Mota-Engil SGPS (ENXTLS:EGL) - Share price, News & Analysis

EGL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	1/6
Financial Health	1/6
Dividends	0/6

EGL Stock Overview

Mota-Engil, SGPS, S.A. provides construction services for public and private customers in Europe, Africa, and Latin America.

Rewards

Trading at 65.5% below our estimate of its fair value

Earnings are forecast to grow 33.03% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Shareholders have been diluted in the past year

Mota-Engil SGPS Competitors

Compagnie de Saint-Gobain

ENXTPA:SGO

€27.7b

Acciona

BME:ANA

€10.1b

Imerys

ENXTPA:NK

€2.9b

SCR-Sibelco

ENXTBR:094426466

€2.3b

Price History & Performance

Summary of all time highs, changes and price drops for Mota-Engil SGPS
Historical stock prices
Current Share Price	€1.35
52 Week High	€1.50
52 Week Low	€1.11
Beta	1.65
1 Month Change	2.89%
3 Month Change	11.74%
1 Year Change	-7.40%
3 Year Change	-35.86%
5 Year Change	-49.93%
Change since IPO	65.05%

Shareholder Returns

	EGL	PT Construction	PT Market
7D	5.1%	-1.7%	5.2%
1Y	-7.4%	-5.5%	11.6%

Return vs Industry: EGL underperformed the Portuguese Construction industry which returned -6.2% over the past year.

Return vs Market: EGL underperformed the Portuguese Market which returned 8.7% over the past year.

Price Volatility

Is EGL's price volatile compared to industry and market?
EGL volatility
EGL Average Weekly Movement	3.7%
Construction Industry Average Movement	5.4%
Market Average Movement	4.4%
10% most volatile stocks in PT Market	6.0%
10% least volatile stocks in PT Market	3.3%

Stable Share Price: EGL is less volatile than 75% of Portuguese stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EGL's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	18,634	Gonçalo Nuno de Andrade Moura Martins	https://www.mota-engil.com

Mota-Engil, SGPS, S.A. provides construction services for public and private customers in Europe, Africa, and Latin America. It constructs infrastructure projects, including airports, railways, hydraulic, ports, roads, and urban facilities; and agricultural and industrial, public building, office and commerce, housing, and silo and chimney projects, as well as provides buildings rehabilitation services. The company also collects, treats, recovers, and disposes urban solid, non-hazardous, and industrial waste; explores mineral resources; extracts gravel, sand, and crushed stone; generates and distributes electric energy; and produces hydroelectric energy.

Mota-Engil SGPS Fundamentals Summary

How do Mota-Engil SGPS's earnings and revenue compare to its market cap?
EGL fundamental statistics
Market Cap	€406.53m
Earnings (TTM)	€21.64m
Revenue (TTM)	€2.59b

18.8x

P/E Ratio

0.2x

P/S Ratio

Is EGL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EGL income statement (TTM)
Revenue	€2.59b
Cost of Revenue	€668.26m
Gross Profit	€1.92b
Other Expenses	€1.90b
Earnings	€21.64m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 01, 2022

Earnings per share (EPS)	0.072
Gross Margin	74.22%
Net Profit Margin	0.83%
Debt/Equity Ratio	449.0%

How did EGL perform over the long term?

See historical performance and comparison

Valuation

Is Mota-Engil SGPS undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EGL (€1.35) is trading below our estimate of fair value (€3.92)

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

Price To Earnings Ratio

PE vs Industry: EGL is poor value based on its PE Ratio (18.8x) compared to the European Construction industry average (12.5x).

PE vs Market: EGL is poor value based on its PE Ratio (18.8x) compared to the Portuguese market (16.2x).

Price to Earnings Growth Ratio

PEG Ratio: EGL is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: EGL is overvalued based on its PB Ratio (2.7x) compared to the XE Construction industry average (1.5x).

Future Growth

How is Mota-Engil SGPS forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

33.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGL's forecast earnings growth (33% per year) is above the savings rate (1.2%).

Earnings vs Market: EGL's earnings (33% per year) are forecast to grow faster than the Portuguese market (9.7% per year).

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

Revenue vs Market: EGL's revenue (7.4% per year) is forecast to grow faster than the Portuguese market (5.4% per year).

High Growth Revenue: EGL's revenue (7.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EGL's Return on Equity is forecast to be very high in 3 years time (51.6%).

Past Performance

How has Mota-Engil SGPS performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-5.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EGL has a large one-off gain of €72.1M impacting its December 31 2021 financial results.

Growing Profit Margin: EGL became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: EGL's earnings have declined by 5.1% per year over the past 5 years.

Accelerating Growth: EGL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EGL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (22.3%).

Return on Equity

High ROE: EGL's Return on Equity (13.5%) is considered low.

Financial Health

How is Mota-Engil SGPS's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EGL's short term assets (€2.9B) do not cover its short term liabilities (€3.0B).

Long Term Liabilities: EGL's short term assets (€2.9B) exceed its long term liabilities (€2.0B).

Debt to Equity History and Analysis

Debt Level: EGL's net debt to equity ratio (343.4%) is considered high.

Reducing Debt: EGL's debt to equity ratio has increased from 297% to 449% over the past 5 years.

Debt Coverage: EGL's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: EGL's interest payments on its debt are not well covered by EBIT (2.3x coverage).

Balance Sheet

Dividend

What is Mota-Engil SGPS current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.40%

Forecast Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

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

High Dividend: Unable to evaluate EGL'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 EGL's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: EGL is not paying a notable dividend for the Portuguese market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EGL has not reported any payouts.

Discover strong dividend paying companies

Management

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

6.0yrs

Average board tenure

CEO

Gonçalo Nuno de Andrade Moura Martins (56 yo)

9.33yrs

Tenure

€442,619

Compensation

Mr. Gonçalo Nuno Gomes de Andrade Moura Martins has been the Chief Executive Officer of Mota-Engil, SGPS, SA since January 7, 2013. Mr. de Andrade Moura Martins serves as the Chief Executive Officer and Me...

CEO Compensation Analysis

Compensation vs Market: Gonçalo Nuno's total compensation ($USD472.98K) is below average for companies of similar size in the Portuguese market ($USD770.69K).

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

Board Members

Experienced Board: EGL's board of directors are considered experienced (6 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 been diluted in the past year, with total shares outstanding growing by 29.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31