FERROVIAL SE (FER) Stock Fundamental Analysis
NASDAQ:FER - Nasdaq - NL0015001FS8 - Common Stock - Currency: USD
FER gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 49 industry peers in the Construction & Engineering industry. FER scores excellent on profitability, but 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.
In the past 5 years FER always reported a positive cash flow from operatings.
1.2 Ratios
FER has a Return On Assets of 11.17%. This is amongst the best in the industry. FER outperforms 81.63% of its industry peers.
The Return On Equity of FER (53.32%) is better than 95.92% of its industry peers.
FER has a Return On Invested Capital of 3.14%. This is in the lower half of the industry: FER underperforms 63.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FER is significantly below the industry average of 16.67%.
The 3 year average ROIC (2.34%) for FER is below the current ROIC(3.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 53.32% | ||
| ROIC | 3.14% |
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 better Profit Margin (35.41%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of FER has grown nicely.
Looking at the Operating Margin, with a value of 9.85%, FER is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
FER's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 44.04%, FER belongs to the best of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Gross Margin of FER has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.85% | ||
| PM (TTM) | 35.41% | ||
| GM | 44.04% |
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
FER has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.46. This is a bad value and indicates that FER is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FER (1.46) is worse than 65.31% of its industry peers.
The Debt to FCF ratio of FER is 12.41, which is on the high side as it means it would take FER, 12.41 years of fcf income to pay off all of its debts.
FER has a Debt to FCF ratio (12.41) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.90 is on the high side and indicates that FER has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.90, FER is doing worse than 75.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 12.41 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.5
WACC6.29%
2.3 Liquidity
A Current Ratio of 1.22 indicates that FER should not have too much problems paying its short term obligations.
FER has a Current ratio (1.22) which is in line with its industry peers.
FER has a Quick Ratio of 1.14. This is a normal value and indicates that FER is financially healthy and should not expect problems in meeting its short term obligations.
FER has a worse Quick ratio (1.14) than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.70% over the past year.
Measured over the past 5 years, FER shows a small growth in Earnings Per Share. The EPS has been growing by 3.65% on average per year.
The Revenue for FER has decreased by -52.11% in the past year. This is quite bad
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%9.58%
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.
The Revenue is expected to decrease by -9.43% on average over the next years.
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 84.69 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 63.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.52, FER is valued quite expensively.
Based on the Price/Forward Earnings ratio of 128.12, the valuation of FER can be described as expensive.
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 69.39% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. FER is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.69 | ||
| Fwd PE | 128.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FER is valued a bit more expensive than 67.35% 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 | 31.96 | ||
| EV/EBITDA | 30.57 |
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 return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 1.62, FER pays a better dividend. On top of this FER pays more dividend than 91.84% of the companies listed in the same industry.
With a Dividend Yield of 0.78, FER pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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
4.01% of the earnings are spent on dividend by FER. This is a low number and sustainable payout ratio.
The Dividend Rate of FER has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP4.01%
EPS Next 2Y-18.72%
EPS Next 3Y-43.08%
52.51
-0.06 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners36.61%
Inst Owner Change0%
Ins Owners32.89%
Ins Owner ChangeN/A
Market Cap38.53B
Analysts76.92
Price Target53.63 (2.13%)
Short Float %0.1%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend0.21
Dividend Growth(5Y)-10.17%
DP4.01%
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)0.56%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2%
Revenue beat(4)2
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-2.64%
Max Revenue beat(4)3.65%
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)2.76%
PT rev (3m)10.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-66.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.69 | ||
| Fwd PE | 128.12 | ||
| P/S | 3.61 | ||
| P/FCF | 31.96 | ||
| P/OCF | 26.22 | ||
| P/B | 5.43 | ||
| P/tB | 6.05 | ||
| EV/EBITDA | 30.57 |
EPS(TTM)0.62
EY1.18%
EPS(NY)0.41
Fwd EY0.78%
FCF(TTM)1.64
FCFY3.13%
OCF(TTM)2
OCFY3.81%
SpS14.56
BVpS9.67
TBVpS8.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 53.32% | ||
| ROCE | 3.97% | ||
| ROIC | 3.14% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 4.12% | ||
| OM | 9.85% | ||
| PM (TTM) | 35.41% | ||
| GM | 44.04% | ||
| FCFM | 11.28% |
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%
ROICexcg growth 3Y23.54%
ROICexcg 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 12.41 | ||
| Debt/EBITDA | 8.6 | ||
| Cap/Depr | 51.25% | ||
| Cap/Sales | 2.47% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 93.74% | ||
| Profit Quality | 31.86% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.46 |
F-Score7
WACC6.29%
ROIC/WACC0.5
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)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%9.58%
Revenue Next Year0.71%
Revenue Next 2Y-30.82%
Revenue Next 3Y-19.97%
Revenue Next 5Y-9.43%
EBIT growth 1Y52.71%
EBIT growth 3Y38.38%
EBIT growth 5YN/A
EBIT Next Year62%
EBIT Next 3Y23.99%
EBIT Next 5Y20.59%
FCF growth 1Y-9.71%
FCF growth 3Y24.87%
FCF growth 5Y2.94%
OCF growth 1Y2.36%
OCF growth 3Y24.37%
OCF growth 5Y2.81%