Stock Information
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LOMALoma Negra Compania Industrial Argentina Sociedad Anonima

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Company Info

CEO

Sergio D. Faifman

Location

N/A, Argentina

Exchange

NYSE

Website

https://lomanegra.com

Summary

Loma Negra Compañía Industrial Argentina Sociedad Anónima manufactures and sells cement and its derivatives in Argentina.

Company Info

CEO

Sergio D. Faifman

Location

N/A, Argentina

Exchange

NYSE

Website

https://lomanegra.com

Summary

Loma Negra Compañía Industrial Argentina Sociedad Anónima manufactures and sells cement and its derivatives in Argentina.

AI Insights for LOMA
2 min read

Quick Summary

Loma Negra Compañía Industrial Argentina Sociedad Anónima is Argentina’s largest producer and seller of cement and related construction materials. The company manufactures cement, masonry cement, lime, concrete, aggregates, and provides rail services, primarily serving the Argentine construction and infrastructure sectors. Its main customers are large building contractors, infrastructure developers, government agencies, and distributors engaged in residential, commercial, and public projects. Loma Negra's products are foundational to infrastructure and housing development, making it a key supplier in South America’s growing construction landscape. As a subsidiary of InterCement Trading e Inversiones S.A., it benefits from global reach and expertise, and trades as an American Depositary Receipt (ADR) on the NYSE under the symbol LOMA.

The Bull Case

  • Loma Negra’s primary strength lies in its dominant market position as Argentina’s leading cement manufacturer, benefiting from extensive distribution and brand recognition nationwide.
  • Its diversified business model, covering cement, concrete, aggregates, and rail services, allows it to capture value across the construction supply chain.
  • The backing of InterCement provides access to global best practices, technology, and financial resources.
  • The company maintains strong relationships with key customers in the public and private construction sectors.
  • Its large asset base, including strategically located plants and logistical capabilities, supports consistent supply to major projects across the country.

The Bear Case

  • The company’s main vulnerabilities include susceptibility to Argentina’s volatile macroeconomic environment, which affects both input costs and demand for construction materials.
  • Loma Negra is exposed to foreign exchange risks, inflation, and potential delays or reductions in government infrastructure spending.
  • The high price-to-earnings and EV/EBITDA ratios may indicate elevated valuation risks or market skepticism about sustained profitability.
  • Profit margins are pressured by competition and fluctuating energy and transportation expenses.
  • Increased debt levels following the recent bond issue add to financial risk.

Key Risks

  • Risks to Loma Negra include persistent political and economic instability in Argentina, which can rapidly shift government policy on infrastructure and trade.
  • Currency devaluation and inflation threaten cost predictability and earnings.
  • The cyclical and highly competitive construction materials industry poses ongoing pressures on pricing and market share.
  • Reliance on a limited geographic market increases vulnerability to local downturns.

What to Watch

UpcomingDuring the most recent quarter, Loma Negra faced significant headwinds, reporting a 12.1% drop in year-over-year revenue to Ps.
Upcoming209 billion and a net loss of Ps.
Upcoming8.6 billion, primarily due to lower cement sales and rising financial costs.
ExpectedLooking ahead to the next quarter, Loma Negra is expected to focus on stabilizing cement volumes and improving profitability amid ongoing macroeconomic and political uncertainties in Argentina.

Price Drivers

  • The stock price of Loma Negra is influenced heavily by the health of Argentina’s construction and infrastructure markets, cyclical demand for cement, and macroeconomic conditions such as inflation, interest rates, and currency fluctuations.
  • Earnings performance, especially revenue and EBITDA trends, are critical as reflected by the company’s recent earnings and its high price-to-earnings and enterprise-value-to-EBITDA ratios.
  • Market and political developments in Argentina, particularly government spending on housing or infrastructure and deregulation activities, can sway demand.
  • The company’s capital management initiatives, like the recent bond issue to refinance debt, also impact investor sentiment.

Recent News

  • Recent news for Loma Negra includes the report of a challenging quarter with declining revenues and profitability due to weaker cement demand and increased financial expenses.
  • The company addressed debt concerns through issuing a US$113 million bond to refinance obligations.
  • While not directly related, Loma Negra’s name also appeared in news about other Loma-branded companies, but these refer to unrelated food brands or utility assets.
  • Industry commentary highlights that U.S.

Market Trends

  • Broadly, the construction materials market is benefiting from a global emphasis on infrastructure renewal, particularly in the U.S.
  • and select emerging markets.
  • Demand for cement remains closely tied to public and private building cycles, which are currently volatile in Argentina but trending positively in other regions.
  • Environmental sustainability concerns are increasingly shaping industry dynamics, pressuring cement producers to innovate and reduce carbon footprints.

AI-generated summary. Not investment advice. DYOR.

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