The Monarch Cement Company remains a 'Buy' despite recent share weakness and challenging market conditions, supported by a strong balance sheet and undervaluation. MCEM's Q3 2025 saw revenue and profitability decline due to broader economic headwinds, particularly in Ready-Mixed Concrete, but the Cement Business showed resilience. Compared to peers, MCEM is the cheapest based on earnings and cash flow multiples, with a lower risk profile due to its debt-free status and substantial cash reserves.
MCEM posts lower Q3 revenues and profit as ready-mix volumes drop, margins tighten, and market conditions soften amid weather and portfolio shifts.
MCEM's Q2 earnings rise y/y on higher profits from investments, but revenues fall on weaker concrete sales and margin pressure.
| - Industry | - Sector | Mr. Walter H. Wulf Jr. CEO | OTC PINK Exchange | 609031307 CUSIP |
| US Country | 510 Employees | 14 Feb 2025 Last Dividend | 22 Dec 2014 Last Split | - IPO Date |
The Monarch Cement Company, established in 1908, operates in the manufacturing and selling of portland cement within the United States. The company's business extends to offering a variety of related products and services, including masonry cement, ready-mixed concrete, concrete products, and various building materials. It primarily caters to a diverse clientele such as contractors, ready-mixed concrete plants, concrete products plants, building materials dealers, and governmental agencies. With its base in Humboldt, Kansas, The Monarch Cement Company predominantly markets its products in Kansas, Iowa, southeast Nebraska, western Missouri, northwest Arkansas, and northern Oklahoma, signifying a strong regional presence within these states.
As the company's core product, portland cement is manufactured and sold for use in various construction projects. This product is fundamental for creating concrete, mortar, stucco, and other building materials necessary for construction and infrastructure.
Specifically formulated for masonry work, this product is used in the application of brick, block, and stone. Masonry cement is designed for enhanced workability and bond, making it ideal for both commercial and residential construction projects.
The company provides ready-mixed concrete, a versatile construction material mixed to precise specifications for immediate use in construction sites. This service caters to projects requiring high-quality concrete delivered efficiently and ready for use.
Apart from bulk materials, The Monarch Cement Company also offers concrete products, which include precast items like blocks, pipes, and other specialized components used in a variety of construction projects.
In addition to its cement and concrete products, the company offers an array of building materials to complement its primary offerings. This includes construction aggregates and other materials essential for building construction and landscaping projects.