Shares in VINCI show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company has a good ESG score relative to its sector, according to MSCI.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The company returns high margins, thereby supporting business profitability.
● The company is one of the best yield companies with high dividend expectations.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
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VINCI is the world leader in construction, concessions and related services. Net sales (including intragroup) break down by activity as follows:
- design and construction of infrastructure (42.8%; VINCI Construction): primarily in the fields of building, civil engineering and hydraulics. In addition, the group is developing a business in the construction, renovation and maintenance of transport infrastructure (roads, freeways and railroads; Eurovia), in the production of aggregates (No. 1 in France) and in urban development;
- design, execution, and maintenance of energy and telecom infrastructures (39.4%; VINCI Energies and Cobra IS);
- sub-contracted infrastructure management (16.3%; VINCI Concessions): primarily managing roads and highways (mainly through Autoroutes du Sud de la France and Cofiroute), parking areas, airport activities;
- other (1.5%): primarily property development (residential properties, business properties, managed residences and property services).
Net sales are distributed geographically as follows: France (41.3%), the United Kingdom (9.9%), Germany (8.7%), Spain (5.1%), Europe (14.6%), North America (7.3%), Central and South America (5.8%), Africa (2.3%) and other (5%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
