Cemex (CHP) vs. Holcim (HLCM), HLCM better results, CHP more likely to be acquired
Cemex Holdings Philippines, Inc. ( CHP ) at 1.46 a share has a market capitalization of 19.69 Billion Pesos while Holcim Philippines, Inc. ( HLCM ) at 5.94 has a market capitalization of 38.33 Billion Pesos. For 1H 2020 HLCM generated 11.4 Billion Pesos of sales while CHP generated just 9.6 Billion Pesos. HLCM was able to translate it sales to cash from operations of 2.4 Billion Pesos while CHP was able to generate cash from operations of a neglible 0.26 Billion Pesos. CHP is saddled with long-term debt of 11.1 Billion Pesos while HLCM is free from long-term debt. Aside from the debt burden, CHP’s balance sheet carries a 27.9 Billion Pesos goodwill which doesn’t count for much given the present COVID-19 pandemic and as evidence by its operating results over the years. The massive goodwill of CHP was created to justify the pricey acquisition of the 40% interest in Solid Cement and Apo Cement which that at that time it didn’t yet own. CHP argued that the massive g...