Company Overview
Cementos Pacasmayo S.A.A. is a primary producer, distributor, and seller of cement and cement-related materials within the Peruvian market. The company operates within the Basic Materials sector, specifically the Building Materials industry, which encompasses the manufacturing and supply of essential construction inputs required for infrastructure and residential development. Cementos Pacasmayo S.A.A. is a significant entity in its field, boasting a market capitalization of $872.48M and generating annual revenue of $2.12B, though specific employee count data is not available in the current reporting period. The magnitude of these financial figures, particularly the $2.12B in revenue, indicates that the firm holds a substantial operational footprint and generates significant economic value through its diversified segments, including Cement, Concrete, Mortar and Precast, Quicklime, and Sales of Construction Supplies.
Financial Health
The company reported revenue of $2.12B for the trailing twelve months, resulting in a net income of $154.20M and an EBITDA of $490.27M. The substantial gap between the $2.12B revenue and the $154.20M net income reveals a cost structure where operating expenses, taxes, and interest charges consume approximately 92.7% of total revenue before reaching the bottom line. Cementos Pacasmayo S.A.A. generated free cash flow of $261.86M, which signifies a robust ability to fund capital expenditures, service debt obligations, and return capital to shareholders without relying on external financing. The firm maintains a cash balance of $53.57M against a total debt load of $1.43B, while the debt-to-equity ratio stands at 119.89, indicating a highly leveraged balance sheet where debt significantly exceeds equity capitalization. Despite the leverage, the current ratio of 1.09 suggests that the company possesses sufficient current assets to cover its current liabilities, ensuring adequate short-term liquidity to meet immediate obligations. Management effectiveness is further illuminated by a Return on Equity of 12.8% and a Return on Assets of 6.9%, metrics that demonstrate the firm's ability to generate returns relative to the capital invested and the total asset base utilized in operations.
Valuation Assessment
Valuation metrics for Cementos Pacasmayo S.A.A. show a trailing P/E ratio of 19.98 and a forward P/E of 66.17. The stark difference between the trailing and forward P/E ratios implies that the market is pricing in a significant divergence between current earnings performance and future earnings expectations, potentially reflecting anticipated changes in profitability or earnings quality. The price-to-book ratio is 13.01, which indicates that the market values the company at a substantial premium over its tangible book value, suggesting investors are willing to pay significantly more for the firm's assets than their recorded accounting value. Alternative valuation measures include a price-to-sales ratio of 0.41 and an EV/EBITDA of 11.70, which provide context by comparing market value directly to sales volume and earnings before interest, taxes, depreciation, and amortization, respectively. The stock has traded between a 52-week high of $11.50 and a 52-week low of $5.10, with the current market price sitting at a valuation level that requires specific calculation relative to this range to determine its position within the recent trading band. The beta value is 0.20, indicating that the stock's price volatility is significantly lower than the broader market, as a beta below 1.0 suggests the asset is less sensitive to overall market movements.
Growth & Income
Revenue growth for the trailing twelve months is recorded at 6.2%, while earnings growth for the year-over-year period is not available in the provided data. In the absence of reported earnings growth figures, it is not possible to determine if earnings are growing faster or slower than revenue based solely on the available metrics, though the revenue expansion suggests a positive trend in top-line sales. The company offers a dividend yield of 6.0%, but the payout ratio is 115.8%, indicating that the firm is distributing more in dividends than its current earnings would support if sustained at this rate. This payout ratio suggests that the dividend may be reliant on non-cash items, debt proceeds, or cash reserves rather than current operational profitability, which warrants close monitoring for sustainability. Overall, the growth and income profile presents a scenario of moderate revenue expansion paired with a high dividend yield that exceeds current earnings generation capabilities.