FERROVIAL SE (FER) Stock Fundamental Analysis
USA - NASDAQ:FER - NL0015001FS8 - Common Stock
64.4 USD
+0.83 (+1.31%)
64.4 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FER. FER was compared to 55 industry peers in the Construction & Engineering industry. While FER has a great profitability rating, there are quite some concerns on its financial health. FER has a correct valuation and a medium growth rate.
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.
FER had positive earnings in 4 of the past 5 years.
In the past 5 years FER always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.67%, FER belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
FER has a Return On Equity of 57.04%. This is amongst the best in the industry. FER outperforms 92.73% of its industry peers.
FER has a Return On Invested Capital (3.63%) which is comparable to the rest of the industry.
FER had an Average Return On Invested Capital over the past 3 years of 2.34%. This is significantly below the industry average of 17.10%.
The 3 year average ROIC (2.34%) for FER is below the current ROIC(3.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.67% | ||
| ROE | 57.04% | ||
| ROIC | 3.63% |
ROA(3y)4.52%
ROA(5y)3.3%
ROE(3y)23.24%
ROE(5y)17.1%
ROIC(3y)2.34%
ROIC(5y)1.88%
1.3 Margins
FER has a Profit Margin of 35.99%. This is amongst the best in the industry. FER outperforms 98.18% of its industry peers.
FER's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.13%, FER is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
FER's Operating Margin has improved in the last couple of years.
The Gross Margin of FER (87.83%) is better than 100.00% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
FER has an Altman-Z score of 1.78. This is a bad value and indicates that FER is not financially healthy and even has some risk of bankruptcy.
FER has a worse Altman-Z score (1.78) than 60.00% of its industry peers.
FER has a debt to FCF ratio of 10.03. This is a negative value and a sign of low solvency as FER would need 10.03 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.03, FER perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
A Debt/Equity ratio of 1.72 is on the high side and indicates that FER has dependencies on debt financing.
With a Debt to Equity ratio value of 1.72, FER is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.56
WACC6.52%
2.3 Liquidity
A Current Ratio of 0.94 indicates that FER may have some problems paying its short term obligations.
The Current ratio of FER (0.94) is worse than 74.55% of its industry peers.
FER has a Quick 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. FER is outperformed by 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 355.69% over the past year.
FER shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.07% yearly.
Looking at the last year, FER shows a small growth in Revenue. The Revenue has grown by 5.75% in the last year.
Measured over the past years, FER shows a quite strong growth in Revenue. The Revenue has been growing by 8.60% on average per year.
EPS 1Y (TTM)355.69%
EPS 3Y40.96%
EPS 5Y68.07%
EPS Q2Q%33.34%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y9.79%
Revenue growth 5Y8.6%
Sales Q2Q%0.92%
3.2 Future
The Earnings Per Share is expected to grow by 16.54% on average over the next years. This is quite good.
FER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.79% yearly.
EPS Next Y28.66%
EPS Next 2Y8.76%
EPS Next 3Y12.3%
EPS Next 5Y16.54%
Revenue Next Year5.44%
Revenue Next 2Y4.53%
Revenue Next 3Y4.42%
Revenue Next 5Y2.79%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.93, the valuation of FER can be described as very reasonable.
FER's Price/Earnings ratio is rather cheap when compared to the industry. FER is cheaper than 90.91% of the companies in the same industry.
FER is valuated cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 54.86, which means the current valuation is very expensive for FER.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FER indicates a slightly more expensive valuation: FER is more expensive than 60.00% of the companies listed in the same industry.
FER's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 54.86 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than FER, based on the Enterprise Value to EBITDA ratio.
FER's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.48 | ||
| EV/EBITDA | 35.41 |
4.3 Compensation for Growth
FER's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FER has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FER's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)0.42
PEG (5Y)0.18
EPS Next 2Y8.76%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
FER has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.69, FER pays a better dividend. On top of this FER pays more dividend than 98.18% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, FER is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of FER decreases each year by -10.17%.
FER has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)-10.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
FER pays out 3.63% of its income as dividend. This is a sustainable payout ratio.
DP3.63%
EPS Next 2Y8.76%
EPS Next 3Y12.3%
64.4
+0.83 (+1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners50.53%
Inst Owner Change0.08%
Ins Owners32.7%
Ins Owner ChangeN/A
Market Cap47.25B
Revenue(TTM)9.35B
Net Income(TTM)3.37B
Analysts76
Price Target58.19 (-9.64%)
Short Float %0.19%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.21
Dividend Growth(5Y)-10.17%
DP3.63%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)100.85%
Min Revenue beat(2)-3.79%
Max Revenue beat(2)205.49%
Revenue beat(4)2
Avg Revenue beat(4)50.7%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)205.49%
Revenue beat(8)5
Avg Revenue beat(8)26.51%
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)2.07%
PT rev (3m)8.52%
EPS NQ rev (1m)4.19%
EPS NQ rev (3m)4.19%
EPS NY rev (1m)8.66%
EPS NY rev (3m)16.93%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 54.86 | ||
| P/S | 4.35 | ||
| P/FCF | 35.48 | ||
| P/OCF | 28.56 | ||
| P/B | 6.9 | ||
| P/tB | 7.64 | ||
| EV/EBITDA | 35.41 |
EPS(TTM)5.4
EY8.39%
EPS(NY)1.17
Fwd EY1.82%
FCF(TTM)1.82
FCFY2.82%
OCF(TTM)2.26
OCFY3.5%
SpS14.8
BVpS9.34
TBVpS8.42
PEG (NY)0.42
PEG (5Y)0.18
Graham Number33.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.67% | ||
| ROE | 57.04% | ||
| ROCE | 4.6% | ||
| ROIC | 3.63% | ||
| ROICexc | 4.21% | ||
| ROICexgc | 4.36% | ||
| OM | 10.13% | ||
| PM (TTM) | 35.99% | ||
| GM | 87.83% | ||
| FCFM | 12.27% |
ROA(3y)4.52%
ROA(5y)3.3%
ROE(3y)23.24%
ROE(5y)17.1%
ROIC(3y)2.34%
ROIC(5y)1.88%
ROICexc(3y)3.02%
ROICexc(5y)2.57%
ROICexgc(3y)3.14%
ROICexgc(5y)2.67%
ROCE(3y)2.96%
ROCE(5y)2.38%
ROICexgc growth 3Y23.54%
ROICexgc growth 5YN/A
ROICexc growth 3Y23.9%
ROICexc growth 5YN/A
OM growth 3Y26.04%
OM growth 5YN/A
PM growth 3Y27.17%
PM growth 5Y52.49%
GM growth 3Y4.45%
GM growth 5Y4.25%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 10.03 | ||
| Debt/EBITDA | 7.3 | ||
| Cap/Depr | 62.19% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 2 | ||
| Cash Conversion | 102.22% | ||
| Profit Quality | 34.09% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.78 |
F-Score7
WACC6.52%
ROIC/WACC0.56
Cap/Depr(3y)34.82%
Cap/Depr(5y)40.43%
Cap/Sales(3y)1.58%
Cap/Sales(5y)1.66%
Profit Quality(3y)249.79%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)355.69%
EPS 3Y40.96%
EPS 5Y68.07%
EPS Q2Q%33.34%
EPS Next Y28.66%
EPS Next 2Y8.76%
EPS Next 3Y12.3%
EPS Next 5Y16.54%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y9.79%
Revenue growth 5Y8.6%
Sales Q2Q%0.92%
Revenue Next Year5.44%
Revenue Next 2Y4.53%
Revenue Next 3Y4.42%
Revenue Next 5Y2.79%
EBIT growth 1Y21.25%
EBIT growth 3Y38.38%
EBIT growth 5YN/A
EBIT Next Year56.32%
EBIT Next 3Y22.91%
EBIT Next 5Y14.35%
FCF growth 1Y15.28%
FCF growth 3Y24.87%
FCF growth 5Y2.94%
OCF growth 1Y29.55%
OCF growth 3Y24.37%
OCF growth 5Y2.81%
FERROVIAL SE / FER FAQ
What is the fundamental rating for FER stock?
ChartMill assigns a fundamental rating of 5 / 10 to FER.
What is the valuation status of FERROVIAL SE (FER) stock?
ChartMill assigns a valuation rating of 5 / 10 to FERROVIAL SE (FER). This can be considered as Fairly Valued.
Can you provide the profitability details for FERROVIAL SE?
FERROVIAL SE (FER) has a profitability rating of 8 / 10.
What is the valuation of FERROVIAL SE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FERROVIAL SE (FER) is 11.93 and the Price/Book (PB) ratio is 6.9.
How financially healthy is FERROVIAL SE?
The financial health rating of FERROVIAL SE (FER) is 2 / 10.