General presentation of Cemex :
The Cemex Group is a Mexican company specialising in building materials. Its name is the acronym of Cementos Mexicanos, which literally means Mexican Cement. As you will now understand, Cemex specialises in cement, but also in concrete, which is nothing more than a derivative of cement, and in aggregates.
In terms of the distribution of products offered by Cemex in terms of turnover, the production and sale of cement and concrete are equally split between the production and sale of cement and concrete, which represent a fair share of 40% of turnover. The remainder of its turnover is generated by the sale of aggregates.
It should be noted that the Cemex group is an important group in the construction sector since it has very large market shares in many countries. In particular, it has more than 50% of the market share in Venezuela and 19% of the market share in France. This group is notably ranked first in the world in the concrete sector and third in the cement sector behind Lafarge and Holcim.
Of course, this Mexican company is particularly present in its own country. However, it also achieves a large part of its turnover in the rest of the world. In particular, the company has a strong presence in the United States and Europe. The Cemex group employs more than 70,000 people worldwide.
Cemex is headquartered in Monterry, Mexico, and its shares are listed on the Mexican Stock Exchange, although they are also listed on the NYSE. The Mexican stock market index to which it is linked is the CPI index.
Know the competition of the Cemex share :
In order to be able to implement a concrete and coherent investment strategy on Cemex's share price, it is of course essential to know who its main competitors are. We have indeed seen above that Cemex is the world leader in the concrete sector, but only in third place for cement.
- Main: The two companies that are ahead of him in this field therefore deserve to be known. They are Lafarge and Holcim, which have moreover recently merged into a single entity, which largely explains their position as market leaders.
- Others: Then come other competitors with the Chinese company Anhui Conch in second place and CNBM, also based in China, in fourth place. In fifth place is the German company Heidelberg. Then come the companies Italcementi, China Resources, Taiwan Cement, Eurocement and Votorantim.
The strategic alliances set up by the Cemex group :
The Cemex group has always been able to take advantage of the various alliances it has been able to set up with competitors or companies operating in other, sometimes complementary, sectors of activity. To better understand the value of such partnerships, here are a few of the most recent alliances set up by this group.
- VNF: First of all, and in 2009, the Cemex group joined forces with several other companies such as VNF or Voies Navigables de France and Compagnie du Rhône, with the aim of working together to develop river logistics following the information resulting from the Grenelle Environment Forum. As part of their collaboration, these entities have worked to prioritise the use of waterways and barges in order to drastically reduce CO2 emissions linked to the transport of aggregates. Thanks to this partnership, Cemex has been able to restore its brand image.
- Edycem Biplan: In 2016, the Cemex France group joined forces with the company Edycem Biplan in order to set up a partnership for the distribution of the Thermoform constructive solution. This solution, launched in 2013 by Cemex, aims to simplify construction sites for individual houses and small collectives in association with the insulating formwork block of the Biplan baton, which is manufactured in France by its associate. Since this association, Cemex's thermoform offer has consisted of an insulating formwork block, concrete and an additional pumping service.
- LPO: More recently, in 2017, Cemex joined forces with the LPO or Ligue Protectrice des Oiseaux (League for the Protection of Birds) to renew a partnership aimed at improving biodiversity conservation for the fourteenth consecutive year. The two entities are thus pooling their know-how to work together to improve biodiversity while maintaining their operational objectives. It includes sustainable development issues, monitoring and scientific research, educational actions and communication. Here again, the aim for Cemex France is to continue to attract potential customers with a modern and environmentally friendly image.
The advantages and strengths of the Cemex share as a stock market asset :
- First of all, it should be noted that the group benefits from a very broad international positioning since it sells cement, concrete and aggregates in more than 50 different countries. Thanks to this good distribution of its sales, the group effectively protects itself against the economic risks associated with a single geographical area.
- The Cemex group can also count on a very large workforce. Indeed, with no less than 40,000 employees worldwide and a very large number of production sites around the world, the company can respond effectively to demand.
- Cemex can also rely on its long experience to reassure its potential customers, as it has been in business for over 100 years and thus enjoys a solid reputation for the quality of its products.
- While the Cemex group has been able to develop effectively throughout the world, it also benefits from a strong position in its home country, Mexico.
- Cemex is also known as one of the world market leaders, particularly thanks to the distribution of these products, which have received the most media coverage. For example, the company supplied specialty cement for the FifaWorldCup 2014 stadium, thereby increasing its equity and gaining notoriety. The group has also been involved in other major projects in Europe, including the construction of the largest Audi showroom in northern Germany.
- Finally, and to conclude with the company's strengths, it should be noted that it has a good corporate image with the general public thanks to its solid value system, which is largely based on collaboration, integrity and leadership.
The disadvantages and weaknesses of the Cemex share as a stock exchange asset :
- First of all, and despite a strong international presence, the Cemex group still makes more than a third of its total sales in Mexico. It is therefore still very exposed to the risk of recession in this country, particularly in the construction, building and real estate sectors. To protect itself effectively against this risk, Cemex still needs to make efforts to market its products elsewhere in the world, for example by diversifying its activities more effectively.
- Finally, the second and final defect of the Cemex company concerns the judgment it is the target of each of its deviations or errors. As one of the leaders in its market, it must do everything possible to maintain its brand image and remain a caring and reassuring company.