Essay About Company’S Financial Data And World’S Third Largest Cement Producer

Cemex
Essay title: Cemex
Cemex S.A.B. de C.V.
(Cemex)
Executive Summary
This paper presents fundamental and financial analysis of Cemex. The analysis is
performed by analyzing the company’s financial data for the period beginning December
2002 through December 2005.
The paper introduces Cemex by presenting the company’s information and a brief
summary of its main activities. Following the introduction, the paper will perform an
extensive industry and company analysis and summarize these findings in the SWOT
analysis. This will assess Cemex’s strengths, weaknesses, opportunities, and threats.
The paper will then provide a complete financial statement analysis and ratio analysis.
In conclusion, the paper presents an assessment of the intrinsic value of Cemex and a
recommendation based on the company’s valuation and findings presented in the paper.
Cemex S.A.B. de C.V. (Summary)
Corporate Headquarters Address:
Cemex SAB
Ave. Ricardo Margain 325
Garza Garcia,N.L.
Mexico 66265
Web Site:
Telephone:
(81)8888-4292
Main Business:
Production, distribution, marketing, and sale
of cement, ready-mix concrete, aggregates, and
clinker
Facilities:
Worldwide (50 countries)
Industry: Cement
Sector:
Industrial Goods
Chairman:
Lorenzo Zambrano
Annual Sales:
$15.3 billion
Growth rate:
15 year growth rate of 15%
Stock Exchange:
NYSE (ticker symbol CX)
Shares Outstanding
732.91 billion
Fiscal Year End:
December 31, 2005 (most recent
published report)
Stock Price:
$33.02 per share (as of March 6,
2007)
Company Overview
Cemex is the world’s third largest cement producer behind Lafarge and Holcim
(formerly Holderbank). It operates in 50 countries around the world with a concentration
on the America’s and Europe. It also has a presence in Africa, Asia, and the Middle East.
In 2005, it completed a US $5.8 billion acquisition of RMC Group, one of Europe’s
largest producers of cement and aggregates and the world’s largest supplier of ready-mix
concrete. This acquisition doubled the size of Cemex. In October of 2006, it put in a
hostile bid to acquire Rinker Materials Corp. (NYSE: RIN) for $12.8 billion. This would
nearly double the size of the company again. This possible acquisition will play out in
the second quarter of 2007.
Cemex is a vertically integrated company that mines the aggregate and uses this