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

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable economics, honest accounting, and a price that leaves room for error. Cementos Pacasmayo is a Peruvian building-materials producer; in fiscal Q2 2026, revenue was $558.9M and net income $77.2M, a 13.82% margin. That is a decent business, but from the figures provided I cannot verify a wide moat. Cement can have local advantages, yet commodity building materials usually lack pricing power over a cycle. The returns are mixed: FairStock calculates ROE at 15.98% and ROCE at 9.97%. ROCE below 10% is not compelling for a capital-intensive industry. The balance sheet worries me more: D/E is 1.03, and the Altman Z-Score of 0.87 suggests distress risk. The Piotroski F-Score of 6/9 is middling. On valuation, at the 2026-10-13 close of $12.27, FairStock shows P/E 17.04, P/B 2.69, EV/EBITDA 3.49, and a Graham Number of $7.15, leaving a negative margin of safety of -71.61%. That is not a Graham bargain. The counterweight is cash generation: trailing free cash flow of $377.5M gives a 41.0% FCF yield, and PEG is 0.28 with low beta 0.12 and 4.91% dividend yield. If that FCF is sustainable, the market is mispricing it. But Graham would demand proof. The computed Lynch category is none because only 0 years of filed results are available, so I have little multi-year record. I would want to see debt reduction, stable margins, and repeatable cash conversion before calling this a margin-of-safety investment.

In plain English: Cementos Pacasmayo makes cement and building supplies in Peru. The business is profitable and grew quickly in the latest quarter, but it uses a lot of debt and one financial-stress check looks weak. At the recent price, the shares look expensive compared with a conservative value based on its books and earnings, even though they look cheap compared with the cash the business generates.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer