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ACS Actividades de Construcción y Servicios

Market Cap

€7.9b

Last Updated

2021/05/13 00:57 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


Similar Companies

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 is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ACS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

ACS

-0.5%

ES Construction

0.4%

ES Market


1 Year Return

24.0%

ACS

15.8%

ES Construction

32.3%

ES Market

Return vs Industry: ACS exceeded the Spanish Construction industry which returned 10.9% over the past year.

Return vs Market: ACS underperformed the Spanish Market which returned 31.3% over the past year.


Shareholder returns

ACSIndustryMarket
7 Day-2.3%-0.5%0.4%
30 Day0.4%6.1%4.8%
90 Day8.0%14.3%9.2%
1 Year32.7%24.0%19.2%15.8%37.5%32.3%
3 Year-13.7%-25.1%14.5%4.2%1.3%-7.9%
5 Year21.7%-0.9%38.1%19.0%27.7%8.4%

Long-Term 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

Valuation

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

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACS (€27.66) is trading below our estimate of fair value (€33.11)

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


Price To Earnings Ratio

PE vs Industry: ACS's PE Ratio (14.2x) is in line with the Spanish Construction industry average.

PE vs Market: ACS is good value based on its PE Ratio (14.2x) compared to the Spanish market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: ACS is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ACS's PB Ratio (2.2x) is in line with the ES Construction industry average.


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?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACS's forecast earnings growth (10.3% per year) is above the savings rate (1%).

Earnings vs Market: ACS's earnings (10.3% per year) are forecast to grow slower than the Spanish market (22.7% per year).

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

Revenue vs Market: ACS's revenue (0.8% per year) is forecast to grow slower than the Spanish market (7.6% per year).

High Growth Revenue: ACS's revenue (0.8% 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 (18.7%).


Past Performance

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

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACS has a large one-off gain of €1.1B impacting its December 31 2020 financial results.

Growing Profit Margin: ACS's current net profit margins (1.6%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: ACS's earnings have grown by 10.2% per year over the past 5 years.

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

Earnings vs Industry: ACS had negative earnings growth (-52.2%) over the past year, making it difficult to compare to the Construction industry average (0.7%).


Return on Equity

High ROE: Whilst ACS's Return on Equity (20.96%) is high, this metric is skewed due to their high level of debt.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: ACS's short term assets (€24.3B) exceed its short term liabilities (€22.5B).

Long Term Liabilities: ACS's short term assets (€24.3B) exceed its long term liabilities (€10.6B).


Debt to Equity History and Analysis

Debt Level: ACS's debt to equity ratio (262.7%) is considered high.

Reducing Debt: ACS's debt to equity ratio has increased from 201.7% to 262.7% over the past 5 years.

Debt Coverage: ACS's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: ACS's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Dividend

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

2.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACS's dividend (2.21%) is higher than the bottom 25% of dividend payers in the Spanish market (1.6%).

High Dividend: ACS's dividend (2.21%) is low compared to the top 25% of dividend payers in the Spanish market (5.07%).


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 reasonably low payout ratio (31.3%), ACS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACS's dividends in 3 years are forecast to be covered by earnings (69.9% payout ratio).


Next Steps

Management

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

24.3yrs

Average management tenure


CEO

Marcelino Fernández Verdes (65 yo)

4yrs

Tenure

Mr. Marcelino Fernández Verdes, Civ Eng, served as Executive Chairman of CIMIC Group Limited from June 11, 2014 to November 6, 2020 and served as its Executive Director from October 10, 2012 to November 6,...


Leadership Team

Experienced Management: ACS's management team is seasoned and experienced (24.3 years average tenure).


Board Members

Experienced Board: ACS's board of directors are considered experienced (6.1 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.


Ownership Breakdown

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


Top Shareholders

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: BME
  • Founded: 1997
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €7.885b
  • Shares outstanding: 285.06m
  • Website: https://www.grupoacs.com

Number of Employees


Location

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

Listings


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 undertakes co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/13 00:57
End of Day Share Price2021/05/12 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.