BME:FER

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Ferrovial, S.A., together with its subsidiaries, operates as an infrastructure and mobility operator worldwide. More Details


Snowflake Analysis

Moderate growth potential with acceptable 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

-10.1%

FER

-7.7%

ES Construction

-5.7%

ES Market


1 Year Return

-31.2%

FER

-33.3%

ES Construction

-26.6%

ES Market

Return vs Industry: FER exceeded the Spanish Construction industry which returned -33.3% over the past year.

Return vs Market: FER underperformed the Spanish Market which returned -26.6% over the past year.


Shareholder returns

FERIndustryMarket
7 Day-10.1%-7.7%-5.7%
30 Day-10.5%-4.9%-4.6%
90 Day-10.4%-4.7%-5.1%
1 Year-29.6%-31.2%-30.9%-33.3%-24.5%-26.6%
3 Year7.6%0.4%-12.6%-20.2%-27.0%-33.5%
5 Year-5.3%-17.0%-10.8%-23.0%-22.3%-34.2%

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?

104.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FER (€18.58) is trading above our estimate of fair value (€8.03)

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 (105x) compared to the ES Construction industry average (10.6x).

PE vs Market: FER is poor value based on its PE Ratio (105x) compared to the Spanish market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FER is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: FER is overvalued based on its PB Ratio (4.1x) compared to the ES Construction industry average (1.5x).


Next Steps

Future Growth

How is Ferrovial forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

67.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FER's forecast earnings growth (67.2% per year) is above the savings rate (1.3%).

Earnings vs Market: FER's earnings (67.2% per year) are forecast to grow faster than the Spanish market (31.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FER's revenue (6.1% per year) is forecast to grow slower than the Spanish market (6.6% per year).

High Growth Revenue: FER's revenue (6.1% 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 (13.6%).


Next Steps

Past Performance

How has Ferrovial performed over the past 5 years?

-23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FER has a large one-off gain of €541.0M impacting its September 30 2020 financial results.

Growing Profit Margin: FER's current net profit margins (2%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: FER's earnings have declined by 23.2% per year over the past 5 years.

Accelerating Growth: FER's earnings growth over the past year (130.4%) exceeds its 5-year average (-23.2% per year).

Earnings vs Industry: FER earnings growth over the past year (130.4%) exceeded the Construction industry 33.3%.


Return on Equity

High ROE: FER's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Ferrovial's financial position?


Financial Position Analysis

Short Term Liabilities: FER's short term assets (€13.1B) exceed its short term liabilities (€8.5B).

Long Term Liabilities: FER's short term assets (€13.1B) exceed its long term liabilities (€11.7B).


Debt to Equity History and Analysis

Debt Level: FER's debt to equity ratio (255.2%) is considered high.

Reducing Debt: FER's debt to equity ratio has increased from 160.5% to 255.2% over the past 5 years.

Debt Coverage: FER's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: FER's interest payments on its debt are not well covered by EBIT (0.3x coverage).


Balance Sheet


Next Steps

Dividend

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

3.79%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FER's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FER's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FER's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FER's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FER is not paying a notable dividend for the Spanish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FER's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Ignacio Madridejos Fernández (54 yo)

1.08yrs

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 ($USD2.19M) is below average for companies of similar size in the Spanish market ($USD3.44M).

Compensation vs Earnings: Insufficient data to compare Ignacio's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Rafael del Pino y Calvo-Sotelo
Chairman of the Board20.75yrs€4.42mno data
Ignacio Madridejos Fernández
CEO & Executive Director1.08yrs€1.88m0.0020%
€ 272.9k
Ernesto López Mozo
Chief Financial Officer11yrsno datano data
Dimitris Bountolos
Chief Information Officer & Innovation Officer0.25yrno datano data
Ricardo Jiménez
Head of Investor Relationsno datano datano data
Santiago Ortiz Vaamonde
General Counsel & Secretary11.75yrsno datano data
Pedro Montoya
Director of Compliance & Risk1.08yrsno datano data
Carlos Cerezo
Chief Human Resources Officer0.75yrno datano data
María Teresa Pulido
Director of Corporate Strategyno datano datano data
Alejandro de la Joya Ruiz de Velasco
Chief Executive Officer of Cintra12.58yrsno datano data
Jorge Villén Gil
Chief Executive Officer of Ferrovial Aeropuertos7.83yrsno datano data
Fidel Lopez Soria
Chief Executive Officer of Ferrovial Services2.42yrsno datano data

2.4yrs

Average Tenure

56yo

Average Age

Experienced Management: FER's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rafael del Pino y Calvo-Sotelo
Chairman of the Board20.75yrs€4.42mno data
Ignacio Madridejos Fernández
CEO & Executive Director1.08yrs€1.88m0.0020%
€ 272.9k
Óscar Fanjul Martín
Independent Vice Chairman0.75yr€152.00k0.0040%
€ 545.8k
Juan Manuel Hoyos Martínez de Irujo
Independent Lead Director0.75yr€30.00kno data
Santiago Javier Fernández Valbuena
External Independent Director12.42yrs€160.00k0.0030%
€ 409.3k
José Fernando Sánchez-Junco Mans
External Independent Director10.83yrs€161.00k0.024%
€ 3.3m
María del Pino y Calvo-Sotelo
External Proprietary Director14.08yrs€144.00k0.0031%
€ 423.0k
Hanne Birgitte Breinbjerg Sorensen
External Independent Director3.5yrs€130.00kno data
Joaquín Del Pino y Calvo-Sotelo
External Proprietary Director5yrs€126.00k2.54%
€ 347.2m
Bruno Di Leo
External Independent Director2.25yrs€126.00kno data
Philip Bowman
External Independent Director4.25yrs€131.00k0.0030%
€ 409.3k
Gonzalo Urquijo de Araoz
External Independent Director0.83yr€2.00kno data

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: FER's board of directors are considered experienced (3.9 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: €13.644b
  • Shares outstanding: 734.54m
  • Website: https://www.ferrovial.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UFGDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2004
FERBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEUROct 2004
0P2NLSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2004
FRRV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2004
FER NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 2004
FEREBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2004
FERWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 2004
UFGETLX (Eurotlx)YesOrdinary SharesITEUROct 2004
FRRV.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Ferrovial, S.A., together with its subsidiaries, operates as an infrastructure and mobility operator worldwide. The company engages in the design and construction of various public and private work project ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 21:00
End of Day Share Price2020/10/30 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.