Feb. 18 at 1:46 PM
Over the past decade,
$CX has done a lot of things right. The balance sheet is cleaner. Leverage is down. FCF generation is real. Margins are structurally better. The business today is far more resilient than the Cemex most investors remember from past cycles.
This was operational discipline, asset sales, cost control, and a slow grind toward sanity. Credit where it’s due.
But here’s the issue: the market already knows this.
At current prices, a lot of that progress is priced in. You’re no longer buying a broken company fixing itself. You’re buying a cyclical materials business at a point where expectations are higher and the margin for error is thinner.
I like the business.
I respect the execution.
I don’t like the entry point.
For me, CX is a watchlist stock, not a buy stock at these levels. In cyclicals, valuation is the margin of safety. Right now, that cushion looks… modest.
https://www.beatingthetide.com/p/why-i-respect-cemex-cx-more
