Summary:
Overall, LMCE stock would be recommended for a BUY or HOLD strategy, leaning more towards the HOLD eventhough LMCE seems to be relatively overvalued in terms of EV/EBITDA, P/B and P/S figures. The over-valuation appears to be due to the industry average being not a true reflector as it is worthy to mention that only LMCE is the $1.5 billion+ firm in the industry and the closest competitor is worth only around $800 million. Also, the forecasted EPS figures recommend a BUY on LMCE.
LMCE is a low debt company with considerable market share. It also believes in innovation as shown by its two new green-cement products. LMCE can, at any time, bank on its parent Lafarge’s network for better utilization of output and also to improve process quality to world-class levels.
If LMCE is able to wither the effects of a possible global recession in 2012, like it did in 2007/8, it could show a similar performance in 2012 as in 2008.
2007 | 2008 | 2009 | |
DIVIDENDS PER SHARE | 0.15 | 0.29 | 0.38 |
NET EPS | 0.21 | 0.43 | 0.49 |
EBITDA | 480,824.00 | 583,593.00 | 614,421.00 |
REVENUE | 2,173,532.00 | 2,530,771.00 | 2,483,106.00 |
