BME:FER

Stock Analysis Report

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Market Cap

€18.7b

Last Updated

2021/06/14 21:58 UTC

Data Sources

Company Financials +

Executive Summary

Ferrovial, S.A., together with its subsidiaries, operates as an infrastructure and mobility operator in the United States, Poland, Spain, the United Kingdom, Canada, and internationally. More Details


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


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

Volatility Over Time: FER's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.3%

FER

2.2%

ES Construction

1.3%

ES Market


1 Year Return

2.1%

FER

7.7%

ES Construction

23.7%

ES Market

Return vs Industry: FER underperformed the Spanish Construction industry which returned 7.7% over the past year.

Return vs Market: FER underperformed the Spanish Market which returned 23.7% over the past year.


Shareholder returns

FERIndustryMarket
7 Day3.3%2.2%1.3%
30 Day2.8%0.9%1.5%
90 Day12.8%5.6%6.3%
1 Year3.6%2.1%10.5%7.7%29.1%23.7%
3 Year49.1%39.1%14.2%3.9%8.3%-1.7%
5 Year55.5%36.1%38.5%19.4%33.0%12.6%

Long-Term 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

Valuation

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

5.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FER (€25.34) is trading above our estimate of fair value (€17.93)

Significantly Below Fair Value: FER is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FER is overvalued based on its PB Ratio (5.8x) compared to the ES Construction industry average (2x).


Future Growth

How is Ferrovial forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

63.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FER is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

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

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

Revenue vs Market: FER's revenue (2.2% per year) is forecast to grow slower than the Spanish market (7.2% per year).

High Growth Revenue: FER's revenue (2.2% 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 (12.8%).


Past Performance

How has Ferrovial performed over the past 5 years?

-38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FER is currently unprofitable.

Growing Profit Margin: FER is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FER is unprofitable, and losses have increased over the past 5 years at a rate of 38% per year.

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

Earnings vs Industry: FER is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (2.3%).


Return on Equity

High ROE: FER has a negative Return on Equity (-9.64%), as it is currently unprofitable.


Financial Health

How is Ferrovial's financial position?


Financial Position Analysis

Short Term Liabilities: FER's short term assets (€12.3B) exceed its short term liabilities (€8.6B).

Long Term Liabilities: FER's short term assets (€12.3B) exceed its long term liabilities (€10.9B).


Debt to Equity History and Analysis

Debt Level: FER's debt to equity ratio (251%) is considered high.

Reducing Debt: FER's debt to equity ratio has increased from 127.8% to 251% over the past 5 years.

Debt Coverage: FER's debt is not well covered by operating cash flow (10.6%).

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


Balance Sheet


Dividend

What is Ferrovial current dividend yield, its reliability and sustainability?

1.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FER's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the Spanish market (1.57%).

High Dividend: FER's dividend (1.55%) is low compared to the top 25% of dividend payers in the Spanish market (4.97%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: FER is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: FER's dividends in 3 years are not forecast to be well covered by earnings (118.8% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Ignacio Fernandez (54 yo)

1.75yrs

Tenure

€1,888,000

Compensation

Mr. Ignacio Madridejos Fernández has been the 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. sin...


CEO Compensation Analysis

Compensation vs Market: Ignacio's total compensation ($USD2.29M) is about average for companies of similar size in the Spanish market ($USD2.97M).

Compensation vs Earnings: Ignacio's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: FER's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: FER's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

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: €18.724b
  • Shares outstanding: 737.44m
  • Website: https://www.ferrovial.com

Number of Employees


Location

  • Ferrovial, S.A.
  • Calle Príncipe de Vergara, 135
  • Madrid
  • Madrid
  • 28002
  • Spain

Listings


Biography

Ferrovial, S.A., together with its subsidiaries, operates as an infrastructure and mobility operator in the United States, Poland, Spain, the United Kingdom, Canada, and internationally. The company engage...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 21:58
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
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.