FERROVIAL SE (FER.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:FER - NL0015001FS8 - Common Stock
56.84 EUR
-0.88 (-1.52%)
Taking everything into account, FER scores 4 out of 10 in our fundamental rating. FER was compared to 45 industry peers in the Construction & Engineering industry. While FER has a great profitability rating, there are quite some concerns on its financial health. FER is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year FER was profitable.
- FER had a positive operating cash flow in the past year.
- FER had positive earnings in 4 of the past 5 years.
- FER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FER has a better Return On Assets (12.67%) than 91.11% of its industry peers.
- FER has a Return On Equity of 57.04%. This is amongst the best in the industry. FER outperforms 88.89% of its industry peers.
- FER has a Return On Invested Capital of 3.45%. This is in the lower half of the industry: FER underperforms 77.78% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FER is significantly below the industry average of 11.32%.
- The 3 year average ROIC (2.22%) for FER is below the current ROIC(3.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.67% | ||
| ROE | 57.04% | ||
| ROIC | 3.45% |
ROA(3y)4.52%
ROA(5y)3.3%
ROE(3y)23.24%
ROE(5y)17.1%
ROIC(3y)2.22%
ROIC(5y)1.79%
1.3 Margins
- The Profit Margin of FER (35.99%) is better than 93.33% of its industry peers.
- In the last couple of years the Profit Margin of FER has grown nicely.
- FER has a better Operating Margin (10.13%) than 66.67% of its industry peers.
- FER's Operating Margin has improved in the last couple of years.
- FER's Gross Margin of 87.83% is amongst the best of the industry. FER outperforms 97.78% of its industry peers.
- In the last couple of years the Gross Margin of FER has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.13% | ||
| PM (TTM) | 35.99% | ||
| GM | 87.83% |
OM growth 3Y26.04%
OM growth 5YN/A
PM growth 3Y27.17%
PM growth 5Y52.49%
GM growth 3Y4.45%
GM growth 5Y4.25%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FER is destroying value.
- FER has less shares outstanding than it did 1 year ago.
- FER has less shares outstanding than it did 5 years ago.
- FER has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.81 indicates that FER is not a great score, but indicates only limited risk for bankruptcy at the moment.
- FER has a Altman-Z score of 1.81. This is comparable to the rest of the industry: FER outperforms 46.67% of its industry peers.
- The Debt to FCF ratio of FER is 10.03, which is on the high side as it means it would take FER, 10.03 years of fcf income to pay off all of its debts.
- FER has a Debt to FCF ratio (10.03) which is comparable to the rest of the industry.
- FER has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of FER (1.72) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.55
WACC6.32%
2.3 Liquidity
- FER has a Current Ratio of 0.94. This is a bad value and indicates that FER is not financially healthy enough and could expect problems in meeting its short term obligations.
- FER has a worse Current ratio (0.94) than 73.33% of its industry peers.
- A Quick Ratio of 0.86 indicates that FER may have some problems paying its short term obligations.
- FER's Quick ratio of 0.86 is on the low side compared to the rest of the industry. FER is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- FER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.70%, which is quite impressive.
- FER shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.65% yearly.
- FER shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -52.11%.
- The Revenue for FER have been decreasing by -16.35% on average. This is quite bad
EPS 1Y (TTM)22.7%
EPS 3Y3.65%
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-52.11%
Revenue growth 3Y-16.35%
Revenue growth 5YN/A
Sales Q2Q%2.78%
3.2 Future
- Based on estimates for the next years, FER will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.76% on average per year.
- Based on estimates for the next years, FER will show a decrease in Revenue. The Revenue will decrease by -9.43% on average per year.
EPS Next Y-55.78%
EPS Next 2Y-18.72%
EPS Next 3Y-43.08%
EPS Next 5Y-13.76%
Revenue Next Year0.71%
Revenue Next 2Y-30.82%
Revenue Next 3Y-19.97%
Revenue Next 5Y-9.43%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 107.25 indicates a quite expensive valuation of FER.
- Compared to the rest of the industry, the Price/Earnings ratio of FER indicates a slightly more expensive valuation: FER is more expensive than 77.78% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of FER to the average of the S&P500 Index (28.60), we can say FER is valued expensively.
- A Price/Forward Earnings ratio of 162.03 indicates a quite expensive valuation of FER.
- FER's Price/Forward Earnings ratio is rather expensive when compared to the industry. FER is more expensive than 82.22% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of FER to the average of the S&P500 Index (25.83), we can say FER is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.25 | ||
| Fwd PE | 162.03 |
4.2 Price Multiples
- FER's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FER is more expensive than 77.78% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FER is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.36 | ||
| EV/EBITDA | 36.14 |
4.3 Compensation for Growth
- The excellent profitability rating of FER may justify a higher PE ratio.
- FER's earnings are expected to decrease with -43.08% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.72%
EPS Next 3Y-43.08%
5. Dividend
5.1 Amount
- FER has a Yearly Dividend Yield of 1.52%.
- FER's Dividend Yield is comparable with the industry average which is at 2.33.
- FER's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 3.63% of the earnings are spent on dividend by FER. This is a low number and sustainable payout ratio.
DP3.63%
EPS Next 2Y-18.72%
EPS Next 3Y-43.08%
FERROVIAL SE / FER.AS FAQ
What is the fundamental rating for FER stock?
ChartMill assigns a fundamental rating of 4 / 10 to FER.AS.
Can you provide the valuation status for FERROVIAL SE?
ChartMill assigns a valuation rating of 1 / 10 to FERROVIAL SE (FER.AS). This can be considered as Overvalued.
How profitable is FERROVIAL SE (FER.AS) stock?
FERROVIAL SE (FER.AS) has a profitability rating of 8 / 10.
What is the expected EPS growth for FERROVIAL SE (FER.AS) stock?
The Earnings per Share (EPS) of FERROVIAL SE (FER.AS) is expected to decline by -55.78% in the next year.
How sustainable is the dividend of FERROVIAL SE (FER.AS) stock?
The dividend rating of FERROVIAL SE (FER.AS) is 3 / 10 and the dividend payout ratio is 3.63%.