Construcciones y Auxiliar de Ferrocarriles (CAF) AI Stock Analysis

• Market Cap: €1.63B
• Dividend Yield: 1.89%
• Average Volume (3M): 47.70K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.80
• Revenue Growth: 10.10%
• EPS Growth: 15.80%
• Country: ES
• Employees: 16,333
• Sector: Industrials
• Sector Strength: 85
• Industry: Railroads
• EPS (TTM): N/A
• Shares Outstanding: 34,280,750
• 10 Day Avg. Volume: 34,378
• 30 Day Avg. Volume: 47,695
• PEG Ratio: -0.44
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.15
• 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: €45.00
• Price Target Upside: -5.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: €54.00 ▲(13.33%Upside)

The overall stock score reflects the company's robust financial performance and steady valuation metrics. While the stock shows strong bullish momentum, potential overbought conditions may temper immediate upside. The lack of recent earnings call insights or notable corporate events means the score is primarily driven by fundamental and technical analysis.

Construcciones y Auxiliar de Ferrocarriles Business Overview & Revenue Model

Company Description

Construcciones y Auxiliar de Ferrocarriles, S.A. designs, manufactures, and sells rolling stock and rail components worldwide. It offers high speed trains, regional trains, commuter trains, metros, LRV's and tram-trains, trams and light metros, and locomotives, as well as electric and hydrogen buses. The company also provides equipment and components, such as wheel sets, wheels, axles, and gear units, as well as after-sales services, including technological advice and inspection guidelines; and traction systems and converters, energy storage systems, and control and communication systems, as well as financing solutions. In addition, it designs, manufactures, supplies, and maintains railway signaling systems. Further, the company is involved in the provision of maintenance, and refurbishment and upgrading services; data compilation, storage, and processing and analysis services; management of spare parts and workshop equipment; and technical support and consultancy. Additionally, it develops turnkey solutions that cover a range of activities, such as viability studies, civil works, electrification and signaling, maintenance, and the operation of the system. The company was formerly known as Compañía Auxiliar de Ferrocarriles S.A. and changed its name to Construcciones y Auxiliar de Ferrocarriles, S.A. in 1971. Construcciones y Auxiliar de Ferrocarriles, S.A. was incorporated in 1917 and is headquartered in Beasain, Spain.

How the Company Makes Money

CAF generates revenue through several key streams. The primary source is the sale of rolling stock, which includes trains, trams, and other rail vehicles. The company also earns significant income from its maintenance and after-sales services, providing long-term support to its customers to ensure the efficient operation of their transportation systems. Additionally, CAF engages in turnkey projects where they manage entire transportation system developments from design to implementation, which can include infrastructure and signaling solutions. Partnerships with local and international transit authorities and governments play a crucial role in securing contracts and expanding their market presence. By leveraging technological innovations and customer-centric solutions, CAF continues to grow its revenue base and maintain a competitive edge in the global rail industry.

Construcciones y Auxiliar de Ferrocarriles Financial Statement Overview

Summary

Construcciones y Auxiliar de Ferrocarriles demonstrates solid financial health with strong revenue growth and improving profit margins. The balance sheet remains robust with a balanced debt-to-equity ratio and improving ROE. Cash flow performance is commendable, with significant free cash flow growth, underscoring efficient financial management.

Income Statement

The company shows strong revenue growth with a 10.1% increase from 2023 to 2024, indicating a positive trajectory. Gross profit margin is stable at 17.5%, and the net profit margin improved to 2.5% in 2024, showing enhanced profitability. EBIT and EBITDA margins are also healthy, at 5.1% and 8.0% respectively, reflecting efficient cost management.

Balance Sheet

The debt-to-equity ratio is moderate at 0.93, indicating a balanced approach to leveraging. Return on equity (ROE) improved to 11.7%, reflecting better utilization of equity to generate profits. The equity ratio is 16.9%, which suggests a modest reliance on equity financing. Overall, the balance sheet shows stability with manageable debt levels.

Cash Flow

Operating cash flow to net income ratio is strong, indicating effective cash conversion. Free cash flow saw significant growth of 263% from 2023 to 2024, highlighting improved cash generation capabilities. The company's cash flow management supports its operational and financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.21B	3.83B	3.17B	2.94B	2.76B
	Gross Profit
738.48M	631.67M	540.82M	553.59M	462.17M
	EBIT
216.14M	178.81M	138.64M	164.94M	87.83M
	EBITDA
338.73M	313.90M	249.05M	256.94M	186.21M
	Net Income Common Stockholders
103.25M	89.16M	52.19M	85.92M	9.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
598.73M	568.24M	611.33M	682.74M	675.93M
	Total Assets
5.22B	5.05B	4.91B	4.27B	4.08B
	Total Debt
822.26M	812.18M	957.77M	1.01B	1.04B
	Net Debt
248.72M	369.39M	484.43M	463.40M	462.68M
	Total Liabilities
4.32B	4.18B	4.13B	3.53B	3.43B
	Stockholders Equity
882.19M	855.24M	775.92M	726.66M	632.97M
Cash Flow		Free Cash Flow
98.77M	27.19M	33.42M	108.96M	127.85M
	Operating Cash Flow
184.83M	106.13M	110.97M	153.55M	177.15M
	Investing Cash Flow
97.71M	40.64M	27.60M	-61.23M	-26.77M
	Financing Cash Flow
-130.32M	-177.69M	-220.75M	-127.10M	-112.27M

Construcciones y Auxiliar de Ferrocarriles Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:CAF, the sentiment is Neutral. The current price of 47.65 is below the 20-day moving average (MA) of 48.35, above the 50-day MA of 44.46, and above the 200-day MA of 37.86, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 17.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:CAF.

Construcciones y Auxiliar de Ferrocarriles Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAF	72 Outperform	€1.63B	15.80	11.89%	1.89%	10.10%	15.80%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
0HAC		€14.69B	17.41	16.48%	2.89%	―	―
0P2N		€31.72B	9.96	65.54%	1.43%	―	―
0HAA		€5.58B	12.66	8.78%	4.31%	―	―
0MKG		€418.70M	0.73	-11.26%	―	―	―
0R99		€368.31M	20.37	-47.29%	1.95%	―	―

Construcciones y Auxiliar de Ferrocarriles Corporate Events

CAF Announces Ordinary General Meeting of Shareholders for 2025

CAF has announced the convening of its Ordinary General Meeting of Shareholders, scheduled for June 14, 2025, at its registered office in Beasain, Gipuzkoa. The agenda includes the approval of the 2024 financial year accounts, management reports, and a dividend distribution of 1.34 euros per share. Additionally, the meeting will address the re-election of a director, the setting of the board size, and authorization for share acquisitions, reflecting the company’s ongoing governance and financial strategies.

CAF Expands Global Presence with Major UK and Colombian Contracts

CAF has secured two significant maintenance contracts in the UK and Colombia, valued at nearly 400 million euros. In the UK, CAF renewed its agreement with Northern Trains Limited and Eversholt Rail Limited for a decade, covering maintenance of 101 trains, thus reinforcing its strategic position in the British railway market. In Colombia, CAF signed a long-cycle maintenance contract with Metro de Medellín for 38 train units, further solidifying its relationship with the Colombian operator and enhancing urban mobility in Medellín.

CAF Reports Q1 2025 Liquidity Contract Details

CAF has communicated details regarding its liquidity contract with Kutxabank Investment S.V, S.A. for the first quarter of 2025. The transactions under this contract resulted in a final balance of 38,929 shares and 1,450,177.49 euros in cash, reflecting the company’s ongoing financial management efforts.