- Holcim’s first quarter recurring Ebit was CHF532 million, an increase of 7.9% from the previous year, which beat estimates of CHF501.9 million.
- The recurring Ebit for Europe was CHF116 million, a 20% increase from the previous year, surpassing estimates of CHF98 million.
- In contrast, North America’s recurring Ebit was CHF35 million, a decrease of 2.8% from the previous year, marginally below estimates of CHF37.1 million.
- Latin America’s recurring Ebit was CHF252 million, marking a 3.7% increase from the previous year and beating estimates of CHF237.2 million.
- The recurring Ebit for Asia, the Middle East, and Africa (AMEA) was CHF180 million.
- Total sales were CHF5.59 billion, down 2.4% from the previous year and slightly lower than the estimated CHF5.64 billion.
- European sales stood at CHF1.6 billion, 5.5% lower from the previous year and matching the estimated amount.
- North American revenue was CHF1.13 billion, a 5.7% decrease from the previous year and slightly under the estimated CHF1.15 billion.
- Latin American revenue was CHF691 million, a 0.7% increase from the previous year, surpassing the estimated CHF668.9 million.
- AMEA brought in net sales of CHF874 million, marking a 14% decrease from the previous year.
- The organic sales remained stagnant at 0%, falling short of the estimated growth of 1.76%.
- Still, Holcim forecasts the organic sales above +4%, beating the estimated +3.65%, for the full year.
- The company also maintains its projection for a recurring Ebit margin of 18%, matching the estimated projection.
- Also worth noting is that Holcim currently holds 13 buys, 10 holds, and 2 sells.
Holcim on Smartkarma
Analysts on Smartkarma, like Jesus Rodriguez Aguilar, are bullish on Holcim as the company plans to spin off and list its North American business in the US. This move is expected to be value accretive and could result in a 25.7% upside. Despite lagging behind competitors in share price performance since the Holcim/Lafarge merger, the announcement of the spin-off on 29 January has generated optimism among investors. The infrastructure and housing sectors in the US have contributed to higher valuations compared to European counterparts, with the potential for significant value creation from this strategic decision.
Jesus Rodriguez Aguilar‘s research report titled “Value from US Spin-Off” emphasizes the potential benefits of this strategic move by Holcim. With a fair value estimate of CHF 84.47/share, representing a considerable upside, investors are closely watching the developments surrounding the spin-off. The higher valuation multiples in the US market compared to Europe indicate a positive outlook for Holcim’s North American business post-spin-off. This analysis highlights the growth prospects and value creation opportunities that this strategic decision could unlock for Holcim and its shareholders.
A look at Holcim Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Holcim shows a positive long-term outlook. With strong scores in Value, Dividend, and Growth, the company is positioned well for future growth and potential returns for investors. Additionally, its high Momentum score suggests that Holcim is currently in a strong position in the market. While its Resilience score is slightly lower, overall, Holcim’s smart scores indicate a promising future ahead.
Holcim Ltd., a company providing building materials worldwide, has garnered impressive scores across various factors. With a notable focus on value, dividend, and growth, Holcim demonstrates a solid foundation for continued success in the industry. Moreover, its momentum score indicates strong market performance, highlighting the company’s current strength. Although resilience is rated slightly lower, Holcim’s overall outlook appears robust, positioning it well for long-term sustainability and growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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