Interactions Values House talk about the initial cover report:

Interactions Values House talk about the initial cover report:
"Corporacion Moctezuma, one of the most profitable companies in the BMV."

Precis review of the company:

Moctezuma Corporation has 72 years of experience in the construction industry. It is engaged in the production, sale, and distribution of Portland cement and ready-mix concrete as well as the extraction and sale of aggregates.

The company currently has three cement plants located in Tepetzingo Morelos, Cerritos San Luis Potosí, and Apazapan Veracruz, and an installed cement capacity of 6.4 million tons per annum.

Since Q414, Moctezuma has maintained double-digit year-on-year quarterly operating growth rates. In 2015, sales reached record levels (MXN$11.026.3 million, +20% YoY) and the company registered strong growth rates in operating profit (+42.9%YoY), EBITDA (+36.6%YoY), and consolidated net profit (+41.1%YoY). Q116 margins were historical highs; the LTM EBITDA margin reached 42.53% (vs 40.9% at end Q415) and the Net margin of 27.4%.

Review:

  • • We are initiating coverage of Moctezuma Corporation, S.A.B de C.V. (CMOCTEZ*) with an end- Q217 target price of $63.50 MXN and a dividend of $2.53 MXN per share, implying an upside potential of 14.1%. Our rating is BUY.
     
  • Excellent growth prospects – We expect high growth rates going forward, driven by greater operating capacity over the coming year, and efficiencies resulting from a high profitability focus, low energy costs, and high cash flow generation.
     
  • High profitability – Our ROIC and ROE profitability analysis of the Mexican Stock Exchange (BMV) based on a sample of 90 companies, showed Moctezuma Corporation to be one of the most profitable companies (in ROIC terms), for five straight quarters since Q115. This can be attributed to the company’s high capital turnover (1.27x as at Q116) and its EBITDA margin. It ranks second in terms of ROE.
     
  • Free cash flow generation – This has given the company a solid financial structure with a net debt to EBITDA ratio of -0.7x. It also uses its own cash to fund growth. We expect that cash flows generated during the investment phase will finance the enlargement of the Veracruz facility.
     
  • Dividends – The company has maintained an ongoing dividend policy. We estimate a dividend yield of 4.45% for the next 12 months.
     
  • Valuation multiples trail the industry – CMOCTEZ is trading at a P/E multiple of 16.5x, -3% below industry multiples.
     
  • Main risks: i) Dependency on sector and one economy; ii) low liquidity; iii) high sensitivity to energy costs; and iv) exchange rate exposure.


Find all the information on “Inicio de cobertura 2016 CBI” (English version), you can download HERE.

BUYING OR DISTRIBUTING?
Evento Relevante

Evento Relevante

Corporación Moctezuma informa al público inversionista que la Lic. Erika Aarun Cordero se ha separado de la emisora.

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GUIDE OF CODE OF ETHICAL CONDUCT

GUIDE OF CODE OF ETHICAL CONDUCT

Available only in Spanish. English language is accepted if you want to use the complaint channel.

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Our History

Our History

Our history supports the production of cement and concrete of the best quality.

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Infrastructure

Infrastructure

We have invested so that our plants are fully equipped with state of the art technology.

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We build Value

We build Value

At Corporacion Moctezuma We Build Value with the involvement of our committed team of collaborators.

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MAY 31,2018

Evento Relevante

Corporación Moctezuma informa al público inversionista que la Lic. Erika Aarun Cordero se ha separado de la emisora.

Evento  Relevante Evento Relevante

Corporación Moctezuma informa al público inversionista que la Lic. Erika Aarun Cordero se ha separado de la emisora.

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AUG 10,2017

Message to our SHAREHOLDERS 2016

We remain firmly committed to our clients with the aim of establishing lasting business relationships in an environment of respect and strict adherence to Corporacion Moctezuma's values.

Message to our SHAREHOLDERS 2016 Message to our SHAREHOLDERS 2016

We remain firmly committed to our clients with the aim of establishing lasting business relationships in an environment of respect and strict adherence to Corporacion Moctezuma's values.

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JUL 18,2016

Interactions Values House talk about the initial cover report:

Corporacion Moctezuma, one of the most profitable companies in the BMV.

Interactions Values House talk about the initial cover report: Interactions Values House talk about the initial cover report:

Corporacion Moctezuma, one of the most profitable companies in the BMV.

+ information