ASX:CIM

Stock Analysis Report

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Executive Summary

CIMIC Group Limited provides construction, mining, mineral processing, engineering, and operation and maintenance services to the infrastructure, resource, and property markets.


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.1%

CIM

2.6%

AU Construction

1.4%

AU Market


1 Year Return

-24.3%

CIM

-30.6%

AU Construction

-4.5%

AU Market

Return vs Industry: CIM exceeded the Australian Construction industry which returned -30.6% over the past year.

Return vs Market: CIM underperformed the Australian Market which returned -4.5% over the past year.


Shareholder returns

CIMIndustryMarket
7 Day3.1%2.6%1.4%
30 Day2.9%1.3%1.7%
90 Day2.0%-2.1%14.7%
1 Year-22.6%-24.3%-28.8%-30.6%-0.8%-4.5%
3 Year-38.6%-43.7%-36.3%-41.5%19.6%4.1%
5 Year23.0%5.4%23.1%4.1%45.4%14.4%

Price Volatility Vs. Market

How volatile is CIMIC Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

26.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIM (A$23.35) is trading below our estimate of fair value (A$31.64)

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


Price To Earnings Ratio

PE vs Industry: CIM is unprofitable, so we can't compare its PE Ratio to the AU Construction industry average.

PE vs Market: CIM is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CIM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CIM is overvalued based on its PB Ratio (9.2x) compared to the AU Construction industry average (1.8x).


Next Steps

Future Growth

How is CIMIC Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: CIM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CIM's is expected to become profitable in the next 3 years.

Revenue vs Market: CIM's revenue (5% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: CIM's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIM's Return on Equity is forecast to be very high in 3 years time (47.9%).


Next Steps

Past Performance

How has CIMIC Group performed over the past 5 years?

-20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIM is currently unprofitable.

Growing Profit Margin: CIM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CIM is unprofitable, and losses have increased over the past 5 years at a rate of 20.7% per year.

Accelerating Growth: Unable to compare CIM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CIM is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (7.3%).


Return on Equity

High ROE: CIM has a negative Return on Equity (-142.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is CIMIC Group's financial position?


Financial Position Analysis

Short Term Liabilities: CIM's short term assets (A$8.4B) exceed its short term liabilities (A$6.7B).

Long Term Liabilities: CIM's short term assets (A$8.4B) exceed its long term liabilities (A$5.8B).


Debt to Equity History and Analysis

Debt Level: CIM's debt to equity ratio (693.3%) is considered high.

Reducing Debt: CIM's debt to equity ratio has increased from 44.4% to 693.3% over the past 5 years.

Debt Coverage: CIM's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: CIM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is CIMIC Group current dividend yield, its reliability and sustainability?

5.56%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CIM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CIM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CIM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CIM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CIM is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CIM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Juan Santamaria

0.50

Tenure

Mr. Juan Santamaria has been Chief Executive Officer & Managing Director at CIMIC Group Limited since February 5, 2020. Mr. Santamaria was the Managing Director of CPB Contractors Pty Limited since August ...


Leadership Team

NamePositionTenureCompensationOwnership
Marcelino Fernández Verdes
Executive Chairman6.17yrsAU$2.12m0.00087%
A$ 64.4k
Stefan Camphausen
Chief Financial Officer3.17yrsAU$847.71kno data
Ignacio Segura Suriñach
Deputy CEO & COO2.75yrsAU$1.47mno data
Juan Santamaria
CEO, MD & Director0.50yrno datano data
George Sassine
Executive General Manager of Investment & Group Property3.58yrsno datano data
Justin Grogan
Executive General Manager Sustainability & Investor Relations1.58yrsno datano data
Brad Davey
Chief Legal & Risk Officer2.25yrsno datano data
Fiona Tyndall
General Manager Corporate Affairs & Communicationsno datano datano data
Lisa Interligi
Chief Human Resources & Corporate Services Officerno datano datano data
Roman Garrido
CIMIC Group Chief Safetyno datano datano data
Glen Mace
Managing Director of EIC Activitiesno datano datano data
Douglas Thompson
CIMIC Group Mining & Mineral Processing Executive and MD of Thiessno datano datano data

2.5yrs

Average Tenure

54yo

Average Age

Experienced Management: CIM's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marcelino Fernández Verdes
Executive Chairman6.17yrsAU$2.12m0.00087%
A$ 64.4k
Juan Santamaria
CEO, MD & Director0.50yrno datano data
Peter-Wilhelm Sassenfeld
Non-Executive Director8.75yrsAU$220.00k0.00059%
A$ 43.7k
Kathryn Spargo
Independent Non-Executive Director2.92yrsAU$250.77k0.0013%
A$ 93.2k
David Robinson
Non-Executive Director29.67yrsAU$334.95k0.00047%
A$ 34.8k
Pedro Jose López Jiménez
Non-Executive Director6.42yrsAU$231.00k0.00038%
A$ 28.1k
José Luis Del Valle Pérez
Non-Executive Director6.42yrsAU$231.00k0.00032%
A$ 23.7k
Peter McMorrow
Executive Chairman of Broad Group Holdings9.92yrsAU$373.71kno data
Russell Chenu
Independent Non-Executive Director6.17yrsAU$308.14k0.0013%
A$ 95.4k
Robert Seidler
Alternate Director6.17yrsno data0.00093%
A$ 68.8k
Riad T. Sadik
Chairman of Habtoor Leighton Groupno datano datano data
Adolfo Martínez
Alternate Director2.75yrsno data0.00079%
A$ 58.5k

6.2yrs

Average Tenure

68yo

Average Age

Experienced Board: CIM's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

CIMIC Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CIMIC Group Limited
  • Ticker: CIM
  • Exchange: ASX
  • Founded: 1899
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$7.399b
  • Shares outstanding: 316.86m
  • Website: https://www.cimic.com.au

Number of Employees


Location

  • CIMIC Group Limited
  • 177 Pacific Highway
  • Level 25
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGTH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CIMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
LTHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CIMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

CIMIC Group Limited provides construction, mining, mineral processing, engineering, and operation and maintenance services to the infrastructure, resource, and property markets. The company operates throug ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 11:14
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.