BME:TRE

Stock Analysis Report

Técnicas Reunidas

Executive Summary

Técnicas Reunidas, S.A., an engineering and construction company, engages in the design and management of industrial plant projects worldwide.

Rewards

Earnings are forecast to grow 31.37% per year

Earnings grew by 245.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings



Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Técnicas Reunidas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

TRE

4.4%

ES Energy Services

1.7%

ES Market


1 Year Return

-2.3%

TRE

-15.2%

ES Energy Services

9.2%

ES Market

Return vs Industry: TRE exceeded the Spanish Energy Services industry which returned -15% over the past year.

Return vs Market: TRE underperformed the Spanish Market which returned 9% over the past year.


Shareholder returns

TREIndustryMarket
7 Day4.5%4.4%1.7%
30 Day-6.9%-7.2%2.9%
90 Day-6.0%-1.8%7.4%
1 Year-2.3%-2.3%-13.2%-15.2%13.0%9.2%
3 Year-37.4%-40.1%-30.6%-38.2%17.5%6.3%
5 Year-33.6%-40.6%-54.9%-74.3%12.4%-6.3%

Price Volatility Vs. Market

How volatile is Técnicas Reunidas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

37.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRE (€22.1) is trading above our estimate of fair value (€18.93)

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


Price To Earnings Ratio

PE vs Industry: TRE is poor value based on its PE Ratio (37.5x) compared to the Energy Services industry average (14.6x).

PE vs Market: TRE is poor value based on its PE Ratio (37.5x) compared to the Spanish market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: TRE is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TRE is overvalued based on its PB Ratio (3.4x) compared to the XE Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Técnicas Reunidas forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

31.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRE's forecast earnings growth (31.4% per year) is above the savings rate (0.4%).

Earnings vs Market: TRE's earnings (31.4% per year) are forecast to grow faster than the Spanish market (9.7% per year).

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

Revenue vs Market: TRE's revenue (3.7% per year) is forecast to grow slower than the Spanish market (4.6% per year).

High Growth Revenue: TRE's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRE's Return on Equity is forecast to be high in 3 years time (23.6%)


Next Steps

Past Performance

How has Técnicas Reunidas performed over the past 5 years?

-36.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRE has a high level of non-cash earnings.

Growing Profit Margin: TRE's current net profit margins (0.7%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: TRE's earnings have declined by -36.8% per year over the past 5 years.

Accelerating Growth: TRE's earnings growth over the past year (245.2%) exceeds its 5-year average (-36.8% per year).

Earnings vs Industry: TRE earnings growth over the past year (245.2%) exceeded the Energy Services industry 50.3%.


Return on Equity

High ROE: TRE's Return on Equity (9.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Técnicas Reunidas's financial position?


Financial Position Analysis

Short Term Liabilities: TRE's short term assets (€3.8B) exceed its short term liabilities (€3.7B).

Long Term Liabilities: TRE's short term assets (€3.8B) exceed its long term liabilities (€342.2M).


Debt to Equity History and Analysis

Debt Level: TRE's debt to equity ratio (148.4%) is considered high.

Reducing Debt: TRE's debt to equity ratio has increased from 6% to 148.4% over the past 5 years.

Debt Coverage: TRE's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: TRE's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet

Inventory Level: TRE has a low level of unsold assets or inventory.

Debt Coverage by Assets: TRE's debt is covered by short term assets (assets are 7.1x debt).


Next Steps

Dividend

What is Técnicas Reunidas's current dividend yield, its reliability and sustainability?

5.02%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%5.3%industryaverage4.7%forecastin3Years5.0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRE'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?

13.2yrs

Average board tenure


CEO

Técnicas Reunidas has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Pedro Luis Uriarte Santamarina
Director8.7yrs€113.00k0.010% 123.6k
William Richardson
Director8.7yrs€330.00kno data
José Lladó Fernández-Urrutia
Chairman of the Board0yrs€668.00k0.11% 1.4m
José Manuel Lladó Arburúa
Director13.8yrs€93.00kno data
Fernando de Asúa Álvarez
Third Vice Chairman of the Board0yrs€133.00k0.031% 370.6k
Francisco Javier Gómez-Navarro Navarrete
Director13.8yrs€93.00kno data
Juan Miguel Antoñanzas Pérez-Egea
Second Vice Chairman of the Board0yrs€98.00kno data
Javier Alarcó Canosa
Director12.7yrs€98.00kno data
Juan Lladó Arburúa
First Vice Chairman of the Board0yrs€1.20mno data
Alvaro García-Agulló Lladó
Director13.8yrs€98.00kno data

13.2yrs

Average Tenure

78.5yo

Average Age

Experienced Board: TRE's board of directors are seasoned and experienced ( 13.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Técnicas Reunidas, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Técnicas Reunidas, S.A.
  • Ticker: TRE
  • Exchange: BME
  • Founded: 1960
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: €1.187b
  • Shares outstanding: 53.71m
  • Website: https://www.tecnicasreunidas.es

Number of Employees


Location

  • Técnicas Reunidas, S.A.
  • Calle Arapiles 13-14
  • Madrid
  • Madrid
  • 28015
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TREBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJun 2006
T5RDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2006
0MKTLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2006
TNIS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2006
TREEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2006
TREWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 2006
TRE NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 2006
TNIS.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Técnicas Reunidas, S.A., an engineering and construction company, engages in the design and management of industrial plant projects worldwide. It operates through Oil and Gas, Power, and Infrastructure and Industry segments. The company designs and constructs basic refining units, conversions, octane enhancement units, and other refining and treatment units in the refining sector; processing and chemical units and plants in the petrochemicals sectors; oil and gas fields development, and oil and gas treatment plants; and pipeline transport, storage parks, and compression stations, as well as natural gas liquefaction, regasification, and storage plants. It also develops power generation projects, including combined cycle, open cycle, reciprocating engine based energy, coal and other solid fuel, cogeneration, and biomass and waste to energy recovery plants; and water treatment plants, such as drinking water units, and urban and industrial waste water and desalination plants. In addition, the company offers consulting, engineering, procurement, and construction services for a range of electricity generating plants comprising conventional thermal plants, combined cycle power plants, gasification integrated with combined cycle, nuclear plants, co-generators, solar plants, fuel cells, solid waste, and biomass technology. Further, it supplies turnkey plants; performs plant operation and maintenance services; and undertakes projects in various arenas that include airports, industrial facilities, and desalination and water treatment plants, as well as initiatives for public authorities and other bodies, such as management of car parks, public spaces, and municipal sports centers. The company was formerly known as Lummus Española, S.A. and changed its name to Técnicas Reunidas, S.A. in 1972. Técnicas Reunidas, S.A. was founded in 1960 and is headquartered in Madrid, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:01
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
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.