a conservative enough stance to manage interest obligations. Short-term liquidity is supported by a current ratio of 1.64, indicating that current assets exceed current liabilities by a healthy margin to cover immediate obligations. Additionally, the return on equity stands at 10.2% and the return on assets is 5.1%, metrics that reveal how effectively management is deploying capital to generate returns relative to the equity invested and total assets employed.
Valuation Assessment
Valuation metrics for Amrize Ltd include a trailing twelve-month P/E ratio of 25.30 and a forward P/E of 16.96. The difference between these two ratios implies that the market expects earnings growth in the future that would lower the forward multiple relative to current earnings. The price-to-book ratio is recorded at 2.26, which indicates that the stock trades at a premium of more than double its tangible book value. Alternative valuation measures include a price-to-sales ratio of 2.54 and an EV/EBITDA of 12.00, suggesting the company is valued based on both sales generation and earnings before interest, taxes, depreciation, and amortization. Regarding price volatility, the 52-week high is $65.94 and the 52-week low is $44.12; however, the specific current trading price is not provided in the available facts, preventing a precise calculation of the percentage deviation from the 52-week high or low. The beta is listed as N/A, meaning the specific volatility relative to the broader market cannot be quantified from the provided data.
Growth & Income
Recent performance indicators show a revenue growth of -0.4% year-over-year and an earnings growth of 3.6% year-over-year. The divergence where earnings are growing at 3.6% while revenue contracts by 0.4% implies that the company is improving its profitability through cost controls or margin expansion despite a flat or declining top line. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. This lack of dividend distribution means the company reinvests all earnings back into the business for growth initiatives or debt reduction rather than providing immediate cash returns to shareholders. The overall growth and income profile is defined by positive earnings expansion amidst stagnant revenue, coupled with a strategy of retaining capital rather than distributing income.
Peer Comparison
Amrize Ltd (AMRZ) operates in the Building Materials industry. Here is how it compares to its closest peers by market capitalization:
The Building Materials industry average P/E ratio is 31.4x. Amrize Ltd trades at a P/E of 24.6.