| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 96 | 3.2x | 17.8x | Top tier | |
Growth | 72 | 9.7% | 7.1% | Top tier | |
Quality | 66 | 8.7% | 4.5% | Around median | |
Safety | 65 | 2.0x | 2.6x | Around median | |
Capital Return | 84 | — | 2.12% | Top tier | |
Momentum | 43 | 26.3% | 2.9% | Around median | |
Sentiment | 39 | 4 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CEMEX, S.A.B. de C.V. operates in building materials through cement, ready-mix concrete, and aggregates, benefiting from integration among these products to increase sales volumes across the value chain. Its operations span Mexico, the United States, Europe, the Middle East, Africa, South America, Central America, and the Caribbean, with demand coming from housing, infrastructure, industrial facilities, and data centers. Its portfolio of urbanization solutions, the Omega acquisition, and the Project Cutting Edge program also work to reduce costs and improve asset efficiency and cash flow quality.
In Q2 FY2026, sales adjusted for the nonrecurring item grew 11%, EBITDA rose 19% to exceed $1 billion, and operating profit grew 29%. The EBITDA margin reached 21.4% after excluding a positive nonrecurring European settlement of $42 million, up 1.4 percentage points, while the operating margin rose by about 2 percentage points; controlling net income increased 9%. Three of the 4 regions contributed double-digit earnings growth, led by Mexico, while weather and material and freight costs pressured the United States, and European demand remained softer.
Free cash flow from operations reached $651 million in Q2 FY2026, a second-quarter record and an adjusted year-over-year increase of more than $400 million, while the last-12-month conversion rate reached 60%. For annual comparison, FY2024 recorded revenue of $16.2 billion, gross profit of $5.4 billion, and net income of $960 million, compared with revenue of $16.6 billion and net income of $199 million in FY2023. This shows that the annual improvement in profitability did not depend on revenue growth, while Q2 FY2026 results indicate a shift in focus toward margins, cash flow, and capital efficiency.
Analyst consensus on CX stock is “Buy,” with an average target of $14.5 and a range of $13.5 to $16; the average is above the 52-week range high of $13.67, while the range low is $8.73. The high target of $16 reflects the potential for continued margin and cash flow expansion, but the low target of $13.5 is close to the 52-week range high and highlights that strong execution has become important to justify a higher valuation. The reported P/E ratio does not provide an additional anchor, so the valuation assessment is based on the target range versus the 52-week range and on the company's ability to achieve its guided 16%–17% earnings growth in FY2026.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Sales adjusted for the nonrecurring item grew 11%, while EBITDA rose 19% and operating profit increased 29%. EBITDA exceeded $1 billion, and its adjusted margin reached 21.4% after excluding a positive nonrecurring European settlement of $42 million. Project Cutting Edge contributed $60 million in savings, while improved pricing for core products and $50 million of foreign exchange support provided additional contributions.
Project Cutting Edge is a multiyear program to reduce expenses and improve operations, earnings quality, and asset efficiency. By Q2 FY2026, CEMEX had completed about 80% of the initial target and raised its savings target from $400 million to $475 million. The updated target consists of about $230 million in administrative expenses and $245 million in operating efficiencies, with $185 million in savings expected in FY2026 and about $90 million more in FY2027. The company also identified $300 million of potential free cash flow improvement through lower spending and optimization of the asset base.
CEMEX estimates that U.S. data centers could add about 2% to annual national cement consumption between 2026 and 2030. About 35% of planned or under-construction hyperscale projects are within the company's footprint, and its teams achieved a 60% bid win rate. Supply volumes to these projects grew 185% in FY2025 and then doubled in FY2026 through the date of the July 23, 2026 call, with the company benefiting through ready-mix concrete and the associated cement, aggregates, and admixtures.
Automated analysis for informational purposes only — not investment advice.
Cement volumes recorded year-over-year growth for the second consecutive quarter in Q2 FY2026, supported by self-construction, social housing, and improved efficiency and pricing. The company secured work for about 135 thousand social housing units and is negotiating for an additional 145 thousand units under a government target of 1.8 million units through 2030. However, management expects margins to decline slightly during the second half of FY2026 because market-share gains resulting from competitors' outages will end, the sales mix will become less attractive, and maintenance shutdowns will increase. The backlog of railway, road, and dam projects is expected to become more impactful in FY2027 because of slow execution starts.
Free cash flow from operations reached $651 million in Q2 FY2026, and the adjusted last-12-month conversion rate reached 60% versus 33% a year earlier. Net leverage, including perpetual subordinated instruments, declined to 2.08 times, despite net debt including subordinated instruments increasing by about $270 million since December because of the Omega acquisition, share repurchases, and dividends. The company repaid about $1.5 billion of bank loans, redeemed $1 billion of subordinated instruments, and issued $1.5 billion of 10-year senior notes with a 5.75% coupon. It expects to pay about $455 million in interest and coupons in FY2026, nearly $40 million less than the previous year.
