ENXTLS:EGL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Mota-Engil SGPS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EGL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.3%

EGL

-4.7%

PT Construction

-2.7%

PT Market


1 Year Return

-25.2%

EGL

12.4%

PT Construction

12.2%

PT Market

Return vs Industry: EGL underperformed the Portuguese Construction industry which returned 12.4% over the past year.

Return vs Market: EGL underperformed the Portuguese Market which returned 12.2% over the past year.


Shareholder returns

EGLIndustryMarket
7 Day-9.3%-4.7%-2.7%
30 Day-14.5%-2.1%2.2%
90 Day-23.3%1.2%7.1%
1 Year-22.2%-25.2%16.7%12.4%17.3%12.2%
3 Year2.1%-6.5%25.2%12.4%38.3%22.0%
5 Year-45.8%-54.1%44.4%17.9%16.5%-55.4%

Price Volatility Vs. Market

How volatile is Mota-Engil SGPS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGL (€1.52) is trading below our estimate of fair value (€6.87)

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 (13.5x) compared to the Construction industry average (12.3x).

PE vs Market: EGL is good value based on its PE Ratio (13.5x) compared to the Portuguese market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: EGL is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: EGL is overvalued based on its PB Ratio (2.4x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

How is Mota-Engil SGPS forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGL's forecast earnings growth (16.1% per year) is above the savings rate (0.4%).

Earnings vs Market: EGL's earnings (16.1% per year) are forecast to grow faster than the Portuguese market (8% per year).

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

Revenue vs Market: EGL's revenue (2.2% per year) is forecast to grow slower than the Portuguese market (4.4% per year).

High Growth Revenue: EGL'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: EGL's Return on Equity is forecast to be high in 3 years time (28.9%)


Next Steps

Past Performance

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

-31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGL has a large one-off gain of €20.4M impacting its June 30 2019 financial results.

Growing Profit Margin: EGL's current net profit margins (0.9%) are higher than last year (0.1%).


Past Earnings Growth Analysis

Earnings Trend: EGL's earnings have declined by -31.3% per year over the past 5 years.

Accelerating Growth: EGL's earnings growth over the past year (857.9%) exceeds its 5-year average (-31.3% per year).

Earnings vs Industry: EGL earnings growth over the past year (857.9%) exceeded the Construction industry 2.1%.


Return on Equity

High ROE: EGL's Return on Equity (18.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mota-Engil SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: EGL's short term assets (€2.8B) do not cover its short term liabilities (€2.8B).

Long Term Liabilities: EGL's short term assets (€2.8B) exceed its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: EGL's debt to equity ratio (432.7%) is considered high.

Reducing Debt: EGL's debt to equity ratio has increased from 251.5% to 432.7% over the past 5 years.

Debt Coverage: EGL's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: EGL's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet

Inventory Level: EGL has a high level of physical assets or inventory.

Debt Coverage by Assets: EGL's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

4.88%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.9%markettop25%6.9%industryaverage3.7%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: EGL's dividend (4.88%) is higher than the bottom 25% of dividend payers in the Portuguese market (2.89%).

High Dividend: EGL's dividend (4.88%) is low compared to the top 25% of dividend payers in the Portuguese market (6.91%).


Stability and Growth of Payments

Stable Dividend: EGL's dividend payments have been volatile in the past 10 years.

Growing Dividend: EGL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66%), EGL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGL's dividends in 3 years are forecast to be well covered by earnings (44.2% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Gonçalo Nuno de Andrade Moura Martins (54yo)

7.1yrs

Tenure

€421,507

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 ($USD457.51K) is below average for companies of similar size in the Portuguese market ($USD689.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gonçalo Nuno de Andrade Moura Martins
Deputy Chairman & CEO7.1yrs€421.51k0.0054% 18.8k
Carlos António Vasconcelos dos Santos
Deputy Chairman1yrs€277.46k0.16% 575.7k
José Pedro Matos Marques de Freitas
CFO & Non-Independent Executive Director7.1yrs€217.25k0.0087% 30.5k
Ismael Antunes Gaspar
Non-Independent Executive Director11.9yrs€288.17k0.00043% 1.5k
Luís Filipe da Silva
Non-Independent & Non-Executive Director9.9yrs€241.75k0.0054% 18.9k
João Pedro Dos Santos Parreira
Non-Independent Executive Director5.8yrs€301.14kno data
Eduardo João Frade Pimentel
Non-Independent Executive Director3.8yrs€256.09k0.012% 42.4k
Manuel António da Fonseca da Mota
Non-Independent Executive Director3.8yrs€385.00k0.19% 666.6k
Ivone Dos Martins
Secretary1.8yrsno datano data

7.1yrs

Average Tenure

Experienced Management: EGL's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gonçalo Nuno de Andrade Moura Martins
Deputy Chairman & CEO7.1yrs€421.51k0.0054% 18.8k
Carlos António Vasconcelos dos Santos
Deputy Chairman1yrs€277.46k0.16% 575.7k
José Pedro Matos Marques de Freitas
CFO & Non-Independent Executive Director7.1yrs€217.25k0.0087% 30.5k
Ismael Antunes Gaspar
Non-Independent Executive Director11.9yrs€288.17k0.00043% 1.5k
Luís Filipe da Silva
Non-Independent & Non-Executive Director9.9yrs€241.75k0.0054% 18.9k
João Pedro Dos Santos Parreira
Non-Independent Executive Director5.8yrs€301.14kno data
Eduardo João Frade Pimentel
Non-Independent Executive Director3.8yrs€256.09k0.012% 42.4k
Manuel António da Fonseca da Mota
Non-Independent Executive Director3.8yrs€385.00k0.19% 666.6k
António Manuel Queirós da Mota
Chairman0yrs€476.00k1.82% 6.4m
Arnaldo José da Costa Figueiredo
Deputy Chairman0yrs€411.00kno data
Jorge de Sacadura Almeida Coelho
Non-Executive & Independent Deputy Chairman2.1yrs€35.00kno data

4.8yrs

Average Tenure

Experienced Board: EGL's board of directors are considered experienced (4.8 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

Mota-Engil, SGPS, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mota-Engil, SGPS, S.A.
  • Ticker: EGL
  • Exchange: ENXTLS
  • Founded: 1946
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €350.592m
  • Shares outstanding: 231.41m
  • Website: https://www.mota-engil.pt

Number of Employees


Location

  • Mota-Engil, SGPS, S.A.
  • Edifício Mota
  • Rua do Rego Lameiro, Nº 38
  • Porto
  • Norte
  • 4300-454
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGLENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURMay 1995
0FB0LSE (London Stock Exchange)YesOrdinary SharesGBEURMay 1995
M09DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1995
EGLUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 1995

Biography

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 facilities, ports, roads, and urban facilities; and agricultural and industrial, office and commerce, housing, public building, and silo and chimney projects, as well as provides buildings rehabilitation services. The company also collects, treats, recovers, and disposes urban solid waste; offers urban cleaning services; exploits and processes minerals; extracts gravel, sand, and crushed stone; provides human resource management services in mining; distributes electric energy; and produces electric and thermal energy. In addition, it is involved in the design and construction of social housing; marketing, management, and exploitation of technological and industrial business parks, and technological business hosting; ITS business; provision of terminal exploitation services; development, purchase, and sale of real estate; tourism, hotel, restaurant, and sports activities; trade and management of international holdings, special foundations; and construction, management, and maintenance of golf courses. Further, the company provides inspection, consulting, administrative, commercial, environmental education, and sea transport services. Additionally, it is involved in the design, construction, management, and exploitation of parking lots; exploitation and management of water systems; landscape gardening activities; rental of construction equipment; and manufacture and trade of clay goods. Furthermore, the company engages in the rail transport of goods, stainless steel works, management of other companies, and finance and consulting activities. The company was founded in 1946 and is headquartered in Porto, Portugal. Mota-Engil, SGPS, S.A. is a subsidiary of Mota Gestao E Participacoes SGPS, SA. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 20:39
End of Day Share Price2020/02/24 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.