ENXTPA:DG

Stock Analysis Report

Executive Summary

VINCI SA engages in the concessions and contracting businesses worldwide.

Rewards

Trading at 27.7% below its fair value

Earnings are forecast to grow 6.92% per year

Earnings have grown 7.2% per year over the past 5 years

Pays a high and reliable dividend of 2.7%

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

DG

2.0%

FR Construction

1.2%

FR Market


1 Year Return

36.9%

DG

32.5%

FR Construction

23.7%

FR Market

Return vs Industry: DG exceeded the French Construction industry which returned 32.9% over the past year.

Return vs Market: DG exceeded the French Market which returned 24.9% over the past year.


Shareholder returns

DGIndustryMarket
7 Day1.8%2.0%1.2%
30 Day2.8%2.3%1.9%
90 Day5.7%4.5%8.3%
1 Year41.0%36.9%37.0%32.5%28.1%23.7%
3 Year67.5%53.5%52.5%38.7%45.4%31.6%
5 Year148.0%113.9%108.7%75.1%63.0%39.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DG (€100.4) is trading below our estimate of fair value (€138.81)

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


Price To Earnings Ratio

PE vs Industry: DG is poor value based on its PE Ratio (18.3x) compared to the Construction industry average (15.7x).

PE vs Market: DG is poor value based on its PE Ratio (18.3x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: DG is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: DG is overvalued based on its PB Ratio (3x) compared to the FR Construction industry average (1.6x).


Next Steps

Future Growth

How is VINCI forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DG's forecast earnings growth (6.9% per year) is above the savings rate (-0.1%).

Earnings vs Market: DG's earnings (6.9% per year) are forecast to grow slower than the French market (11.7% per year).

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

Revenue vs Market: DG's revenue (3.3% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: DG'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: DG's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has VINCI performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DG has high quality earnings.

Growing Profit Margin: DG's current net profit margins (6.6%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: DG's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: DG's earnings growth over the past year (0.8%) is below its 5-year average (7.2% per year).

Earnings vs Industry: DG earnings growth over the past year (0.8%) underperformed the Construction industry 2.1%.


Return on Equity

High ROE: DG's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VINCI's financial position?


Financial Position Analysis

Short Term Liabilities: DG's short term assets (€27.9B) do not cover its short term liabilities (€31.9B).

Long Term Liabilities: DG's short term assets (€27.9B) do not cover its long term liabilities (€34.0B).


Debt to Equity History and Analysis

Debt Level: DG's debt to equity ratio (151.8%) is considered high.

Reducing Debt: DG's debt to equity ratio has increased from 124% to 151.8% over the past 5 years.

Debt Coverage: DG's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: DG's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: DG's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

2.65%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%4.4%industryaverage3.0%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: DG's dividend (2.7%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: DG's dividend (2.7%) is low compared to the top 25% of dividend payers in the French market (4.43%).


Stability and Growth of Payments

Stable Dividend: DG's dividends per share have been stable in the past 10 years.

Growing Dividend: DG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.4%), DG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DG's dividends in 3 years are forecast to be covered by earnings (53.2% payout ratio).


Next Steps

Management

What is the CEO of VINCI's salary, the management and board of directors tenure and is there insider trading?

16.5yrs

Average management tenure


CEO

Xavier M. Huillard (65yo)

14yrs

Tenure

€4,587,922

Compensation

Mr. Xavier M. P. Huillard has been the Chairman of VINCI SA since May 6, 2010 and its Chief Executive Officer since January 2006. Mr. Huillard serves as Chairman of VINCI Concessions SAS; Chairman of the S ...


CEO Compensation Analysis

Compensation vs Market: Xavier M.'s total compensation ($USD5.10M) is above average for companies of similar size in the French market ($USD3.59M).

Compensation vs Earnings: Xavier M.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

16.5yrs

Average Tenure

58yo

Average Age

Experienced Management: DG's management team is seasoned and experienced (14 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

56yo

Average Age

Experienced Board: DG's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

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.


Management Team

  • Christian Labeyrie (63yo)

    CFO & Executive VP

    • Tenure: 21yrs
  • Xavier M. Huillard (65yo)

    Chairman & CEO

    • Tenure: 14yrs
    • Compensation: €4.59m
  • Pierre Coppey (56yo)

    Executive Vice President

    • Tenure: 19yrs
    • Compensation: €1.18m
  • Pierre Duprat (56yo)

    Vice-President of Corporate Communications

    • Richard M. R. Francioli (60yo)

      Executive Vice-President of Contracting

      • Tenure: 10yrs
    • Patrick Richard (62yo)

      General Counsel & Secretary

      • Tenure: 19yrs
    • Gregoire Thibault (39yo)

      Group Director of Investor Relations & Financial Communications

      • Tenure: 1.5yrs
    • Hervé Adam

      Executive VP of Vinci Energies - France

      • Patrick Sulliot

        Chief Executive Officer of Eurovia Americas & UK

        • Jocelyne Vassoille (54yo)

          Vice-President of Human Resources


          Board Members

          • Yves-Thibault de Silguy (71yo)

            Vice-Chairman

            • Tenure: 9.7yrs
            • Compensation: €233.00k
          • Xavier M. Huillard (65yo)

            Chairman & CEO

            • Tenure: 14yrs
            • Compensation: €4.59m
          • Jérôme Stubler (56yo)

            Chairman of VINCI Construction

            • Tenure: 5.1yrs
          • Pierre Anjolras (53yo)

            Chairman of Eurovia

            • Tenure: 5.8yrs
          • Olivier de la Roussière

            Chairman of VINCI Immobilier

            • Arnaud Grison

              Chairman & CEO of VINCI Energies

              • Tenure: 0.8yrs
            • Benoît Lecinq

              Chairman of Entrepose

              • Hugues Fourmentraux (51yo)

                Chairman of VINCI Construction France

                • Tenure: 4yrs
              • Manuel Peltier

                Chairman of Soletanche Freyssine

                • Gilles Godard

                  Chairman of VINCI Construction International Network

                  • Tenure: 3.2yrs

                Company Information

                VINCI SA's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: VINCI SA
                • Ticker: DG
                • Exchange: ENXTPA
                • Founded: 1899
                • Industry: Construction and Engineering
                • Sector: Capital Goods
                • Market Cap: €56.695b
                • Shares outstanding: 554.75m
                • Website: https://www.vinci.com

                Number of Employees


                Location

                • VINCI SA
                • 1, cours Ferdinand-de-Lesseps
                • Cedex
                • Rueil-Malmaison
                • Ile-de-France
                • 92851
                • France

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                SQUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
                VCIS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
                DGENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
                0NQMLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
                SQUXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
                DGSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
                DGPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
                DGWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
                DGBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
                DG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
                VCIS.YOTCPK (Pink Sheets LLC)ADRUSUSDMay 2004

                Biography

                VINCI SA engages in the concessions and contracting businesses worldwide. The company designs, finances, builds, and operates infrastructure and facilities comprising motorway, bridge and tunnel, airport, rail, and stadium facilities. It operates a motorway concession with a network of 4,443 kilometers in France; and 35 airports worldwide. The company also designs, finances, builds, and operates transport infrastructure and public amenities, such as motorways, bridges, tunnels, and urban roads with a network of 3,200 kilometers under public-private partnership arrangements; and provides industry, infrastructure, facilities management, and information and communication technology services. In addition, the company builds and maintains roads, motorways, railways, and urban infrastructure projects; produces materials, such as asphalt mixes; and operates quarries for aggregates, as well as designs and constructs residential and commercial property, civil engineering infrastructure, specialized civil engineering, water and pipeline infrastructure, and other projects. Further, it develops residential properties, business properties, and managed residences, as well as offers property services. VINCI SA was founded in 1899 and is headquartered in Rueil-Malmaison, France. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/21 21:06
                End of Day Share Price2020/01/21 00:00
                Earnings2019/06/30
                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.