Shares in ACS, Actividades de Construcción y Servicios, S.A. do not show any sign of a slowdown in the ascending dynamic. Investors could bet on a continuation of the underlying trend.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company shows low valuation levels, with an enterprise value at 0.29 times its sales.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● The company is one of the best yield companies with high dividend expectations.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company has insufficient levels of profitability.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● Over the past twelve months, analysts' opinions have been revised negatively.
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ACS, Actividades de Construcción y Servicios, S.A. is one of Spain's leading construction groups. Net sales break down by activity as follows:
- construction of infrastructures and buildings (93.3%): civil engineering infrastructures (primarily highways, hydraulic constructions and railroads), non-residential and residential buildings;
- services (5.4%): cleaning, waste collection and treatment. Moreover, the group offers maintenance services of urban and industrial infrastructures, port and logistical services, and also social services and personal assistance services.
- industrial services (0.5%): development, construction, installation and maintenance of distribution networks of electricity, gas and water, industrial production systems, telecommunication networks, road traffic control systems, etc.;
- other (0.8%).
Net sales are distributed geographically as follows: Spain (9.4%), the United States (56.3%), Australia (20.2%), Canada (5.3%), Germany (2.4%) and others (6.4%).