WBAG:EN

Stock Analysis Report

Executive Summary

Bouygues SA, together with its subsidiaries, operates in the construction, telecom, and media sectors in France and internationally.

Rewards

Trading at 14.1% below its fair value

Earnings are forecast to grow 4.72% per year

Earnings grew by 19.2% over the past year

Pays a high and reliable dividend of 4.43%

Risk Analysis

Has a high level of debt



Snowflake Analysis

6 star dividend payer with proven track record.


Similar Companies

Share Price & News

How has Bouygues's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.4%

EN

-2.8%

AT Construction

-2.2%

AT Market


1 Year Return

18.5%

EN

17.7%

AT Construction

3.6%

AT Market

Return vs Industry: EN underperformed the Austrian Construction industry which returned 20.1% over the past year.

Return vs Market: EN exceeded the Austrian Market which returned 9.1% over the past year.


Shareholder returns

ENIndustryMarket
7 Day-3.4%-2.8%-2.2%
30 Day-4.3%-2.7%-2.9%
90 Day-4.1%-3.2%-2.5%
1 Year24.5%18.5%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 Bouygues's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bouygues undervalued compared to its fair value and its price relative to the market?

17.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EN (€38.21) is trading below our estimate of fair value (€44.49)

Significantly Below Fair Value: EN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EN is poor value based on its PE Ratio (10.3x) compared to the Construction industry average (9.6x).

PE vs Market: EN is good value based on its PE Ratio (10.3x) compared to the Austrian market (14.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EN is overvalued based on its PB Ratio (1.5x) compared to the AT Construction industry average (1.2x).


Next Steps

Future Growth

How is Bouygues forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EN's forecast earnings growth (4.7% per year) is above the savings rate (-0.1%).

Earnings vs Market: EN's earnings (4.7% per year) are forecast to grow slower than the Austrian market (8.8% per year).

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

Revenue vs Market: EN's revenue (1.6% per year) is forecast to grow slower than the Austrian market (2.5% per year).

High Growth Revenue: EN's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EN's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Bouygues performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EN has high quality earnings.

Growing Profit Margin: EN's current net profit margins (3.6%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: EN has become profitable over the past 5 years, growing earnings by 32% per year.

Accelerating Growth: EN's earnings growth over the past year (19.2%) is below its 5-year average (32% per year).

Earnings vs Industry: EN earnings growth over the past year (19.2%) exceeded the Construction industry 8%.


Return on Equity

High ROE: EN's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bouygues's financial position?


Financial Position Analysis

Short Term Liabilities: EN's short term assets (€20.5B) do not cover its short term liabilities (€20.8B).

Long Term Liabilities: EN's short term assets (€20.5B) exceed its long term liabilities (€8.7B).


Debt to Equity History and Analysis

Debt Level: EN's debt to equity ratio (67.3%) is considered high.

Reducing Debt: EN's debt to equity ratio has reduced from 91.3% to 67.3% over the past 5 years.

Debt Coverage: EN's debt is well covered by operating cash flow (30%).

Interest Coverage: EN's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet

Inventory Level: EN has a high level of physical assets or inventory.

Debt Coverage by Assets: EN's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Bouygues's current dividend yield, its reliability and sustainability?

4.63%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.6%markettop25%4.4%industryaverage3.5%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: EN's dividend (4.43%) is higher than the bottom 25% of dividend payers in the Austrian market (1.6%).

High Dividend: EN's dividend (4.43%) is in the top 25% of dividend payers in the Austrian market (4.17%)


Stability and Growth of Payments

Stable Dividend: EN's dividends per share have been stable in the past 10 years.

Growing Dividend: EN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), EN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EN's dividends in 3 years are forecast to be well covered by earnings (48.5% payout ratio).


Next Steps

Management

What is the CEO of Bouygues's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average management tenure


CEO

Martin Bouygues (67yo)

30.3yrs

Tenure

€2,653,522

Compensation

Mr. Martin Bouygues has been the Chief Executive Officer and Chairman at Bouygues SA since September 5, 1989. Mr. Bouygues is employed at Saipem s.a. He serves as Administrator/Chairman and Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD2.95M) is about average for companies of similar size in the Austrian market ($USD3.76M).

Compensation vs Earnings: Martin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.1yrs

Average Tenure

62yo

Average Age

Experienced Management: EN's management team is seasoned and experienced (8.1 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: EN's board of directors are considered experienced (8.8 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.


Ownership Breakdown

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


Management Team

  • Martin Bouygues (67yo)

    Chairman & CEO

    • Tenure: 30.3yrs
    • Compensation: €2.65m
  • Olivier Bouygues (69yo)

    Deputy CEO & Director

    • Tenure: 35.6yrs
    • Compensation: €1.48m
  • Gilles Christian Pélisson (62yo)

    Chairman & CEO of TF1

    • Tenure: 3.9yrs
  • Christophe Liénard

    Group Chief Innovation Officer

    • Emmanuel Forest (60yo)

      Senior Vice President of Institutional & European Affairs

      • Philippe Marien (63yo)

        Deputy CEO

        • Tenure: 12.3yrs
        • Compensation: €2.62m
      • Olivier Roussat (55yo)

        Deputy Chief Executive Officer

        • Tenure: 3.4yrs
        • Compensation: €1.57m
      • Pierre Auberger

        Group Corporate Communications Director

        • Karine Gruson

          Investor Relations Director

          • Arnauld Van Eeckhout (62yo)

            General Counsel

            • Tenure: 1.6yrs

          Board Members

          • Martin Bouygues (67yo)

            Chairman & CEO

            • Tenure: 30.3yrs
            • Compensation: €2.65m
          • Olivier Bouygues (69yo)

            Deputy CEO & Director

            • Tenure: 35.6yrs
            • Compensation: €1.48m
          • Helman le de Sécheval (53yo)

            Independent Director

            • Tenure: 11.8yrs
            • Compensation: €62.40k
          • Gilles Christian Pélisson (62yo)

            Chairman & CEO of TF1

            • Tenure: 3.9yrs
          • Anne-Marie Idrac (68yo)

            Independent Director

            • Tenure: 7.8yrs
            • Compensation: €63.52k
          • Colette Lewiner (74yo)

            Independent Director

            • Tenure: 9.8yrs
            • Compensation: €84.00k
          • Philippe Bonnave (66yo)

            Chairman & CEO of Bouygues Construction

            • Tenure: 4.8yrs
          • Rose-Marie Van Lerberghe (72yo)

            Independent Director

            • Tenure: 6.8yrs
            • Compensation: €46.40k
          • Michèle Vilain (58yo)

            Director

            • Tenure: 9.8yrs
            • Compensation: €56.00k
          • Pascal Minault (56yo)

            Chairman of Bouygues Immobilier

            • Tenure: 0.9yrs

          Company Information

          Bouygues SA's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Bouygues SA
          • Ticker: EN
          • Exchange: WBAG
          • Founded: 1952
          • Industry: Construction and Engineering
          • Sector: Capital Goods
          • Market Cap: €13.920b
          • Shares outstanding: 379.50m
          • Website: https://www.bouygues.com

          Number of Employees


          Location

          • Bouygues SA
          • 32, Avenue Hoche
          • Cedex 08
          • Paris
          • Ile-de-France
          • 75008
          • France

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          BOUY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
          ENENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
          BYGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
          0HANLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
          BYGXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
          ENPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
          ENSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
          ENWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
          BYGETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
          BOUY.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

          Biography

          Bouygues SA, together with its subsidiaries, operates in the construction, telecom, and media sectors in France and internationally. The company designs, builds, and operates structures and facilities; develops residential, office building, retail, and neighborhood projects; constructs and maintains roads and motorways, airport runways, ports, industrial logistics and commercial hubs, external works and amenities, reserved-lane public transport facilities, leisure facilities, and environmental amenities, as well as undertakes civil engineering activities; and produces and recycles construction materials. It also engages in the construction, renewal, and maintenance of rail networks; production and sale of waterproofing and claddings for buildings; manufacture of road safety and signaling equipment; and laying and maintenance of pipes and pipelines. In addition, the company produces TF1, TMC, TFX, TF1, and LCI complementary TV channels; operates TV Breizh, Histoire, Ushuaïa, and Serieclub channels; produces, broadcasts, and distributes content; produces cinemas; operates la seine musicale entertainment and concert venue; and licenses, publishes, and boards games, as well as musical and events. Further, it offers telecom services; mobile and fixed Internet services; and Bbox Miami, an Android box for TV. Bouygues SA was founded in 1952 and is based in Paris, France. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/27 22:17
          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.