Cemex S.A.B. de C.V. Sponsored ADR (CX)

FairStock Score: 31/100 — RISKY

Key Financials

Strengths

• Generates $1.2 billion in annual free cash flow (6.7% yield on market cap)
• Established organization with 39,462 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($1) with negative 814% margin of safety—limited downside protection
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Cemex S.A.B. de C.V. Sponsored ADR is a mid-cap basic materials company valued at $18.2 billion. The business generates $16.1 billion in annual revenue with a 1.4% net margin and $1.2 billion in free cash flow. From a quality standpoint, Cemex shows distressed Altman Z-Score of 1.2 warrants caution and modest 3% ROE. On valuation, the stock is commanding a steep 46.3x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 4.7% and profit growth of -35.0%. Our composite FairStock Score of 31/100 reflects below-average 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 $1.2 billion in annual free cash flow (6.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 46x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Sluggish 5% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

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