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

• Market Cap: €19.06B
• Dividend Yield: 2.52%
• Average Volume (3M): 295.26K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.81
• Revenue Growth: 25.47%
• EPS Growth: 7.63%
• Country: ES
• Employees: 157,284
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.79
• Shares Outstanding: 271,664,580
• 10 Day Avg. Volume: 255,272
• 30 Day Avg. Volume: 295,263
• PEG Ratio: 1.97
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 5.75
• 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: €74.87
• Price Target Upside: -6.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €88.00 ▲(10.48% Upside)

The overall stock score of 70 reflects a strong technical outlook and solid financial performance, particularly in cash flow generation and balance sheet strength. The valuation is somewhat high, which tempers the score, but the stock's technical momentum and financial stability support its potential for growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding operations and successful project execution, enhancing long-term market position.

Cash Generation

Robust cash generation supports financial flexibility, enabling strategic investments and operational resilience.

Debt-Free Status

A debt-free balance sheet reduces financial risk and enhances the company's ability to invest in growth opportunities.

Negative Factors

Margin Volatility

Fluctuating margins indicate inconsistent operational efficiency, which may impact profitability and predictability.

Return on Equity Inconsistency

Inconsistent return on equity suggests volatility in net income, potentially affecting investor confidence and valuation.

Capital Expenditure Variability

Variable capital expenditures indicate uncertainty in investment strategy, potentially impacting long-term growth plans.

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 generates revenue through multiple streams, primarily from the construction and engineering services it provides for public and private sector projects. The company undertakes large infrastructure projects, such as roads, bridges, and airports, which typically involve long-term contracts that ensure steady income. Additionally, ACS earns revenue from its concessions, where it develops and operates infrastructure assets, generating income through tolls, fees, or service contracts. The company also has strategic partnerships with governments and other corporations that facilitate access to substantial projects, enhancing its market position and revenue potential. Furthermore, ACS diversifies its income through subsidiaries involved in renewable energy and environmental services, aligning with global trends toward sustainability and energy efficiency.

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. The overall picture suggests a company on a stable recovery path with potential for growth.

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	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	1.90B	2.11B	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	8.96B
Total Debt	14.24B	14.34B	10.39B	11.00B	10.99B	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: 79.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 79.65 is above the 20-day moving average (MA) of 76.82, above the 50-day MA of 72.82, and above the 200-day MA of 61.07, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 91.59 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	€39.09B	11.69	69.30%	1.28%	5.75%	346.20%
ACS	70 Outperform	€19.06B	21.68	19.75%	2.52%	25.47%	7.63%
FCC	70 Outperform	€5.39B	22.76	5.28%	4.33%	5.00%	-64.19%
ANA	69 Neutral	€10.88B	13.03	18.00%	3.06%	4.87%	339.22%
SCYR	65 Neutral	€2.98B	32.17	10.80%	5.25%	2.03%	-32.59%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
OHLA	41 Neutral	€610.08M	-8.60	-6.41%	―	1.39%	72.34%