Ferrovial
Market Cap
€14.9b
Last Updated
2020/04/04 21:35 UTC
Data Sources
Company Financials +
Executive Summary
Ferrovial, S.A., together with its subsidiaries, operates as an infrastructure operator and municipal services company worldwide.
Rewards
Risk Analysis
Dividend of 3.53% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Mediocre balance sheet with questionable track record.
Similar Companies
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-8.6%
FER
-4.3%
ES Construction
-3.0%
ES Market
1 Year Return
-4.2%
FER
-30.1%
ES Construction
-28.5%
ES Market
Return vs Industry: FER exceeded the Spanish Construction industry which returned -29.2% over the past year.
Return vs Market: FER exceeded the Spanish Market which returned -28.6% over the past year.
Shareholder returns
| FER | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.6% | -4.3% | -3.0% |
| 30 Day | -27.5% | -30.1% | -24.0% |
| 90 Day | -24.9% | -34.3% | -29.7% |
| 1 Year | -1.8%-4.2% | -27.9%-30.1% | -26.0%-28.5% |
| 3 Year | 16.3%6.4% | -15.4%-20.7% | -28.2%-34.9% |
| 5 Year | 13.4%-2.2% | -21.8%-36.4% | -30.3%-41.7% |
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
2 weeks ago | Simply Wall St
How Does Ferrovial's (BME:FER) P/E Compare To Its Industry, After The Share Price Drop?1 month ago | Simply Wall St
Read This Before Judging Ferrovial, S.A.'s (BME:FER) ROE1 month ago | Simply Wall St
Should You Buy Ferrovial, S.A. (BME:FER) For Its Dividend?Valuation
Is Ferrovial undervalued compared to its fair value and its price relative to the market?
32.53x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FER (€20.36) is trading above our estimate of fair value (€9.07)
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 (32.5x) compared to the Construction industry average (5.5x).
PE vs Market: FER is poor value based on its PE Ratio (32.5x) compared to the Spanish market (14.1x).
Price to Earnings Growth Ratio
PEG Ratio: FER is poor value based on its PEG Ratio (4.9x)
Price to Book Ratio
PB vs Industry: FER is overvalued based on its PB Ratio (3.5x) compared to the ES Construction industry average (1.1x).
Next Steps
Future Growth
How is Ferrovial forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
6.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FER's forecast earnings growth (6.6% per year) is above the savings rate (0.4%).
Earnings vs Market: FER's earnings (6.6% per year) are forecast to grow slower than the Spanish market (10.9% per year).
High Growth Earnings: FER's earnings are forecast to grow, but not significantly.
Revenue vs Market: FER's revenue (1.9% per year) is forecast to grow slower than the Spanish market (4% per year).
High Growth Revenue: FER's revenue (1.9% 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 (12.4%).
Next Steps
Past Performance
How has Ferrovial performed over the past 5 years?
-20.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FER has a large one-off gain of €553.0M impacting its December 31 2019 financial results.
Growing Profit Margin: FER's current net profit margins (7.6%) are higher than last year (6.8%).
Past Earnings Growth Analysis
Earnings Trend: FER's earnings have declined by -20.4% per year over the past 5 years.
Accelerating Growth: FER's earnings growth over the past year (16.8%) exceeds its 5-year average (-20.4% per year).
Earnings vs Industry: FER earnings growth over the past year (16.8%) underperformed the Construction industry 16.8%.
Return on Equity
High ROE: FER's Return on Equity (9%) is considered low.
Next Steps
Financial Health
How is Ferrovial's financial position?
Financial Position Analysis
Short Term Liabilities: FER's short term assets (€11.8B) exceed its short term liabilities (€8.6B).
Long Term Liabilities: FER's short term assets (€11.8B) exceed its long term liabilities (€10.4B).
Debt to Equity History and Analysis
Debt Level: FER's debt to equity ratio (169.5%) is considered high.
Reducing Debt: FER's debt to equity ratio has reduced from 169.8% to 169.5% over the past 5 years.
Debt Coverage: FER's debt is not well covered by operating cash flow (13.1%).
Interest Coverage: Insufficient data to determine if FER's interest payments on its debt are well covered by EBIT.
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 1.4x debt).
Next Steps
Dividend
What is Ferrovial's current dividend yield, its reliability and sustainability?
3.53%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FER's dividend (3.53%) is higher than the bottom 25% of dividend payers in the Spanish market (3.06%).
High Dividend: FER's dividend (3.53%) is low compared to the top 25% of dividend payers in the Spanish market (8.13%).
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 (114.9%), 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 (121.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.5yrs
Average management tenure
CEO
Ignacio Madridejos Fernández (53yo)
0.58
Tenure
€1,882,000
Compensation
Mr. Ignacio Madridejos Fernández has been a Chief Executive Officer and Executive Director of Ferrovial, S.A. since September 30, 2019. He had been the President of CEMEX USA at CEMEX, S.A.B. de C.V. since ...
CEO Compensation Analysis
Compensation vs Market: Ignacio's total compensation ($USD2.05M) is below average for companies of similar size in the Spanish market ($USD4.11M).
Compensation vs Earnings: Insufficient data to compare Ignacio's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 20.25yrs | €4.42m | no data | |
| CEO & Executive Director | 0.58yr | €1.88m | 0.0020% €299.5k | |
| Chief Financial Officer | 10.5yrs | no data | no data | |
| Chief Information & Innovation Officer | 12yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Secretary | 11.25yrs | no data | no data | |
| Director of Compliance & Risk | 0.58yr | no data | no data | |
| Chief Human Resources Officer | 0.25yr | no data | no data | |
| Director of Corporate Strategy | no data | no data | no data | |
| Chief Executive Officer of Cintra | 12.08yrs | no data | no data |
10.5yrs
Average Tenure
56yo
Average Age
Experienced Management: FER's management team is seasoned and experienced (10.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 20.25yrs | €4.42m | no data | |
| CEO & Executive Director | 0.58yr | €1.88m | 0.0020% €299.5k | |
| Lead Director | no data | €152.00k | 0.0040% €599.1k | |
| External Independent Director | 11.92yrs | €160.00k | 0.0030% €448.6k | |
| External Independent Director | 10.33yrs | €161.00k | 0.024% €3.6m | |
| External Proprietary Director | 13.58yrs | €144.00k | 0.018% €2.7m | |
| External Independent Director | 3yrs | €130.00k | no data | |
| External Proprietary Director | 4.5yrs | €126.00k | 2.55% €380.5m | |
| External Independent Director | 1.75yrs | €126.00k | no data | |
| External Independent Director | 3.75yrs | €131.00k | 0.0030% €448.6k |
4.5yrs
Average Tenure
61yo
Average Age
Experienced Board: FER's board of directors are considered experienced (4.5 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
Ferrovial, S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Ferrovial, S.A.
- Ticker: FER
- Exchange: BME
- Founded: 1952
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: €14.902b
- Shares outstanding: 731.94m
- Website: https://www.ferrovial.com
Number of Employees
Location
- Ferrovial, S.A.
- Calle Príncipe de Vergara 135
- Madrid
- Madrid
- 28002
- Spain
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| UFG | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Oct 2004 |
| FER | BME (Bolsas y Mercados Espanoles) | Yes | Ordinary Shares | ES | EUR | Oct 2004 |
| 0P2N | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Oct 2004 |
| FRRV.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Oct 2004 |
| FER N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Oct 2004 |
| FERE | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Oct 2004 |
| FER | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Oct 2004 |
| UFG | ETLX (Eurotlx) | Yes | Ordinary Shares | IT | EUR | Oct 2004 |
| FRRV.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 21:35 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.