Cementos Pacasmayo S.A.A. American Depositary Shares (Each representing five Common Shares) (CPAC)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $262 million in annual free cash flow (28.5% yield on market cap)
• Strong Piotroski F-Score of 9/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 12.8% above cost of capital
• Attractive 5.7% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($6) with negative 76% margin of safety—limited downside protection
• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Cementos Pacasmayo S.A.A. American Depositary Shares (Each representing five Common Shares) is a micro-cap basic materials company valued at $920 million. The business generates $2.1 billion in annual revenue with a 2.3% net margin and $262 million in free cash flow. From a quality standpoint, Cementos shows near-perfect Piotroski F-Score of 9/9 indicating exceptional financial health and distressed Altman Z-Score of 0.9 warrants caution. On valuation, the stock is reasonably priced at 21.0x earnings, with trades above its Graham Number with a negative 76% margin. Growth dynamics show revenue growing at 10.9% and profit growth of 14.3%. The 5.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $262 million in annual free cash flow (28.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer