FERROVIAL SE (FER) Stock Fundamental Analysis
USA - NASDAQ:FER - NL0015001FS8 - Common Stock
57.57 USD
+0.29 (+0.51%)
57.57 USD
0 (0%)
Overall FER gets a fundamental rating of 5 out of 10. We evaluated FER against 52 industry peers in the Construction & Engineering industry. While FER belongs to the best of the industry regarding profitability, there are 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.
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
Looking at the Return On Assets, with a value of 12.67%, FER belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
FER has a better Return On Equity (57.04%) than 92.31% of its industry peers.
FER has a Return On Invested Capital of 3.63%. This is in the lower half of the industry: FER underperforms 61.54% 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 17.22%.
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 better Profit Margin (35.99%) than 100.00% 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 73.08% of the companies in the same industry.
In the last couple of years the Operating Margin of FER has grown nicely.
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
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.
Compared to 1 year ago, FER has an improved debt to assets ratio.
2.2 Solvency
FER has an Altman-Z score of 1.65. 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 (1.65) is worse than 65.38% of its industry peers.
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.
The Debt to FCF ratio of FER (10.03) 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.
The Debt to Equity ratio of FER (1.72) is worse than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.57
WACC6.34%
2.3 Liquidity
FER has a Current 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.
With a Current ratio value of 0.94, FER is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 76.92% 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 355.69% over the past year.
The Earnings Per Share has been growing by 68.07% on average over the past years. This is a very strong growth
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
FER is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.64% yearly.
The Revenue is expected to grow by 2.88% on average over the next years.
EPS Next Y17.61%
EPS Next 2Y8.02%
EPS Next 3Y11.9%
EPS Next 5Y16.64%
Revenue Next Year5.92%
Revenue Next 2Y4.85%
Revenue Next 3Y4.66%
Revenue Next 5Y2.88%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 10.56, the valuation of FER can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of FER indicates a rather cheap valuation: FER is cheaper than 96.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FER to the average of the S&P500 Index (27.30), we can say FER is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 49.27, the valuation of FER can be described as expensive.
Based on the Price/Forward Earnings ratio, FER is valued a bit more expensive than 63.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, FER is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 49.27 |
4.2 Price Multiples
FER's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FER is more expensive than 67.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FER is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.43 | ||
| EV/EBITDA | 32.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FER may justify a higher PE ratio.
PEG (NY)0.6
PEG (5Y)0.16
EPS Next 2Y8.02%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
FER has a yearly dividend return of 0.72%, which is pretty low.
FER's Dividend Yield is rather good when compared to the industry average which is at 1.58. FER pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, FER's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
3.63% of the earnings are spent on dividend by FER. This is a low number and sustainable payout ratio.
DP3.63%
EPS Next 2Y8.02%
EPS Next 3Y11.9%
57.57
+0.29 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners36.61%
Inst Owner Change3.3%
Ins Owners32.89%
Ins Owner ChangeN/A
Market Cap42.24B
Analysts76
Price Target57.01 (-0.97%)
Short Float %0.15%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)2.27%
PT rev (3m)9.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.9%
EPS NY rev (1m)6.89%
EPS NY rev (3m)6.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 49.27 | ||
| P/S | 3.86 | ||
| P/FCF | 31.43 | ||
| P/OCF | 25.3 | ||
| P/B | 6.11 | ||
| P/tB | 6.77 | ||
| EV/EBITDA | 32.08 |
EPS(TTM)5.45
EY9.47%
EPS(NY)1.17
Fwd EY2.03%
FCF(TTM)1.83
FCFY3.18%
OCF(TTM)2.28
OCFY3.95%
SpS14.93
BVpS9.42
TBVpS8.5
PEG (NY)0.6
PEG (5Y)0.16
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%
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 Turnover0.35
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 | 1.65 |
F-Score7
WACC6.34%
ROIC/WACC0.57
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 Y17.61%
EPS Next 2Y8.02%
EPS Next 3Y11.9%
EPS Next 5Y16.64%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y9.79%
Revenue growth 5Y8.6%
Sales Q2Q%0.92%
Revenue Next Year5.92%
Revenue Next 2Y4.85%
Revenue Next 3Y4.66%
Revenue Next 5Y2.88%
EBIT growth 1Y21.25%
EBIT growth 3Y38.38%
EBIT growth 5YN/A
EBIT Next Year62%
EBIT Next 3Y23.99%
EBIT Next 5Y14.44%
FCF growth 1Y15.28%
FCF growth 3Y24.87%
FCF growth 5Y2.94%
OCF growth 1Y29.55%
OCF growth 3Y24.37%
OCF growth 5Y2.81%