Current Analysis: Cementos Pacasmayo (CPAC)

Cementos Pacasmayo SAA (CPAC) is a Peruvian cement company that primarily produces, distributes, and sells cement and cement-related materials, such as concrete blocks and ready-mix concrete.

The company's products are primarily used in construction. It also produces and sells quicklime for use in mining operations. The small-cap company sells its products mainly in the northern part of Peru.

It owns three cement production facilities. Its flagship Pacasmayo facility is located in the northwest region of Peru, while its new cement plant in Piura and smaller Rioja facility are located in the northeast region of Peru.

The company was incorporated in 1949 and is headquartered in Lima, Peru.

Cementos Pacasmayo S.A.A. operates as a subsidiary of Inversiones ASPI S.A.

Three key data points gauge Cementos Pacsmayo SAA or any dividend-paying firm. The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

CPAC Price

Over the past year, CPAC’s share price rose 19.3% from $5.28 to $6.30 as of Friday’s market close.

If CPAC shares trade in the range of $4.50 to $9.00 this next year, its recent $6.30 share price might rise to $7.00 by next year. Of course, CPAC’s price could drop about the same $0.70 estimated amount, or more.

My annual upside estimate of $0.70 however, is calculated at about  $0.32 below CPAC’s past-year price gain.

CPAC Dividend

Cementos Pacsmayo SAA has paid variable annual dividends since December, 2012. CPAC’s recent A dividend of $0.54 was declared November 9, 2023 to shareholders of record November 22nd and payout was made December 19th.

A forward looking $0.54 annual dividend yields 8.57% at Friday’s $6.30 share price.

CPAC Returns

To put it all together, add Cementos Pacsmayo SAA stated annual dividend of $0.54 to the estimated price upside of $0.70 to find a $1.24 gross gain.

At Friday’s $6.30 share price, a little over $1000 would buy 159 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.06 per share.

Subtracting that likely $0.06 brokerage cost from the $1.24 gross gain produces a net gain of $1.18 X 159 shares = $187.62 for a 18.7% estimated net gain on the year.

You might choose to pounce on Cementos Pacsmayo SAA It is a 75 year old dividend paying Peruvian cement company.  Furthermore, the estimated $85.70 annual dividend income from $1k invested is 13.6 times greater than CPAC’s recent $6.30 single share price.

The exact track of Cementos Pacsmayo SAA’s ongoing future price and dividend will be determined by market action.

Remember, the true value of any stock is best realized through personal ownership of shares.

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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