Most Active Trio on Profitability Estimation: CEMEX, S.A.B. de C.V. (NYSE:CX)

CEMEX, S.A.B. de C.V. (NYSE:CX) persists its position slightly strong in context of buying side, while shares price build up 2.59% during latest trading session. Fundamentalist can give brighter side of a picture but an analyst can glow the darker parts stored in any investment. Let us view how analysts have ranked CX in recent few months. In ratings table the CX given BUY ratings by 13 analysts in current phase and 1 analyst suggest it as overweight security. The 2 analysts have SELL recommendation for current month on CX. While 8 analysts gave ratings for HOLD in current. As per remarks given by WSJ, overall consensus pool recommends it as Overweight security.

The stock was assessed in terms of profitability as current quarter EPS estimate trends showed $0.05 at current month while compared with $0.09 in a month ago. The stock next year first quarter current estimate trend for EPS was for $0.16 and on annual basis FY 2016 estimate trends at current was for $0.42 as compared to one month ago of $0.46, and for next year per share earnings estimates have $0.60.

Analysts Practices; to watch unbiased undervalue securities, there is need to see following technical rations. The firm holds price to earnings ratio of 19.51 that presents much better indication for a stock’s value than the market price alone. Based on historic views, the average P/E ratio in market fluctuates between 15 and 25, but alone low P/E ratio does not necessarily mean that a company is undervalued.

Narrow down focus to other ratios, the CEMEX, S.A.B. de C.V. (NYSE:CX) has current ratio of 1.10 that indicates if ratio lies in 1.3% to 3% then it is acceptable for both active and passive investors, but sometimes its varies industry to industry. Generally, it indicates good short-term financial strength. To make strengthen these views, the active industry firm has Quick Ratio of 0.90, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 1.79, sometimes it remain same with long term debt to equity ratio.

Analysts Pools

Fundamentalist can give brighter side of a picture but an analyst can glow the darker parts stored in any investment. Let us view how analysts have ranked CX in recent few months. In ratings table the CX given BUY ratings by 13 analysts in current phase and 1 analyst suggest it as overweight security. The 2 analysts have SELL recommendation for current month on CX. While 8 analysts gave ratings for HOLD in current. As per remarks given by WSJ, overall consensus pool recommends it as Overweight security.

The stock was assessed in terms of profitability as current quarter EPS estimate trends showed $0.05 at current month while compared with $0.09 in a month ago. The stock next year first quarter current estimate trend for EPS was for $0.16 and on annual basis FY 2016 estimate trends at current was for $0.42 as compared to one month ago of $0.46, and for next year per share earnings estimates have $0.60.

Profitability Analysis

To stick with focus on profitability valuation, CEMEX, S.A.B. de C.V. (NYSE:CX) also listed in significant eye catching mover, CX attains returns on investment ratio of 6.50%, which suggests it’s viable on security that has lesser ROI.

To strengthen this concept we can use profit margin, which is standing at positive 5.60%, and it is providing insight views about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 13.40% and 35.50% respectively. Turns back to returns ratios, the co’s returns on assets calculated as 6.50%; that gives an idea as to how efficient management is at using its assets to generate earnings. Finally yet importantly, returns on equity stand at 9%.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS of CEMEX, S.A.B. de C.V. (NYSE:CX) stands at -2%, and looking further price to next year’s EPS is 29.05%. While take a short look on price to sales ratio, that was 1.02 and price to earning ration of 19.51 attracting passive investors.

 

About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

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