Stock Analysis: Loma Negra Compañía Industrial Argentina Sociedad Anónima

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Loma Negra Cia Industrial Argentina SA (LOMA) is a cement producer in Argentina.

The company operates in five segments: (1) Cement, masonry cement, and lime; (2) Concrete; (3) Rail services; (4) Aggregates; and (5) Others.

The majority of its revenue comes from Cement, masonry cement, and lime segment.

The company was incorporated in 1926 and is based in Buenos Aires, Argentina.

Loma Negra Compañía Industrial Argentina is a subsidiary of InterCement Trading e Inversiones S.A.

Three key data points gauge Loma Negra Cia Industrial Argentina SA , 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.
 

LOMA Price

Over the past year, Loma Negra’s share price rose 43% from $4.79 to $6.85 as of Tuesday’s market close.

If LOMA’s stock trades in the range of $4.00 to $8.00 this next year, its recent $5.90 share price might rise to $7.50 by next year. Of course, LOMAs price could drop about the same $0.65 amount, or more.

My upside estimate of $0.65, however, is $0.17 below the median of 1 yr targets of 5  analysts tracking the stock for brokers.
 

LOMA Dividend

LOMA’s most recent $0.46 variable semi-annual dividend, paid July 12th to shareholders of record June 30th, equates to about $0.81 annually to throw a yield of 11.75% as of Tuesday’s closing price.  Loma’s SA dividend varied between $0.17 and $0.69 last year.
 

LOMA Returns

Adding the $0.81 anticipated annual dividend to Loma Negra Cia Industrial Argentina’s estimated $0.65 price upside, reveals a $1.46 potential gross gain per share for the coming year.

At Tuesday’s $6.85 closing price, a little over $1000 would buy 146 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.07 per share.

Subtracting that maybe $0.07 brokerage cost from my estimated $1.46 gross gain per share makes a net gain amounting to $1.39 X 146 shares = $202.94 for about a 20.25% net gain.

This may be the time to pounce on Loma Negra Cia Industrial Argentina SA . But beware, LOMA’s SA dividend is highly variable, and its price is recovering from a recent low of $3.35 as of May 4, 2020 after achieving an all time high of  $26.89 high in January, 2018. So, expect volatility in both price and dividend from LOMA.

The foregoing article is based on past history of Loma Negra Cia Industrial Argentina SA. The only accurate measure of future performance is from active investment in the company


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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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