Holcim Ltd: A pullback with significant trading volume
Published on 01/20/2017
at 01:11 pm IST
Share
SELL
Conditionne
Stop-loss triggered
Entry price
Target
Stop-loss
Potential
CHF 50.5
CHF 46.5
CHF 52.8
+7.92%
A new downward trend seems to form for stocks in Lafargeholcim Ltd following the return of significant trading volumes.
Summary
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● Graphically speaking, the timing seems perfect for purchasing the stock close to the CHF 50.75 support.
● This company will be of major interest to investors in search of a high dividend stock.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The tendency within the weekly time frame is positive above the technical support level at 43.85 CHF
Weaknesses
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
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Holcim Ltd specializes in producing and marketing construction materials. Net sales break down by family of products as follows:
- cement and clinkers (44.2%);
- ready-mix concrete (21%);
- granulates (12.4%): sand, gravel, chalk, etc.;
- other (22.4%).
Net sales are distributed geographically as follows: France (7.5%), the United States (29.3%), Canada (9.5%), Mexico (6.6%), the United Kingdom (6.5%), Australia (4.7%), Switzerland (3.4%), Germany (3%), and others (29.5%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
