The Monarch Cement Company
The Monarch Cement Company Fundamental Analysis
The Monarch Cement Company (MCEM) shows moderate financial fundamentals with a PE ratio of 14.93, profit margin of 26.03%, and ROE of 15.38%. The company generates $0.2B in annual revenue with weak year-over-year growth of 2.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MCEM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMCEM demonstrates superior asset utilization.
Valuation Score
ExcellentMCEM trades at attractive valuation levels.
Growth Score
WeakMCEM faces weak or negative growth trends.
Financial Health Score
ExcellentMCEM maintains a strong and stable balance sheet.
Profitability Score
ExcellentMCEM achieves industry-leading margins.
Key Financial Metrics
Is MCEM Expensive or Cheap?
P/E Ratio
MCEM trades at 14.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MCEM's PEG of 1.30 indicates fair valuation.
Price to Book
The market values The Monarch Cement Company at 2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.37 times EBITDA. This is generally considered low.
How Well Does MCEM Make Money?
Net Profit Margin
For every $100 in sales, The Monarch Cement Company keeps $26.03 as profit after all expenses.
Operating Margin
Core operations generate 27.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.38 in profit for every $100 of shareholder equity.
ROA
The Monarch Cement Company generates $13.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Monarch Cement Company generates strong operating cash flow of $50.01M, reflecting robust business health.
Free Cash Flow
The Monarch Cement Company generates strong free cash flow of $25.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.64 in free cash annually.
FCF Yield
MCEM converts 5.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How MCEM Stacks Against Its Sector Peers
| Metric | MCEM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.93 | 24.98 | Better (Cheaper) |
| ROE | 15.38% | 907.00% | Weak |
| Net Margin | 26.03% | -105736.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.56 | Strong (Low Leverage) |
| Current Ratio | 9.95 | 5.08 | Strong Liquidity |
| ROA | 13.11% | -10264.00% (disorted) | Strong |
MCEM outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Monarch Cement Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.05%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
110.08%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
118.94%
Industry Style: Cyclical, Commodity, Value
High Growth