FERROVIAL SE (FER.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:FER - NL0015001FS8 - Common Stock
56.7 EUR
-0.76 (-1.32%)
FER gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 43 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 expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- FER had positive earnings in the past year.
- FER had a positive operating cash flow in the past year.
- 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
- FER has a better Return On Assets (12.67%) than 90.70% of its industry peers.
- With an excellent Return On Equity value of 57.04%, FER belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.45%, FER is doing worse than 81.40% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FER is significantly below the industry average of 11.17%.
- The last Return On Invested Capital (3.45%) for FER is above the 3 year average (2.22%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 35.99%, FER belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
- 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 65.12% of the companies in the same industry.
- In the last couple of years the Operating Margin of FER has grown nicely.
- The Gross Margin of FER (87.83%) is better than 97.67% of its industry peers.
- FER's Gross Margin has improved in the last couple of years.
| 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.
- Compared to 1 year ago, FER has less shares outstanding
- The number of shares outstanding for FER has been reduced compared to 5 years ago.
- Compared to 1 year ago, FER has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.82 indicates that FER is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.82, FER is in line with its industry, outperforming 44.19% of the companies in the same industry.
- 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 44.19% 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.
- FER has a worse Debt to Equity ratio (1.72) than 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.55
WACC6.32%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that FER may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.94, FER is doing worse than 74.42% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.86, FER is doing worse than 65.12% of the companies in the same industry.
| 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 22.70% over the past year.
- The Earnings Per Share has been growing slightly by 3.65% on average over the past years.
- 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.
- 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
- The Price/Earnings ratio is 106.98, which means the current valuation is very expensive for FER.
- Based on the Price/Earnings ratio, FER is valued expensively inside the industry as 81.40% of the companies are valued cheaper.
- FER's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 161.63, FER can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, FER is valued expensively inside the industry as 86.05% of the companies are valued cheaper.
- When comparing the Price/Forward Earnings ratio of FER to the average of the S&P500 Index (24.26), we can say FER is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.98 | ||
| Fwd PE | 161.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FER is valued more expensive than 83.72% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FER is valued a bit more expensive than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.27 | ||
| EV/EBITDA | 36.47 |
4.3 Compensation for Growth
- FER has an outstanding 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
- With a Yearly Dividend Yield of 1.52%, FER has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.48, FER has a dividend in line with its industry peers.
- 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
- FER pays out 3.63% of its income as dividend. This is a 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%.