Is Bouygues SA (EPA:EN) Potentially Undervalued?
Today we're going to take a look at the well-established Bouygues SA ( EPA:EN ). The company's stock saw significant...
Has the French Construction Industry valuation changed over the past few years?
|Fri, 21 Jan 2022||€81.8b||€117.2b||€4.4b||14.8x|
|Sun, 19 Dec 2021||€74.4b||€117.2b||€4.4b||14.8x|
|Tue, 16 Nov 2021||€80.9b||€117.3b||€4.5b||15.8x|
|Thu, 14 Oct 2021||€77.1b||€117.3b||€4.5b||15.6x|
|Sat, 11 Sep 2021||€77.2b||€117.3b||€4.5b||14.5x|
|Mon, 09 Aug 2021||€76.9b||€117.3b||€4.5b||14.1x|
|Sun, 02 May 2021||€78.1b||€111.8b||€3.3b||19.4x|
|Wed, 03 Feb 2021||€66.8b||€108.0b||€2.4b||27.2x|
|Sat, 07 Nov 2020||€58.5b||€109.7b||€2.5b||22x|
|Fri, 31 Jul 2020||€63.3b||€110.8b||€2.8b||25.4x|
|Mon, 04 May 2020||€63.0b||€115.8b||€4.2b||17x|
|Thu, 06 Feb 2020||€85.1b||€119.5b||€5.4b||14.1x|
|Sun, 10 Nov 2019||€84.2b||€117.9b||€5.5b||14.6x|
|Sat, 03 Aug 2019||€78.1b||€115.6b||€5.3b||17.2x|
|Tue, 07 May 2019||€76.6b||€113.2b||€5.2b||16.8x|
|Fri, 08 Feb 2019||€67.4b||€110.3b||€5.1b||13.6x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 18.6x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Construction industry have declined 5.4% per year over the last three years, while revenues for these companies have grown 2.0% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Which industries have driven the changes within the French Construction industry?
|Construction and Engineering||2.40%|
Industry PE: Investors are most optimistic about the Construction and Engineering industry even though it's trading below its 3-year average PE ratio of 18.6x. However analysts are expecting annual earnings growth of 15%, which is lower than the prior year's growth of 97% per year. So the market might believe that analysts are underestimating future growth.
Forecasted Growth: Analysts are most optimistic on the Construction and Engineering industry, expecting annual earnings growth of 15% over the next 5 years. However this is lower than its past earnings growth rate of 97% per year.