FERROVIAL SE (FER) Stock Fundamental Analysis
NASDAQ:FER - Nasdaq - NL0015001FS8 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to FER. FER was compared to 49 industry peers in the Construction & Engineering industry. While FER is still in line with the averages on profitability rating, there are concerns on its financial health. FER has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FER was profitable.
In the past year FER had a positive cash flow from operations.
Of the past 5 years FER 4 years were profitable.
FER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FER has a Return On Assets of 1.71%. This is comparable to the rest of the industry: FER outperforms 45.65% of its industry peers.
Looking at the Return On Equity, with a value of 12.10%, FER is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
With a Return On Invested Capital value of 2.71%, FER is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for FER is significantly below the industry average of 11.92%.
The last Return On Invested Capital (2.71%) for FER is above the 3 year average (2.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 12.1% | ||
| ROIC | 2.71% |
ROA(3y)2.4%
ROA(5y)1.28%
ROE(3y)15.29%
ROE(5y)7.64%
ROIC(3y)2.06%
ROIC(5y)N/A
1.3 Margins
FER's Profit Margin of 5.34% is fine compared to the rest of the industry. FER outperforms 76.09% of its industry peers.
The Operating Margin of FER (6.93%) is better than 67.39% of its industry peers.
FER's Operating Margin has improved in the last couple of years.
The Gross Margin of FER (42.81%) is better than 93.48% of its industry peers.
In the last couple of years the Gross Margin of FER has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.93% | ||
| PM (TTM) | 5.34% | ||
| GM | 42.81% |
OM growth 3Y37.8%
OM growth 5Y2.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.06%
GM growth 5Y2.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FER is destroying value.
The number of shares outstanding for FER has been reduced compared to 1 year ago.
FER has less shares outstanding than it did 5 years ago.
FER has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that FER is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.22, FER is doing worse than 78.26% of the companies in the same industry.
The Debt to FCF ratio of FER is 12.20, which is on the high side as it means it would take FER, 12.20 years of fcf income to pay off all of its debts.
FER has a Debt to FCF ratio of 12.20. This is in the lower half of the industry: FER underperforms 63.04% of its industry peers.
A Debt/Equity ratio of 3.00 is on the high side and indicates that FER has dependencies on debt financing.
The Debt to Equity ratio of FER (3.00) is worse than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3 | ||
| Debt/FCF | 12.2 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.46
WACC5.91%
2.3 Liquidity
FER has a Current Ratio of 0.93. 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 (0.93) than 80.43% 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 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| 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.
The Revenue for FER has decreased by -52.11% in the past year. This is quite bad
FER shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -16.35% yearly.
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%4.16%
3.2 Future
FER is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.76% yearly.
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 80.71 indicates a quite expensive valuation of FER.
65.22% of the companies in the same industry are cheaper than FER, based on the Price/Earnings ratio.
FER's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 121.17 indicates a quite expensive valuation of FER.
67.39% of the companies in the same industry are cheaper than FER, based on the Price/Forward Earnings ratio.
FER is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.71 | ||
| Fwd PE | 121.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FER is valued a bit more expensive than 71.74% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FER.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.66 | ||
| EV/EBITDA | 40.84 |
4.3 Compensation for Growth
FER has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as FER's earnings are expected to decrease with -43.08% in the coming years.
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 2.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.77, FER pays a better dividend. On top of this FER pays more dividend than 97.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, FER pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
The dividend of FER decreases each year by -9.43%.
FER has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)-9.43%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FER pays out 40.44% of its income as dividend. This is a bit on the high side, but may be sustainable.
FER's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP40.44%
EPS Next 2Y-18.72%
EPS Next 3Y-43.08%
NASDAQ:FER (2/21/2025, 8:17:41 PM)
44.39
-0.85 (-1.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners35.66%
Inst Owner Change11.05%
Ins Owners33.85%
Ins Owner ChangeN/A
Market Cap32.39B
Analysts75.38
Price Target45.78 (3.13%)
Short Float %0.21%
Short Ratio14.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Yearly Dividend0.18
Dividend Growth(5Y)-9.43%
DP40.44%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)3.65%
Revenue beat(4)3
Avg Revenue beat(4)2.32%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)4.85%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.03%
PT rev (3m)6.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)10.87%
EPS NY rev (3m)10.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.71 | ||
| Fwd PE | 121.17 | ||
| P/S | 3.64 | ||
| P/FCF | 28.66 | ||
| P/OCF | 26.42 | ||
| P/B | 8.25 | ||
| P/tB | 9.88 | ||
| EV/EBITDA | 40.84 |
EPS(TTM)0.55
EY1.24%
EPS(NY)0.37
Fwd EY0.83%
FCF(TTM)1.55
FCFY3.49%
OCF(TTM)1.68
OCFY3.79%
SpS12.19
BVpS5.38
TBVpS4.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 12.1% | ||
| ROCE | 2.97% | ||
| ROIC | 2.71% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 3.45% | ||
| OM | 6.93% | ||
| PM (TTM) | 5.34% | ||
| GM | 42.81% | ||
| FCFM | 12.71% |
ROA(3y)2.4%
ROA(5y)1.28%
ROE(3y)15.29%
ROE(5y)7.64%
ROIC(3y)2.06%
ROIC(5y)N/A
ROICexc(3y)2.76%
ROICexc(5y)N/A
ROICexgc(3y)2.88%
ROICexgc(5y)N/A
ROCE(3y)2.26%
ROCE(5y)N/A
ROICexcg growth 3Y20.78%
ROICexcg growth 5Y3.94%
ROICexc growth 3Y20.82%
ROICexc growth 5Y3.88%
OM growth 3Y37.8%
OM growth 5Y2.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.06%
GM growth 5Y2.82%
F-Score8
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3 | ||
| Debt/FCF | 12.2 | ||
| Debt/EBITDA | 11.21 | ||
| Cap/Depr | 22.01% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 1.3 | ||
| Cash Conversion | 116.47% | ||
| Profit Quality | 237.8% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.22 |
F-Score8
WACC5.91%
ROIC/WACC0.46
Cap/Depr(3y)33.7%
Cap/Depr(5y)52.62%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.83%
Profit Quality(3y)254.01%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.7%
EPS 3Y3.65%
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y-55.78%
EPS Next 2Y-18.72%
EPS Next 3Y-43.08%
EPS Next 5Y-13.76%
Revenue 1Y (TTM)-52.11%
Revenue growth 3Y-16.35%
Revenue growth 5YN/A
Sales Q2Q%4.16%
Revenue Next Year0.71%
Revenue Next 2Y-30.82%
Revenue Next 3Y-19.97%
Revenue Next 5Y-9.43%
EBIT growth 1Y37.53%
EBIT growth 3Y50.52%
EBIT growth 5Y10.63%
EBIT Next Year125.62%
EBIT Next 3Y39.78%
EBIT Next 5Y30.76%
FCF growth 1Y114.68%
FCF growth 3Y4.73%
FCF growth 5Y47.45%
OCF growth 1Y91.21%
OCF growth 3Y3.42%
OCF growth 5Y28.85%