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

• Market Cap: €15.94B
• Dividend Yield: 1.39%
• Average Volume (3M): 321.59K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.75
• Revenue Growth: 16.50%
• EPS Growth: 7.64%
• Country: ES
• Employees: 157,284
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): 0.75
• Shares Outstanding: 271,664,580
• 10 Day Avg. Volume: 271,556
• 30 Day Avg. Volume: 321,589
• PEG Ratio: 0.61
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €55.15
• Price Target Upside: -9.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: €67.00 ▲(9.57%Upside)

The overall score is driven primarily by strong financial performance, particularly in cash flow generation and maintaining a debt-free balance sheet. Technical analysis shows strong momentum, though caution is advised due to overbought conditions. Valuation metrics are fair, providing a moderate investment appeal.

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

ACS makes money through a diversified revenue model that encompasses various key streams. The primary source of revenue is its construction and infrastructure development projects, which include public works, residential and commercial building, and civil engineering projects across the globe. Additionally, ACS generates income from its industrial services division, offering maintenance, upgrades, and management services to energy, telecommunications, and transport sectors. Another significant revenue stream comes from environmental services, where ACS provides waste management, recycling, and water treatment solutions. The company's earnings are further bolstered by strategic partnerships and joint ventures, which enhance its project portfolio and market reach. ACS's ability to secure large contracts and its extensive international presence are critical factors contributing to its financial performance.

Actividades de Construccion y Servicios SA Financial Statement Overview

Summary

Actividades de Construccion y Servicios SA shows a balanced financial performance with strengths in cash flow generation and a solid balance sheet. While income statement margins have experienced variability, the company's ability to generate cash and maintain a debt-free status in the latest year is commendable.

Income Statement

The company shows moderate revenue growth and profitability. Gross profit margin remains stable, with a notable increase in net profit margin from previous years. However, EBIT and EBITDA margins have shown volatility, indicating fluctuations in operational efficiency. Overall, the income statement reflects a recovering trajectory after previous declines.

Balance Sheet

The balance sheet demonstrates a strong equity position with no reported debt in the latest year, which significantly reduces financial risk. However, the return on equity has been inconsistent, reflecting volatility in net income. The equity ratio indicates a moderate level of leverage, suggesting effective capital management. The stability of stockholders' equity over time is a positive indicator.

Cash Flow

The cash flow statement highlights strong free cash flow growth and positive operating cash flow, suggesting robust cash generation capabilities. The company has demonstrated improvement in free cash flow to net income ratio, enhancing financial flexibility. However, fluctuations in capital expenditures and financing cash flow indicate variability in investment and funding strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.63B	35.74B	33.62B	27.84B	34.94B
Gross Profit	13.35B	11.28B	10.25B	8.84B	11.33B
EBITDA	2.70B	1.90B	2.11B	805.65M	2.02B
Net Income	827.58M	780.12M	668.23M	-731.87M	896.05M
Balance Sheet
Total Assets	42.03B	36.50B	37.58B	35.66B	37.33B
Cash, Cash Equivalents and Short-Term Investments	12.34B	9.82B	10.42B	11.98B	8.96B
Total Debt	14.34B	10.39B	11.00B	10.99B	11.78B
Total Liabilities	36.91B	30.87B	31.20B	28.64B	33.06B
Stockholders Equity	4.71B	5.33B	5.55B	6.33B	3.53B
Cash Flow
Free Cash Flow	2.18B	1.01B	1.46B	-183.07M	265.23M
Operating Cash Flow	2.79B	1.50B	1.74B	203.14M	1.14B
Investing Cash Flow	-1.25B	-15.75M	-198.10M	3.40B	292.31M
Financing Cash Flow	496.66M	-1.65B	-3.54B	-770.95M	-1.06B

Actividades de Construccion y Servicios SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ACS, the sentiment is Positive. The current price of 61.15 is above the 20-day moving average (MA) of 57.48, above the 50-day MA of 56.98, and above the 200-day MA of 50.18, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 73.96 is Negative, neither overbought nor oversold. The STOCH value of 95.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ACS.

Actividades de Construccion y Servicios SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FER	78 Outperform	€32.74B	10.14	65.54%	1.70%	7.43%	608.14%
ANA	76 Outperform	€9.26B	21.34	8.59%	3.12%	12.74%	-21.62%
SCYR	73 Outperform	€2.83B	23.97	12.85%	5.57%	7.52%	-31.49%
FCC	73 Outperform	€5.51B	12.06	8.78%	4.29%	0.50%	-26.45%
ACS	69 Neutral	€15.94B	18.54	16.48%	1.39%	16.50%	7.64%
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
OHLA	59 Neutral	€437.35M	0.73	-11.26%	―	10.68%	-796.06%

Actividades de Construccion y Servicios SA Corporate Events

ACS Group Reports Strong Q1 2025 Financial Results with 17% Profit Increase

The ACS Group reported a net profit of 191 million euros for Q1 2025, marking a 17% increase in comparable terms from the previous year. Sales rose by 35.4% to 11,790 million euros, driven by strong performance across all activities, particularly Turner. The company’s EBITDA increased by 51.7%, reaching 699 million euros, while the project portfolio hit a record high of 90,807 million euros. Despite an increase in net debt to 2,847 million euros, the company’s international diversification and operational improvements have strengthened its industry positioning.

The most recent analyst rating on (ES:ACS) stock is a Sell with a EUR33.00 price target. To see the full list of analyst forecasts on Actividades de Construccion y Servicios SA stock, see the ES:ACS Stock Forecast page.

ACS Shareholders Approve 2024 Financials and Board Appointments

The Ordinary General Shareholders’ Meeting of ACS approved several key resolutions, including the annual accounts and management reports for the 2024 fiscal year, showing a profit of €647.5 million. The meeting also ratified and appointed directors, set the number of board members, and approved a new remuneration policy for directors, reflecting updates to executive compensation. These decisions are likely to impact the company’s governance and financial strategies moving forward.

ACS CEO Addresses Shareholders at General Meeting

The CEO of ACS, Juan Santamaría Cases, addressed the Ordinary General Meeting of Shareholders, highlighting the company’s strategic direction and operational focus. This meeting, held in Madrid, serves as a platform for discussing ACS’s future plans and engaging with stakeholders on important company matters.