WBAG:FER

Stock Analysis Report

Executive Summary

Ferrovial, S.A., together with its subsidiaries, operates as an infrastructure operator and municipal services company worldwide.

Rewards

Earnings are forecast to grow 0.79% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 2.55% is not well covered by earnings or forecast to be in the next 3 years

Large one-off items impacting financial results

Profit margins (0.9%) are lower than last year (13.5%)



Snowflake Analysis

Limited growth with imperfect balance sheet.


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Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.8%

FER

-2.8%

AT Construction

-2.2%

AT Market


1 Year Return

48.8%

FER

17.7%

AT Construction

3.6%

AT Market

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

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


Shareholder returns

FERIndustryMarket
7 Day0.8%-2.8%-2.2%
30 Day7.4%-2.7%-2.9%
90 Day10.7%-3.2%-2.5%
1 Year52.6%48.8%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 Ferrovial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

411.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FER (€28.06) is trading above our estimate of fair value (€21.43)

Significantly Below Fair Value: FER is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FER is poor value based on its PE Ratio (397.8x) compared to the Construction industry average (9.6x).

PE vs Market: FER is poor value based on its PE Ratio (397.8x) compared to the Austrian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: FER is poor value based on its PEG Ratio (519x)


Price to Book Ratio

PB vs Industry: FER is overvalued based on its PB Ratio (5x) compared to the AT Construction industry average (1.2x).


Next Steps

Future Growth

How is Ferrovial forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FER's forecast earnings growth (0.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: FER's earnings (10.6% per year) are forecast to grow faster than the Austrian market (8.6% per year).

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

Revenue vs Market: FER's revenue (2.4% per year) is forecast to grow slower than the Austrian market (2.5% per year).

High Growth Revenue: FER's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FER's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Ferrovial performed over the past 5 years?

-22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FER has a large one-off gain of €98.0M impacting its September 30 2019 financial results.

Growing Profit Margin: FER's current net profit margins (0.9%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: FER's earnings have declined by -22.3% per year over the past 5 years.

Accelerating Growth: FER's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FER had negative earnings growth (-79.1%) over the past year, making it difficult to compare to the Construction industry average (8%).


Return on Equity

High ROE: FER's Return on Equity (0.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ferrovial's financial position?


Financial Position Analysis

Short Term Liabilities: FER's short term assets (€12.1B) exceed its short term liabilities (€9.1B).

Long Term Liabilities: FER's short term assets (€12.1B) exceed its long term liabilities (€10.8B).


Debt to Equity History and Analysis

Debt Level: FER's debt to equity ratio (180.5%) is considered high.

Reducing Debt: FER's debt to equity ratio has increased from 159% to 180.5% over the past 5 years.

Debt Coverage: FER's debt is not well covered by operating cash flow (2.2%).

Interest Coverage: FER's interest payments on its debt are not well covered by EBIT (0.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: FER's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

2.47%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.6%markettop25%4.4%industryaverage3.5%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: FER's dividend (2.55%) is higher than the bottom 25% of dividend payers in the Austrian market (1.6%).

High Dividend: FER's dividend (2.55%) is low compared to the top 25% of dividend payers in the Austrian market (4.17%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1017.9%), FER's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FER's dividends in 3 years are not forecast to be well covered by earnings (118.1% payout ratio).


Next Steps

Management

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

10.6yrs

Average management tenure


CEO

Ignacio Madridejos Fernández (53yo)

1yrs

Tenure

0

Mr. Ignacio Madridejos Fernández serves as Chief Executive Officer and Executive Director of Ferrovial, S.A. since 2019. He had been the President of CEMEX USA at CEMEX, S.A.B. de C.V. since January 1, 201 ...


Management Age and Tenure

10.6yrs

Average Tenure

56yo

Average Age

Experienced Management: FER's management team is seasoned and experienced (10.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

61yo

Average Age

Experienced Board: FER's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: FER insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Buy€809,39303 Jan 20
Rijn Capital BV
EntityCompany
Shares30,269
Max Price€26.74
Sell€809,39303 Jan 20
Rafael del Pino y Calvo-Sotelo
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares30,269
Max Price€26.74
Buy€44,68002 Jul 19
Óscar Fanjul Martín
EntityIndividual
Role
Lead Director
Lead Director
Shares2,000
Max Price€22.34
Buy€79,49328 Jun 19
Óscar Fanjul Martín
EntityIndividual
Role
Lead Director
Lead Director
Shares3,533
Max Price€22.50
Buy€24,86320 May 19
Óscar Fanjul Martín
EntityIndividual
Role
Lead Director
Lead Director
Shares1,217
Max Price€20.43

Ownership Breakdown

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


Management Team

  • Ernesto López Mozo (55yo)

    Chief Financial Officer

    • Tenure: 10.3yrs
  • Rafael del Pino y Calvo-Sotelo (61yo)

    Chairman of the Board

    • Tenure: 20yrs
    • Compensation: €4.23m
  • Ignacio Madridejos Fernández (53yo)

    CEO & Executive Director

    • Tenure: 1yrs
  • Pedro Montoya

    Director of Compliance & Risk

    • Tenure: 0.3yrs
  • Alejandro de la Joya Ruiz de Velasco (52yo)

    Chief Executive Officer of Cintra

    • Tenure: 11.8yrs
  • Federico Flórez (59yo)

    Chief Information & Innovation Officer

    • Tenure: 11.8yrs
  • Santiago Ortiz Vaamonde (57yo)

    General Counsel & Secretary

    • Tenure: 11yrs
  • María Teresa Pulido

    Director of Corporate Strategy

    • Ricardo Jiménez

      Head of Investor Relations

      • Carlos Cerezo

        Chief Human Resources Officer


        Board Members

        • Óscar Fanjul Martín (70yo)

          Lead Director

          • Compensation: €143.00k
        • Santiago Javier Fernández Valbuena (61yo)

          External Independent Director

          • Tenure: 11.7yrs
          • Compensation: €163.00k
        • José Fernando Sánchez-Junco Mans (71yo)

          External Independent Director

          • Tenure: 10.1yrs
          • Compensation: €157.00k
        • Rafael del Pino y Calvo-Sotelo (61yo)

          Chairman of the Board

          • Tenure: 20yrs
          • Compensation: €4.23m
        • María del Pino y Calvo-Sotelo (62yo)

          External Proprietary Director

          • Tenure: 13.3yrs
          • Compensation: €138.00k
        • Ignacio Madridejos Fernández (53yo)

          CEO & Executive Director

          • Tenure: 1yrs
        • Hanne Birgitte Breinbjerg Sørensen (54yo)

          External Independent Director

          • Tenure: 2.8yrs
          • Compensation: €138.00k
        • Joaquín Del Pino y Calvo-Sotelo (58yo)

          External Proprietary Director

          • Tenure: 4.3yrs
          • Compensation: €131.00k
        • Bruno Di Leo (61yo)

          External Independent Director

          • Tenure: 1.5yrs
          • Compensation: €37.00k
        • Philip Bowman (66yo)

          External Independent Director

          • Tenure: 3.5yrs
          • Compensation: €138.00k

        Company Information

        Ferrovial, S.A.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Ferrovial, S.A.
        • Ticker: FER
        • Exchange: WBAG
        • Founded: 1952
        • Industry: Construction and Engineering
        • Sector: Capital Goods
        • Market Cap: €21.567b
        • Shares outstanding: 740.64m
        • Website: https://www.ferrovial.com

        Number of Employees


        Location

        • Ferrovial, S.A.
        • Calle Príncipe de Vergara 135
        • Madrid
        • Madrid
        • 28002
        • Spain

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        UFGDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2004
        FERBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEUROct 2004
        0P2NLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2004
        FRRV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2004
        FER NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 2004
        FEREBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2004
        FERWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 2004
        UFGETLX (Eurotlx)YesOrdinary SharesITEUROct 2004
        FRRV.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

        Biography

        Ferrovial, S.A., together with its subsidiaries, operates as an infrastructure operator and municipal services company worldwide. The company engages in the design and construction of various public and private work projects; and development, finance, and operation of toll road concessions. Its construction activities include tunnels, roads, and railways, as well as the repair and maintenance of roads; industrial, residential, and non-residential buildings; and dams, gas and oil pipelines, water treatment plants, canals, docks and port infrastructures, and hydroelectric plants. The company also develops, finances, and operates airports; and engages in the sale of real estate properties, including flats, retail units, and garages. Ferrovial, S.A. was founded in 1952 and is based 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 22:26
        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.