WBAG:ACS

Stock Analysis Report

ACS Actividades de Construcción y Servicios

Executive Summary

ACS, Actividades de Construcción y Servicios, S.A.

Rewards

Trading at 35.6% below its fair value

Earnings are forecast to grow 4.93% per year

Earnings grew by 11.6% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

VINCI

ENXTPA:DG

Share Price & News

How has ACS Actividades de Construcción y Servicios's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.3%

ACS

-2.8%

AT Construction

-2.2%

AT Market


1 Year Return

-13.4%

ACS

17.7%

AT Construction

3.6%

AT Market

Return vs Industry: ACS underperformed the Austrian Construction industry which returned 24.8% over the past year.

Return vs Market: ACS underperformed the Austrian Market which returned 9.1% over the past year.


Shareholder returns

ACSIndustryMarket
7 Day-9.3%-2.8%-2.2%
30 Day-10.8%-2.7%-2.9%
90 Day-14.4%-3.2%-2.5%
1 Year-10.7%-13.4%22.2%17.7%7.3%3.6%
3 Yearn/a28.8%15.8%28.4%16.8%
5 Yearn/a60.0%30.9%65.6%42.4%

Price Volatility Vs. Market

How volatile is ACS Actividades de Construcción y Servicios's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ACS Actividades de Construcción y Servicios undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACS (€34.21) is trading below our estimate of fair value (€53.15)

Significantly Below Fair Value: ACS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACS is poor value based on its PE Ratio (10.7x) compared to the Construction industry average (9.6x).

PE vs Market: ACS is good value based on its PE Ratio (10.7x) compared to the Austrian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: ACS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: ACS is overvalued based on its PB Ratio (2.4x) compared to the AT Construction industry average (1.2x).


Next Steps

Future Growth

How is ACS Actividades de Construcción y Servicios forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACS's forecast earnings growth (4.9% per year) is above the savings rate (-0.1%).

Earnings vs Market: ACS's earnings (4.9% per year) are forecast to grow slower than the Austrian market (8.8% per year).

High Growth Earnings: ACS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACS's revenue (2.9% per year) is forecast to grow faster than the Austrian market (2.5% per year).

High Growth Revenue: ACS's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACS's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has ACS Actividades de Construcción y Servicios performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACS has high quality earnings.

Growing Profit Margin: ACS's current net profit margins (2.6%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: ACS's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: ACS's earnings growth over the past year (11.6%) is below its 5-year average (13.5% per year).

Earnings vs Industry: ACS earnings growth over the past year (11.6%) exceeded the Construction industry 8%.


Return on Equity

High ROE: Whilst ACS's Return on Equity (23.89%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ACS Actividades de Construcción y Servicios's financial position?


Financial Position Analysis

Short Term Liabilities: ACS's short term assets (€24.8B) exceed its short term liabilities (€23.2B).

Long Term Liabilities: ACS's short term assets (€24.8B) exceed its long term liabilities (€10.0B).


Debt to Equity History and Analysis

Debt Level: ACS's debt to equity ratio (161.2%) is considered high.

Reducing Debt: ACS's debt to equity ratio has reduced from 233.8% to 161.2% over the past 5 years.

Debt Coverage: ACS's debt is well covered by operating cash flow (20.2%).

Interest Coverage: ACS's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet

Inventory Level: ACS has a low level of unsold assets or inventory.

Debt Coverage by Assets: ACS's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is ACS Actividades de Construcción y Servicios's current dividend yield, its reliability and sustainability?

6.01%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%1.6%markettop25%4.4%industryaverage3.5%forecastin3Years6.4%

Current dividend yield vs market & industry

Notable Dividend: ACS's dividend (5.51%) is higher than the bottom 25% of dividend payers in the Austrian market (1.6%).

High Dividend: ACS's dividend (5.51%) is in the top 25% of dividend payers in the Austrian market (4.17%)


Stability and Growth of Payments

Stable Dividend: ACS's dividend payments have been volatile in the past 10 years.

Growing Dividend: ACS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.7%), ACS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACS's dividends in 3 years are forecast to be well covered by earnings (40.2% payout ratio).


Next Steps

Management

What is the CEO of ACS Actividades de Construcción y Servicios's salary, the management and board of directors tenure and is there insider trading?

16.1yrs

Average board tenure


CEO

Marcelino Fernandez Verdes (64yo)

2.7yrs

Tenure

0

Mr. Marcelino Fernández Verdes, Civ Eng, has been an Executive Chairman of CIMIC Group Limited since June 11, 2014 and its Executive Director since October 10, 2012. Mr. Fernández Verdes has been the Chair ...


Board Age and Tenure

16.1yrs

Average Tenure

71yo

Average Age

Experienced Board: ACS's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€5,79926 Jul 19
José Luis Del Valle Pérez
EntityIndividual
Role
Member of the Board of Directors
General Secretary & Executive Director
Shares11,598
Max Price€0.50
Buy€51,04024 Jul 19
José Javier Echenique Landiribar
EntityIndividual
Shares1,408
Max Price€36.25
Buy€829,00122 Jul 19
Pedro Jose López Jiménez
EntityIndividual
Shares22,869
Max Price€36.25
Buy€188,20005 Mar 19
José Luis Del Valle Pérez
EntityIndividual
Role
Member of the Board of Directors
General Secretary & Executive Director
Shares3,764
Max Price€50.00
Buy€253,93526 Feb 19
Pedro Jose López Jiménez
EntityIndividual
Shares7,425
Max Price€34.20
Buy€15,62921 Feb 19
José Javier Echenique Landiribar
EntityIndividual
Shares457
Max Price€34.20

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Florentino Pérez Rodríguez (72yo)

    Executive Chairman

    • Tenure: 27yrs
    • Compensation: €4.58m
  • Peter Davoren (64yo)

    Chairman & Chief Executive Officer of Turner Construction

    • Ángel Manuel García Altozano (70yo)

      Corporate General Manager

      • Marcelino Fernandez Verdes (64yo)

        CEO & Executive Director

        • Tenure: 2.7yrs
      • Agustín Batuecas Torrego (70yo)

        Executive Director

        • Tenure: 20.6yrs
        • Compensation: €80.00k
      • José Luis Del Valle Pérez (69yo)

        General Secretary & Executive Director

        • Tenure: 30.6yrs
        • Compensation: €2.76m
      • Eugenio Llorente Gómez (72yo)

        Chairman & Chief Executive Officer of Industrial Services

        • Antonio García Ferrer (74yo)

          Vice-Chairman

          • Tenure: 16.1yrs
          • Compensation: €1.74m
        • Cristóbal Valderas Alvarado

          Chief Executive Officer of Clece

          • John DiCiurcio (64yo)

            Chairman & Chief Executive Officer of Flatiron

            • Tenure: 3.7yrs

          Board Members

          • José María Loizaga Viguri (83yo)

            Vice-Chairman

            • Compensation: €400.00k
          • Florentino Pérez Rodríguez (72yo)

            Executive Chairman

            • Tenure: 27yrs
            • Compensation: €4.58m
          • Peter Davoren (64yo)

            Chairman & Chief Executive Officer of Turner Construction

            • Marcelino Fernandez Verdes (64yo)

              CEO & Executive Director

              • Tenure: 2.7yrs
            • Agustín Batuecas Torrego (70yo)

              Executive Director

              • Tenure: 20.6yrs
              • Compensation: €80.00k
            • José Luis Del Valle Pérez (69yo)

              General Secretary & Executive Director

              • Tenure: 30.6yrs
              • Compensation: €2.76m
            • Eugenio Llorente Gómez (72yo)

              Chairman & Chief Executive Officer of Industrial Services

              • Antonio García Ferrer (74yo)

                Vice-Chairman

                • Tenure: 16.1yrs
                • Compensation: €1.74m
              • John DiCiurcio (64yo)

                Chairman & Chief Executive Officer of Flatiron

                • Tenure: 3.7yrs
              • Antonio Botella García (72yo)

                Independent Director

                • Tenure: 4.8yrs
                • Compensation: €84.00k

              Company Information

              ACS, Actividades de Construcción y Servicios, S.A.'s company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: ACS, Actividades de Construcción y Servicios, S.A.
              • Ticker: ACS
              • Exchange: WBAG
              • Founded:
              • Industry: Construction and Engineering
              • Sector: Capital Goods
              • Market Cap: €9.579b
              • Shares outstanding: 304.37m
              • Website: https://www.grupoacs.com

              Number of Employees


              Location

              • ACS, Actividades de Construcción y Servicios, S.A.
              • Avenida de Pío XII, 102
              • Madrid
              • Madrid
              • 28036
              • Spain

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              ACSA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1990
              ACSBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEUROct 1990
              OCI1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1990
              0HACLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1990
              ACSEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1990
              ACSWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 1990
              OCI1ETLX (Eurotlx)YesOrdinary SharesITEUROct 1990
              ACSA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

              Biography

              ACS, Actividades de Construcción y Servicios, S.A. provides construction and related services in Spain, Rest of Europe, North America, South America, the Asia Pacific, and Africa. The company operates through Construction, Industrial Services, and Services segments. The Construction segment undertakes projects, including construction of civil work projects, such as highways, railways, ports, and airport works; residential buildings, social facilities and installations, and infrastructure services, such as railway, transport, communication and technology, energy, resource, water, and defense sectors; and contracts for the provision of mining services and infrastructure required for mining activities. The Industrial Services segment is involved in the industrial maintenance contracts and services, as well as support services to the clients’ operational activities, including electricity, gas, and water distribution network maintenance services; construction, installation, and maintenance services for high-voltage electricity networks, telecommunications systems, rail and electricity facilities, mechanical assemblies, marine platforms and artifacts, and air conditioning systems; and installation and operational control systems for industrial and municipal services, as well as the execution of EPC projects for the design, construction, and commissioning of projects connected to the energy sector. The Services segment offers services for people, such as care for the elderly, as well as managing playschools, nursery schools, or restorations in communities; for buildings, including maintenance, energy efficiency, cleaning, security, logistics, and ancillary; and to the city and the environment comprising public lighting, environmental, and airport services. ACS, Actividades de Construcción y Servicios, S.A. is headquartered in Madrid, Spain. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/27 22:31
              End of Day Share Price2020/01/27 00:00
              Earnings2019/09/30
              Annual Earnings2018/12/31


              Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.