BME:ACS

Stock Analysis Report

ACS Actividades de Construcción y Servicios

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.


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


Market Performance


7 Day Return

-1.2%

ACS

0.2%

ES Construction

0.5%

ES Market


1 Year Return

10.1%

ACS

18.7%

ES Construction

4.6%

ES Market

Return vs Industry: ACS underperformed the Spanish Construction industry which returned 18.7% over the past year.

Return vs Market: ACS exceeded the Spanish Market which returned 4.6% over the past year.


Shareholder returns

ACSIndustryMarket
7 Day-1.2%0.2%0.5%
30 Day-0.8%-1.3%1.6%
90 Day-2.9%1.4%0.4%
1 Year14.8%10.1%22.7%18.7%8.1%4.6%
3 Year46.8%32.4%36.9%28.4%13.6%3.1%
5 Year45.6%22.5%31.3%0.3%9.0%-11.5%

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?

24.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ACS (€35.74) is trading below our estimate of fair value (€47.52)

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


Price To Earnings Ratio

PE vs Industry: ACS is good value based on its PE Ratio (11.1x) compared to the Construction industry average (11.5x).

PE vs Market: ACS is good value based on its PE Ratio (11.1x) compared to the Spanish market (16.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ACS is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: ACS is good value based on its PB Ratio (2.7x) compared to the ES Construction industry average (2.7x).


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 14 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACS's forecast earnings growth (2.8% per year) is above the savings rate (1.5%).

Earnings vs Market: ACS's earnings (2.8% per year) are forecast to grow slower than the Spanish market (7.6% per year).

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

Revenue vs Market: ACS's revenue (3.3% per year) is forecast to grow slower than the Spanish market (3.7% per year).

High Growth Revenue: ACS's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ACS's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

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

11.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ACS's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: ACS's earnings growth over the past year (19.1%) exceeds its 5-year average (11% per year).

Earnings vs Industry: ACS earnings growth over the past year (19.1%) exceeded the Construction industry 9.3%.


Return on Equity

High ROE: Whilst ACS's Return on Equity (25.02%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ACS's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: ACS has significantly improved its Return on Capital Employed over the past 3 years.


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 (€23.0B) exceeds its short term liabilities (€22.8B)

Long Term Liabilities: ACS's short term assets (23.0B) exceeds its long term liabilities (8.7B)


Debt to Equity History and Analysis

Debt Level: ACS's debt to equity ratio (147.9%) is considered high

Reducing Debt: ACS's debt to equity ratio has reduced from 243.9% to 147.9% over the past 5 years.

Debt Coverage: ACS's debt is well covered by operating cash flow (28.5%).

Interest Coverage: ACS's interest payments on its debt are well covered by EBIT (12.6x 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 2.769910x debt).


Next Steps

Dividend

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

5.29%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.3%markettop25%5.7%industryaverage3.9%forecastin3Years5.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ACS's dividend (5.29%) is higher than the bottom 25% of dividend payers in the Spanish market (2.31%).

High Dividend: ACS's dividend (5.29%) is low compared to the top 25% of dividend payers in the Spanish market (5.65%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), 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 covered by earnings (62.6% 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?

10.2yrs

Average board tenure


CEO

Marcelino Fernandez Verdes (64yo)

2.4yrs

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

10.2yrs

Average Tenure

71yo

Average Age

Experienced Board: ACS's board of directors are seasoned and experienced ( 10.2 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
Buy€1,156,67504 Dec 18
José María Loizaga Viguri
EntityIndividual
Role
Vice Chairman
Vice-Chairman
Shares34,000
Max Price€34.07

Ownership Breakdown


Management Team

  • Florentino Pérez Rodríguez (72yo)

    Executive Chairman

    • Tenure: 26.8yrs
    • Compensation: €4.58m
  • Peter Davoren (64yo)

    Chairman & Chief Executive Officer of Turner Construction

    • Tenure: 0yrs
  • Ángel Manuel García Altozano (70yo)

    Corporate General Manager

    • Tenure: 0yrs
  • Marcelino Fernandez Verdes (64yo)

    CEO & Executive Director

    • Tenure: 2.4yrs
  • Agustín Batuecas Torrego (70yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: €80.00k
  • José Luis Del Valle Pérez (69yo)

    General Secretary & Executive Director

    • Tenure: 30.3yrs
    • Compensation: €2.76m
  • Eugenio Llorente Gómez (72yo)

    Chairman & Chief Executive Officer of Industrial Services

    • Tenure: 0yrs
  • Antonio García Ferrer (74yo)

    Vice-Chairman

    • Tenure: 15.8yrs
    • Compensation: €1.74m
  • Cristóbal Valderas Alvarado

    Chief Executive Officer of Clece

    • Tenure: 0yrs
  • John DiCiurcio (64yo)

    Chairman & Chief Executive Officer of Flatiron

    • Tenure: 3.4yrs

Board Members

  • José María Loizaga Viguri (83yo)

    Vice-Chairman

    • Tenure: 0yrs
    • Compensation: €400.00k
  • Florentino Pérez Rodríguez (72yo)

    Executive Chairman

    • Tenure: 26.8yrs
    • Compensation: €4.58m
  • Peter Davoren (64yo)

    Chairman & Chief Executive Officer of Turner Construction

    • Tenure: 0yrs
  • Marcelino Fernandez Verdes (64yo)

    CEO & Executive Director

    • Tenure: 2.4yrs
  • Agustín Batuecas Torrego (70yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: €80.00k
  • José Luis Del Valle Pérez (69yo)

    General Secretary & Executive Director

    • Tenure: 30.3yrs
    • Compensation: €2.76m
  • Eugenio Llorente Gómez (72yo)

    Chairman & Chief Executive Officer of Industrial Services

    • Tenure: 0yrs
  • Antonio García Ferrer (74yo)

    Vice-Chairman

    • Tenure: 15.8yrs
    • Compensation: €1.74m
  • John DiCiurcio (64yo)

    Chairman & Chief Executive Officer of Flatiron

    • Tenure: 3.4yrs
  • Antonio Botella García (72yo)

    Independent Director

    • Tenure: 4.5yrs
    • 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: BME
  • Founded:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €10.878b
  • 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
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 thro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:45
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.