Cementos Pacasmayo For Solid Building In Peru

The basic materials sector includes thirteen industries all related to mining, making and delivering essential commodities. The basic material industries are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; paper; silver; specialty chemicals; steel.

Today I'm reviewing a building materials company, Cementos Pacasmayo S.A.A. It's trading ticker symbol is CPAC

Cementos Pacasmayo SAA is a cement manufacturer in the northern region of Peru. It produces, distributes & sells cement and cement-related materials, such as concrete blocks and ready-mix concrete.

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

Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.

I use three primary keys to gauge dividend equities or funds like Cementos Pacasmayo S.A.A.: 

(1) Price

(2) Dividends

(3) Returns

Added to those three, I'll use four more keys to unlock an equity or fund in which to invest.

Those three primary keys, however, best tell whether a company has made, is making, and will make money. 

CPAC Price

Cementos's price at yesterday's (Monday) market close was $12.23 per share.  A year ago its price was $9.21. Indeed, it gained  $3.02 per share in the past year.  

If Cementos Pacasmayo does as well this coming year its value will increase from $12.23 to $15.25, or about 25%. 

CPAC Dividends

Cementos's most recent annual dividend was $0.54 paid in December.

The annual dividend for 2018 is estimated at $0.54 payable in December

The yield from that $0.54 annual dividend was 4.4% at Monday's $12.23 price.

Gains For CPAC?

Adding the $0.54 dividend to the hypothetical $3.02 estimated year over year price gain shows a potential $3.56 gross gain for the coming year.  

Subtracting the cost to trade Cementos Pacasmayo shares,  $1,000.00 invested at Friday's $12.23 price bought 82 shares. 

Those 82 shares cost broker fees of $10 ($5 at purchase and another $5 at sale) for about $0.12 per share

Subtracting that $0.12 brokerage cost from the estimated $3.56 gross gain leaves a net gain to next year of $3.44

X 82 shares 

= $282.08

or a 28% net gain on a $1,002.86 investment.

Therefore, Cementos Pacasmayo S.A.A. (whose ticker symbol is CPAC), now shows a possible 28% gain by my simple year over year calculation with a 4.4% dividend included. 

Nine analysts cover this stock. One says buy, one says sell, one more says outperform another one says underperform but the majority of five say Hold. 

The nine analyst median target price for next year is $13.00 which is $2 lower than my year over year estimate.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far lower. More study is required for you to determine if Cementos Pacasmayo is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click ...

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