67.04 USD
-0.37 (-0.55%)
67.04 USD
0 (0%)
Overall FER gets a fundamental rating of 4 out of 10. We evaluated FER against 55 industry peers in the Construction & Engineering industry. FER scores excellent on profitability, but there are concerns on its financial health. FER does not seem to be growing, but still is valued expensively.
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 83.64% of its industry peers.
- Looking at the Return On Equity, with a value of 57.04%, FER belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- FER's Return On Invested Capital of 3.63% is on the low side compared to the rest of the industry. FER is outperformed by 60.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FER is significantly below the industry average of 15.97%.
- 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's Profit Margin of 35.99% is amongst the best of the industry. FER outperforms 98.18% 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 70.91% of its industry peers.
- FER's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 87.83%, FER belongs to the best of the industry, outperforming 100.00% 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 | 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
- 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.
- The number of shares outstanding for FER has been reduced compared to 5 years ago.
- FER has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.83 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 1.83, FER is doing worse than 67.27% of the companies in the same industry.
- 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.
- FER's Debt to Equity ratio of 1.72 is on the low side compared to the rest of the industry. FER is outperformed by 70.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.56
WACC6.49%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that FER may have some problems paying its short term obligations.
- With a Current ratio value of 0.94, FER is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
- A Quick Ratio of 0.86 indicates that FER may have some problems paying its short term obligations.
- FER has a worse Quick ratio (0.86) than 74.55% 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.
- 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%2.78%
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
- Based on the Price/Earnings ratio of 108.13, the valuation of FER can be described as expensive.
- FER's Price/Earnings ratio is a bit more expensive when compared to the industry. FER is more expensive than 63.64% of the companies in the same industry.
- When comparing the Price/Earnings ratio of FER to the average of the S&P500 Index (27.21), we can say FER is valued expensively.
- A Price/Forward Earnings ratio of 163.25 indicates a quite expensive valuation of 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.
- 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 | 108.13 | ||
| Fwd PE | 163.25 |
4.2 Price Multiples
- 63.64% of the companies in the same industry are cheaper than FER, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FER indicates a somewhat cheap valuation: FER is cheaper than 61.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.64 | ||
| EV/EBITDA | 36.53 |
4.3 Compensation for Growth
- The excellent profitability rating of FER 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 1.49%. Purely for dividend investing, there may be better candidates out there.
- FER's Dividend Yield is rather good when compared to the industry average which is at 0.44. FER pays more dividend than 98.18% of the companies in the same industry.
- FER's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
- FER has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
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 2Y-18.72%
EPS Next 3Y-43.08%
FERROVIAL SE / FER FAQ
What is the fundamental rating for FER stock?
ChartMill assigns a fundamental rating of 4 / 10 to FER.
Can you provide the valuation status for FERROVIAL SE?
ChartMill assigns a valuation rating of 2 / 10 to FERROVIAL SE (FER). This can be considered as Overvalued.
How profitable is FERROVIAL SE (FER) stock?
FERROVIAL SE (FER) has a profitability rating of 8 / 10.
What is the expected EPS growth for FERROVIAL SE (FER) stock?
The Earnings per Share (EPS) of FERROVIAL SE (FER) is expected to decline by -55.78% in the next year.
How sustainable is the dividend of FERROVIAL SE (FER) stock?
The dividend rating of FERROVIAL SE (FER) is 4 / 10 and the dividend payout ratio is 3.63%.