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Holcim Ltd HOLN

Morningstar Rating
CHF 79.56 −1.00 (1.24%)
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Company Report

Holcim Earnings: On Track to Deliver Further Operating Margin Expansion

Narrow-moat Holcim delivered a 16% increase in organic operating profits, or a 90-basis-point improvement in its EBIT margin, during the first quarter, an indication that the group’s ongoing margin expansion is maintainable despite its record profitability during fiscal 2023. The first quarter is typically the least meaningful of the year for the construction sector, but we remain positive that the group will be able to achieve its 18% EBIT margin target for the full year given Holcim's strong start. Shares are trading broadly in line with our CHF 72 fair value estimate, which we maintain.

Price vs Fair Value

HOLN is trading at a 284% premium.
Price
CHF 80.56
Fair Value
CHF 26.00
Uncertainty
Medium
1-Star Price
CHF 15.30
5-Star Price
CHF 82.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The shift in Holcim's portfolio toward materials with lower capital intensity has provided a more resilient business.

Bears

Customers are unlikely to tolerate further price increases of building materials given the magnitude of price rises during the last three years.

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News

Trading Information

Previous Close Price
CHF 80.56
Day Range
CHF 79.3880.74
52-Week Range
CHF 54.3481.98
Bid/Ask
CHF 79.54 / CHF 79.58
Market Cap
CHF 44.71 Bil
Volume/Avg
681,944 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
13.81
Price/Sales
1.70
Dividend Yield (Trailing)
3.48%
Dividend Yield (Forward)
3.48%
Total Yield
7.03%

Company Profile

Holcim is a global manufacturer of a wide range of building materials. The merger between Lafarge and Holcim in 2015 created a leader in the building materials sector. Recent portfolio management diversified the group's exposure to heavy building materials. Approximately 40% of revenue is earned in North America.
Sector
Basic Materials
Industry
Building Materials
Stock Style Box
Large Core
Total Number of Employees
63,448

Competitors

Valuation

Metric
HOLN
CRH
HEI
Price/Earnings (Normalized)
13.8117.3910.11
Price/Book Value
1.742.751.05
Price/Sales
1.701.630.88
Price/Cash Flow
8.6710.575.41
Price/Earnings
HOLN
CRH
HEI

Financial Strength

Metric
HOLN
CRH
HEI
Quick Ratio
1.080.810.78
Current Ratio
1.441.371.19
Interest Coverage
8.0510.2113.68
Quick Ratio
HOLN
CRH
HEI

Profitability

Metric
HOLN
CRH
HEI
Return on Assets (Normalized)
5.64%7.59%5.65%
Return on Equity (Normalized)
11.43%17.23%11.51%
Return on Invested Capital (Normalized)
8.99%10.92%7.98%
Return on Assets
HOLN
CRH
HEI
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Building Materials Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CRH
CRH PLCKsqlfknvhmJnzdzbm$56.2 Bil
HCMLY
Holcim Ltd ADRWjlrnpw$49.5 Bil
HCMLF
Holcim LtdVscpcdxkPjnzl$49.5 Bil
MLM
Martin Marietta Materials IncQctsdxgrbNlmrn$35.7 Bil
VMC
Vulcan Materials CoRsqbwzfltCfbnz$34.3 Bil
HDELY
Heidelberg Materials AG ADRNvkq$19.7 Bil
HLBZF
Heidelberg Materials AGBdxfnzqrzDjb$19.7 Bil
AHCHY
Anhui Conch Cement Co Ltd ADRFhbgvqy$17.2 Bil
AHCHF
Anhui Conch Cement Co Ltd Class HKhdxqbc$17.2 Bil
JHX
James Hardie Industries PLC ADRPmpzhqltxbYwcz$13.6 Bil

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