Actividades de Construccion y Servicios SA (ACSAY) AI Stock Analysis

• Market Cap: $28.67B
• Dividend Yield: N/A
• Average Volume (3M): 279.00
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.54
• Revenue Growth: 26.19%
• EPS Growth: 9.88%
• Country: US
• Employees: 157,284
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.18
• Shares Outstanding: 1,466,988,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 279
• PEG Ratio: 2.22
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 5.63
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 1.55
• Enterprise Value/Ebitda: 9.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $23.50 ▲(9.00% Upside)

The score is driven primarily by strong financial performance (profitability, growth, and a low-risk balance sheet). Technicals are supportive but tempered by overbought signals (RSI and Stochastic). Valuation is the main headwind due to a relatively high P/E and no dividend yield data.

Positive Factors

Order Backlog Growth

A growing order backlog indicates strong future revenue potential, reflecting the company's ability to secure new contracts and maintain a steady pipeline of projects, which is crucial for long-term growth in the construction industry.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment capacity, enabling the company to fund strategic initiatives and manage debt effectively, which is vital for sustaining growth and financial stability.

Strategic Investments

Significant strategic investments enhance competitive positioning and growth prospects by expanding capabilities and market reach, ensuring the company remains relevant and competitive in evolving market conditions.

Negative Factors

Increased Net Debt

Rising net debt levels can strain financial resources and limit the company's ability to invest in growth opportunities, potentially impacting long-term financial health and operational flexibility.

Restructuring Costs

Restructuring costs indicate challenges in operational efficiency and may signal underlying issues in business processes, which could affect profitability if not addressed effectively over the long term.

Operational Inefficiencies

A decline in EBIT margin suggests potential inefficiencies in operations, which could hinder profitability and competitiveness if not rectified, impacting the company's ability to sustain growth and market position.

Actividades de Construccion y Servicios SA Business Overview & Revenue Model

Company Description

ACS, Actividades de Construcción y Servicios, S.A. provides construction and related services in Spain and internationally. The company undertakes construction activities related to development of highways, railways, maritime, airport works, hydraulic infrastructures, coasts, ports, civil engineering, educational and sports facilities, residential, and social infrastructures and facilities; undertakes contracts for the provision of mining services and infrastructure required for mining activities; and offers maintenance services for buildings, public places, and organizations. It also engages in the operation and maintenance activities, and development of real estate infrastructures; design, development, construction, and operation of infrastructure projects, real estates, and facilities; and promotion and development of transport and public facilities, as well as management of different public-private collaboration models. In addition, the company offers services for people, such as care for elderly citizens, dependent people, disabled people, and children aged up until the age of three; and manages playschools and collective restoration. Further, it provides services for building, such as maintenance, energy efficiency, cleaning, security, and logistics and auxiliary services; and services for public spaces comprising managing public lighting, which includes investing in changing light fittings, environmental services, and airport services. ACS, Actividades de Construcción y Servicios, S.A. was founded in 1997 and is based in Madrid, Spain.

How the Company Makes Money

ACSAY generates revenue primarily through contracts for construction projects, which include bidding for government and private sector contracts. The company earns money by providing specialized services such as project management, engineering, and construction supervision. Key revenue streams include construction fees, service contracts, and consultancy services. Additionally, ACSAY may engage in partnerships with other firms to combine resources for larger projects, enhancing its capacity and competitiveness in the market. Factors contributing to its earnings also include the company's reputation for quality and reliability, enabling it to secure repeat business and long-term contracts.

Actividades de Construccion y Servicios SA Financial Statement Overview

Summary

Strong profitability and revenue growth (rising net margin and higher revenue), supported by a very strong balance sheet with reduced debt (zero debt-to-equity). Cash generation is healthy with strong free cash flow growth, though EBIT margin decline and capex variability indicate some operational and investment volatility.

Income Statement

The company exhibits a strong gross profit margin and increasing net profit margin over the years, indicating efficient cost management. Revenue growth is evident with a significant increase from the previous year, showing a positive trajectory. However, the decline in EBIT margin from historical figures suggests potential operational inefficiencies. Overall, the income statement reflects solid profitability and growth potential with some room for operational improvements.

Balance Sheet

The balance sheet highlights a strong equity position with a high equity ratio and a reduction in debt levels, leading to a zero debt-to-equity ratio this year. The company has effectively managed its liabilities, resulting in a robust financial structure. However, the slight decrease in stockholders' equity over time suggests cautious optimism. Overall, the balance sheet portrays financial stability and a low-risk profile.

Cash Flow

The cash flow statement reveals strong free cash flow growth, supported by efficient operating cash flows. The free cash flow to net income ratio indicates healthy cash generation relative to net income. However, fluctuations in capital expenditure imply potential volatility in investment activities. The overall cash flow analysis underscores good cash management practices, though with some variability in investment outlay.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.00B	41.63B	35.74B	33.62B	27.84B	29.30B
Gross Profit	18.71B	13.35B	11.28B	10.25B	8.84B	8.80B
EBITDA	3.14B	2.70B	1.12B	897.79M	805.65M	2.02B
Net Income	861.20M	827.58M	780.12M	668.23M	3.05B	574.00M
Balance Sheet
Total Assets	41.30B	42.03B	36.50B	37.58B	35.66B	37.33B
Cash, Cash Equivalents and Short-Term Investments	10.87B	12.34B	9.82B	10.42B	12.29B	9.27B
Total Debt	14.24B	14.20B	10.39B	11.00B	11.08B	11.78B
Total Liabilities	36.88B	36.91B	30.87B	31.20B	28.64B	33.06B
Stockholders Equity	4.19B	4.71B	5.33B	5.55B	6.33B	3.53B
Cash Flow
Free Cash Flow	1.63B	2.18B	1.01B	1.46B	-183.07M	265.23M
Operating Cash Flow	2.45B	2.79B	1.50B	1.74B	203.14M	1.14B
Investing Cash Flow	-839.90M	-1.25B	-15.75M	-198.10M	3.40B	292.31M
Financing Cash Flow	-636.92M	496.66M	-1.65B	-3.54B	-770.95M	-1.06B

Actividades de Construccion y Servicios SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACSAY, the sentiment is Positive. The current price of 21.56 is above the 20-day moving average (MA) of 21.06, above the 50-day MA of 19.70, and above the 200-day MA of 15.53, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 62.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACSAY.

Actividades de Construccion y Servicios SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWR	78 Outperform	$69.11B	70.21	13.16%	0.09%	18.72%	23.97%
EME	73 Outperform	$30.79B	28.50	37.10%	0.16%	14.11%	26.26%
ACSAY	72 Outperform	$28.67B	30.83	19.17%	―	26.19%	9.88%
J	71 Outperform	$16.09B	58.17	7.67%	0.94%	-23.00%	-61.88%
ACM	69 Neutral	$12.65B	22.96	27.29%	1.06%	0.21%	53.80%
MTZ	66 Neutral	$18.96B	58.15	11.18%	―	12.99%	274.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%