Loma Negra Compania Industrial Argentina Sociedad Anonima ADS (LOMA)

FairStock Score: 28/100 — RISKY

Key Financials

Strengths

• Strong Piotroski F-Score of 9/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.28, providing financial flexibility
• Revenue growth of 26.9% demonstrates strong top-line momentum

Concerns

• Elevated P/E of 74.3x prices in substantial future growth that may not materialize
• Altman Z-Score of 0.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Loma Negra Compania Industrial Argentina Sociedad Anonima ADS is a micro-cap basic materials company valued at $1.3 billion. Revenue stands at $848.1 billion. From a quality standpoint, Loma shows near-perfect Piotroski F-Score of 9/9 indicating exceptional financial health and distressed Altman Z-Score of 0.3 warrants caution. On valuation, the stock is commanding a steep 74.3x multiple, with offers a 86% margin of safety vs Graham Number of $79. Growth dynamics show revenue growing at 26.9% and profit growth of -76.7%. Our composite FairStock Score of 28/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Loma's 27% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 74x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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