Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price12.39 USD
Fair value10.09
Ethical score70.0/100
Our investment reviews on this name
2026-07-02Read Markdown10.67+16.1% to today
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Cementos Pacasmayo S.A.A. holds its Markdown at $12.39. Consolidating, no directional conviction, held for 136 days.
As held on the ledger · 2026-09-21
Phase
Markdown · caution
Quantitative state
Consolidating, no directional conviction, held for 136 days
Price at the screen
$12.39
Valuation
17.21 trailing · 14.58 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.12
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
46.03%
Below 33%
Interest-bearing debt is 46.0% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.01%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
5.19%
Below 49%
Money owed to the company is 5.2% of assets, under the 49% limit.
Pass
Revenue purity
0.53%
Below 5%
Only 0.5% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Cementos Pacasmayo S.A.A.'s business is in a permissible area, but its interest-bearing debt is about 46% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
Fair value range in USD, drawn from the 2026-09-21 screen. The gold marker is the market price at the same screen. The price runs 18.6% above the base estimate.
Third-party analyst targets: 3 covering, consensus Hold. The average target sits +5% from the screen price.
Reading the gap · Both our model and the Street see limited upside at this price.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-21 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Peru cement producer commands a steep premium
Picture a builder in Lima needing cement for a new road project. The order flows through local plants and trucks, yet the shares of the supplier sit at a forward multiple of 76 times earnings. That price is 66% above our fair value estimate and leaves no margin of safety in a business whose earnings rise and fall with Peru's construction cycle.
We pass because the numbers do not support the valuation. Revenue is growing at 11%, yet the profit margin is only 8% and return on equity sits at 14%. In a cyclical industry a high multiple often signals peak earnings rather than durable strength, and the ethical screen offers no offset here.
Analyst targets sit higher still, but those forecasts cannot remove the risk that construction spending slows or input costs rise. The shares already price in optimism that history suggests will prove fleeting.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; its business and earnings are exposed to Peru and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
CPAC trades on the NYSE (the company is based in Peru). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-02Markdown$12.39+2.8%Entry 6
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 2.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 19% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 75%. Our forward projection puts the odds of a 10% gain over the next month near 33%. The street (2 analysts) rates it hold, with a mean price target of $13.
2026-08-25Markdown$12.05+3.0%Entry 5
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 3.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 19% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 75%. Our forward projection puts the odds of a 10% gain over the next month near 33%. The street (2 analysts) rates it hold, with a mean price target of $13.
2026-07-25Markdown$11.70+9.7%Entry 4
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 9.7% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 19% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 75%. Our forward projection puts the odds of a 10% gain over the next month near 33%. The street (2 analysts) rates it hold, with a mean price target of $13.
2026-07-18Markdown$10.67+0.0%Entry 3
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 19% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 75%. Our forward projection puts the odds of a 10% gain over the next month near 33%. The street (2 analysts) rates it hold, with a mean price target of $13.
2026-07-03Markdown$10.67+0.0%Entry 2
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markdown$10.67Entry 1
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.