Industrias CH Remains A Hold Despite The Recovery In Brazil
Source: SeekingAlpha
2025-03-05 08:12:17 ET
Summary
- Industrias CH's sales and margins have improved in Brazil but face challenges in Mexico, with looming US tariff risks.
- The company trades at an EV/NOPAT multiple of nearly 10x, which I find unattractive for a commoditized business.
- Despite holding significant cash reserves, the Mexican segment's risks and potential US tariffs justify maintaining a Hold rating.
- I expect lower prices ahead due to Mexican-US trade issues and recommend holding Industrias CH for now.
Industrias CH ( ICHBF ) presented 4Q24 results last week (in Spanish).
Since I last analyzed Industrias CH in October 2024 , the company's sales and margins have turned around vis-a-vis last year, signaling a potential reversal in the steel cycle in Brazil, with challenges in Mexico....
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Industrias CH Remains A Hold Despite The Recovery In Brazil
Industrias Ch B Shs
NASDAQ: ICHBF
ICHBF Trading
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