Loma Negra (NYSE:LOMA) Valuation in Focus After Third Quarter Revenue Decline and Debt Refinance Moves
Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) recently posted a drop in both net sales revenues and cement volumes for the third quarter. Recovery momentum slowed and pricing remained soft amid Argentina’s shifting political landscape.
See our latest analysis for Loma Negra Compañía Industrial Argentina Sociedad Anónima.
While the latest quarter brought softer sales for Loma Negra, its share price has staged a swift comeback, jumping over 40% in the past month even as its year-to-date return remains down 14%. That said, the cement maker’s long-term track record is more compelling, with a 5.3% total shareholder return over the past year and an impressive 198% total return over five years. This signals resilience beyond recent volatility.
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With shares rebounding sharply despite ongoing operational headwinds, the key question is whether Loma Negra’s current price offers true value or if the market has already factored in all expected future gains.
Most Popular Narrative: 27% Undervalued
The market price is sitting well below the narrative’s fair value estimate, with upside potential implied if its growth story plays out. All eyes are on those forward-looking assumptions and catalysts fueling optimism for the stock.
Emerging momentum in bulk cement dispatches linked to industrial, commercial, and large-scale housing developments, combined with early-stage increases in public works across key provinces, positions Loma Negra to gain from accelerated urbanization and infrastructure modernization. This will support revenue expansion and reduce cyclicality.
Curious what underpins this bold price target? The narrative hinges on aggressive forecasts for rising profits, richer margins, and a bullish revenue trajectory. Find out which surprising financial moves and market shifts are factored in, plus just how optimistic those long-term projections get.
Result: Fair Value of $14.82 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, ongoing pricing pressures and Argentina’s unpredictable economic policies could easily alter the outlook and challenge assumptions that support today’s upbeat narrative.
Another View: Market Ratios Raise a Red Flag
Looking through the lens of market ratios, Loma Negra’s shares look expensive. Its price-to-earnings ratio is 34.5x, notably higher than both its peers’ average (20.7x) and the global Basic Materials industry (15.1x). Even the fair ratio, at 19.5x, is far below the current level. This wide gap could expose investors to greater valuation risk if growth expectations do not materialize. How will the market react if momentum slows?
See what the numbers say about this price — find out in our valuation breakdown.
Build Your Own Loma Negra Compañía Industrial Argentina Sociedad Anónima Narrative
If you see the story differently or want to dig into the numbers yourself, it is simple to craft your own outlook and share your take in just a few minutes, Do it your way
A great starting point for your Loma Negra Compañía Industrial Argentina Sociedad Anónima research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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