Caribbean Cement Company Equity Analysis

Recommendation

We believe Caribbean Cement will realize significant growth in 2021 and beyond, spurred by significant growth in the construction industry and in turn, the high demand for cement. In 2020, the company repositioned its balance sheet significantly by reducing its debt burden, a strategic move we believe will pay dividends in 2021 as the company’s interest costs are reduced and its FX exposure minimized. This positive outlook is reflected in our fair value estimate which implies the company is undervalued by double digits. With that said, we maintain or OVERWEIGHT recommendation for this stock.

Stock CCC
Close Price 67.48
Estimated Fair Value 87.98
Year to Date Return 7.44%
Dividend Yield 0.00%
Trailing P/E 17.95x
Forward P/E 14.61x
Potential Upside 30.38%
Recommendation OVERWEIGHT

As at March 29, 2021

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