BME:FCC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Fomento de Construcciones y Contratas

Executive Summary

Fomento de Construcciones y Contratas, S.A., together with its subsidiaries, engages in the environmental services, water management, and infrastructure development businesses in Europe and internationally. More Details


Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

How has Fomento de Construcciones y Contratas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCC is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FCC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

FCC

-0.6%

ES Construction

-1.6%

ES Market


1 Year Return

-18.1%

FCC

-22.8%

ES Construction

-11.5%

ES Market

Return vs Industry: FCC exceeded the Spanish Construction industry which returned -22.8% over the past year.

Return vs Market: FCC underperformed the Spanish Market which returned -11.5% over the past year.


Shareholder returns

FCCIndustryMarket
7 Day-3.4%-0.6%-1.6%
30 Day8.1%1.4%5.0%
90 Day14.2%11.8%18.2%
1 Year-15.2%-18.1%-20.3%-22.8%-9.0%-11.5%
3 Year3.0%-3.2%4.4%-4.7%-9.4%-18.1%
5 Year60.9%42.5%31.5%13.5%14.5%-2.9%

Long-Term Price Volatility Vs. Market

How volatile is Fomento de Construcciones y Contratas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fomento de Construcciones y Contratas undervalued compared to its fair value and its price relative to the market?

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCC (€9.34) is trading below our estimate of fair value (€11.7)

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


Price To Earnings Ratio

PE vs Industry: FCC is poor value based on its PE Ratio (18.3x) compared to the ES Construction industry average (12.9x).

PE vs Market: FCC is good value based on its PE Ratio (18.3x) compared to the Spanish market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: FCC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: FCC's PB Ratio (1.8x) is in line with the ES Construction industry average.


Next Steps

Future Growth

How is Fomento de Construcciones y Contratas forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCC's forecast earnings growth (13.8% per year) is above the savings rate (1.1%).

Earnings vs Market: FCC's earnings (13.8% per year) are forecast to grow slower than the Spanish market (33.9% per year).

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

Revenue vs Market: FCC's revenue (3.3% per year) is forecast to grow slower than the Spanish market (6.1% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCC's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Fomento de Construcciones y Contratas performed over the past 5 years?

42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCC has high quality earnings.

Growing Profit Margin: FCC's current net profit margins (3.3%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: FCC has become profitable over the past 5 years, growing earnings by 42.5% per year.

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

Earnings vs Industry: FCC had negative earnings growth (-32.4%) over the past year, making it difficult to compare to the Construction industry average (1.8%).


Return on Equity

High ROE: FCC's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Fomento de Construcciones y Contratas's financial position?


Financial Position Analysis

Short Term Liabilities: FCC's short term assets (€4.2B) do not cover its short term liabilities (€4.4B).

Long Term Liabilities: FCC's short term assets (€4.2B) do not cover its long term liabilities (€5.6B).


Debt to Equity History and Analysis

Debt Level: FCC's debt to equity ratio (151%) is considered high.

Reducing Debt: FCC's debt to equity ratio has reduced from 1354.7% to 151% over the past 5 years.

Debt Coverage: FCC's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: FCC's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Fomento de Construcciones y Contratas's current dividend yield, its reliability and sustainability?

4.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FCC's dividend (4.28%) is higher than the bottom 25% of dividend payers in the Spanish market (2.17%).

High Dividend: FCC's dividend (4.28%) is low compared to the top 25% of dividend payers in the Spanish market (6.85%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.3%), FCC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCC's dividends in 3 years are forecast to be covered by earnings (58.4% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Pablo Colio Abril (52 yo)

3.33yrs

Tenure

Mr. Pablo Colio Abril has been Chief Executive Officer and Managing Director of Fomento De Construcciones Y Contratas, S.A. (FCC Construction) and serves as its Member of Executive Committee. Mr. Abril ser...


Leadership Team

NamePositionTenureCompensationOwnership
Esther Alcocer Koplowitz
Chairwoman & Member of Executive Committee8yrs€62.00kno data
Alejandro Aboumrad Gonzalez
Chairman of Executive Committee & Propietary Director6yrs€328.00k0.0077%
€ 293.1k
Gerardo Kuri Kaufmann
Executive Director & Member of Executive Committee6yrs€46.00k0.0047%
€ 177.8k
Juan Rodriguez Torres
Proprietary Director & Member of Executive Committee5.5yrs€15.00k0.045%
€ 1.7m
Felipe Bernabe Garcia Perez
General Secretaryno datano datano data
Pablo Colio Abril
CEO, MD3.33yrsno data0.0067%
€ 256.6k
Miguel Angel Martinez Parra
General Manager of Administration & Financeno datano datano data
Alicia Alcocer Koplowitz
Propietary Director & Member of Executive Committee21.83yrs€63.00kno data
Jose Cerro Redondo
Head of Legal Servicesno datano datano data
Julio Pastor Bayon
Director of Communications & Corporate Social Responsibility5.75yrsno datano data
Vicente Orts Llopis
Chief Financial Officer of United Kingdom Operationsno datano datano data
Francisco Vicent Chulia
Secretary16.25yrsno datano data

5.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: FCC's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Esther Alcocer Koplowitz
Chairwoman & Member of Executive Committee8yrs€62.00kno data
Alejandro Aboumrad Gonzalez
Chairman of Executive Committee & Propietary Director6yrs€328.00k0.0077%
€ 293.1k
Gerardo Kuri Kaufmann
Executive Director & Member of Executive Committee6yrs€46.00k0.0047%
€ 177.8k
Juan Rodriguez Torres
Proprietary Director & Member of Executive Committee5.5yrs€15.00k0.045%
€ 1.7m
Pablo Colio Abril
CEO, MD3.33yrsno data0.0067%
€ 256.6k
Alicia Alcocer Koplowitz
Propietary Director & Member of Executive Committee21.83yrs€63.00kno data
Eduardo González Gómez
Director of Institutional Relations & Non-Executive Chairman of FCC Aqualia7.25yrsno datano data
Jose Luis Saenz de Miera Alonso
Chairman & CEO of Cementos Portland Valderrivasno datano datano data
Henri Proglio
Independent Director5.58yrs€36.00k0.00096%
€ 36.5k
Ignacio Bayon Marine
Chairman of Realia Businessno datano datano data
Esther Koplowitz Romero de Juseu
First Vice Chairwomanno data€25.00kno data
Miguel Jurado Fernández
Chairman of FCC Construcciónno datano datano data

6.0yrs

Average Tenure

61yo

Average Age

Experienced Board: FCC's board of directors are considered experienced (6 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 been diluted in the past year, with total shares outstanding growing by 4.2%.


Top Shareholders

Company Information

Fomento de Construcciones y Contratas, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fomento de Construcciones y Contratas, S.A.
  • Ticker: FCC
  • Exchange: BME
  • Founded: 1900
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €3.807b
  • Shares outstanding: 407.56m
  • Website: https://www.fcc.es/es/

Number of Employees


Location

  • Fomento de Construcciones y Contratas, S.A.
  • Avda. Camino de Santiago, 40
  • Madrid
  • Madrid
  • 28050
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMOC.FOTCPK (Pink Sheets LLC)YesCommon Bearer SharesUSUSDMar 1992
FCCBME (Bolsas y Mercados Espanoles)YesCommon Bearer SharesESEURMar 1992
0HAALSE (London Stock Exchange)YesCommon Bearer SharesGBEURMar 1992
FCCDB (Deutsche Boerse AG)YesCommon Bearer SharesDEEURMar 1992
FCCEBATS-CHIXE (BATS 'Chi-X Europe')YesCommon Bearer SharesGBEURMar 1992
FCC NBMV (Bolsa Mexicana de Valores)YesCommon Bearer SharesMXMXNMar 1992
FMOC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Fomento de Construcciones y Contratas, S.A., together with its subsidiaries, engages in the environmental services, water management, and infrastructure development businesses in Europe and internationally...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 01:23
End of Day Share Price2021/01/19 00:00
Earnings2020/09/30
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.