Holcim Ltd Fundamental Analysis (SIX: HOLN.SW)
Holcim Ltd (SIX: HOLN.SW) shows moderate financial fundamentals with a PE ratio of 67.13, profit margin of 29.54%, and ROE of 45.64%. The company generates $23.6B in annual revenue with weak year-over-year growth of -40.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HOLN.SW's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHOLN.SW demonstrates superior asset utilization.
Valuation Score
ModerateHOLN.SW shows balanced valuation metrics.
Growth Score
WeakHOLN.SW faces weak or negative growth trends.
Financial Health Score
ExcellentHOLN.SW maintains a strong and stable balance sheet.
Profitability Score
ExcellentHOLN.SW achieves industry-leading margins.
Key Financial Metrics
Is HOLN.SW Expensive or Cheap?
P/E Ratio
HOLN.SW trades at 67.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HOLN.SW's PEG of -0.70 indicates potential undervaluation.
Price to Book
The market values Holcim Ltd at 2.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.11 times EBITDA. This is generally considered low.
How Well Does HOLN.SW Make Money?
Net Profit Margin
For every $100 in sales, Holcim Ltd keeps $29.54 as profit after all expenses.
Operating Margin
Core operations generate 16.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.64 in profit for every $100 of shareholder equity.
ROA
Holcim Ltd generates $19.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Holcim Ltd produces operating cash flow of $4.39B, showing steady but balanced cash generation.
Free Cash Flow
Holcim Ltd generates strong free cash flow of $2.73B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.93 in free cash annually.
FCF Yield
HOLN.SW converts 6.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
67.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How HOLN.SW Stacks Against Its Sector Peers
| Metric | HOLN.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 67.13 | 27.39 | Worse (Expensive) |
| ROE | 45.64% | 1206.00% | Weak |
| Net Margin | 29.54% | 372.00% | Weak |
| Debt/Equity | 0.69 | 0.73 | Neutral |
| Current Ratio | 1.09 | 3.14 | Neutral |
| ROA | 19.25% | 2761.00% | Weak |
HOLN.SW outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Holcim Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-24.75%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-74.74%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-33.14%
Industry Style: Cyclical, Commodity, Value
Declining