Construcciones y Auxiliar de Ferrocarriles (CAF) AI Stock Analysis

• Market Cap: €2.02B
• Dividend Yield: 2.28%
• Average Volume (3M): 33.90K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.70
• Revenue Growth: 6.84%
• EPS Growth: 16.03%
• Country: ES
• Employees: 16,333
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): N/A
• Shares Outstanding: 34,280,750
• 10 Day Avg. Volume: 26,573
• 30 Day Avg. Volume: 33,901
• PEG Ratio: 0.72
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 12.11
• 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: €59.20
• Price Target Upside: 0.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €66.00 ▲(12.05% Upside)

Construcciones y Auxiliar de Ferrocarriles is performing well financially, with strong revenue growth and improving profit margins. The technical indicators show positive momentum, although the RSI suggests caution as it approaches overbought levels. Valuation metrics indicate the stock is fairly valued with a reasonable P/E ratio and a decent dividend yield. These factors collectively contribute to a solid overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, which is crucial for long-term sustainability and competitiveness.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Profit Margins

Improving profit margins reflect efficient cost management and operational efficiency, which are essential for sustainable profitability.

Negative Factors

Debt Levels

While manageable, the moderate debt levels require careful monitoring to ensure they do not hinder financial flexibility or increase financial risk.

Equity Financing

A modest reliance on equity financing could limit the company's ability to leverage equity for growth, potentially impacting capital structure optimization.

Profit Margin Variability

Low net profit margins compared to gross margins may indicate higher operating costs or inefficiencies that could impact long-term profitability.

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 primarily through the sale of trains and rail vehicles, including passenger trains, metros, and trams, which are customized to meet the specific needs of clients around the world. The company also earns income from long-term maintenance contracts and after-sales services, ensuring the operational efficiency and safety of their products throughout their lifecycle. Key revenue streams include government contracts and public-private partnerships for railway infrastructure projects, where CAF collaborates with various national and local governments. Additionally, strategic alliances and partnerships with other technology firms enhance their service offerings, contributing to revenue through innovative solutions in rail transport.

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. Overall, the company is on a positive trajectory, with strengths in profitability and cash flow generation, while maintaining stable leverage.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.14B	4.21B	3.83B	3.17B	2.94B	2.76B
Gross Profit	811.49M	738.48M	631.67M	540.82M	553.59M	462.17M
EBITDA	348.30M	338.73M	313.90M	249.05M	256.94M	190.39M
Net Income	132.91M	103.25M	89.16M	52.19M	85.92M	9.01M
Balance Sheet
Total Assets	5.46B	5.22B	5.05B	4.91B	4.27B	4.08B
Cash, Cash Equivalents and Short-Term Investments	562.66M	598.73M	568.24M	611.33M	682.74M	675.93M
Total Debt	887.83M	910.20M	900.68M	957.77M	1.01B	1.04B
Total Liabilities	4.54B	4.32B	4.18B	4.13B	3.53B	3.43B
Stockholders Equity	903.84M	882.19M	855.24M	775.92M	726.66M	632.97M
Cash Flow
Free Cash Flow	105.41M	98.77M	27.19M	33.42M	108.96M	127.85M
Operating Cash Flow	191.63M	184.83M	106.13M	110.97M	153.55M	177.15M
Investing Cash Flow	-15.49M	97.71M	40.64M	27.60M	-61.23M	-26.77M
Financing Cash Flow	-103.29M	-130.32M	-177.69M	-220.75M	-127.10M	-112.27M

Construcciones y Auxiliar de Ferrocarriles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.90
• 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:CAF, the sentiment is Positive. The current price of 58.9 is above the 20-day moving average (MA) of 54.90, above the 50-day MA of 54.07, and above the 200-day MA of 49.13, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 66.97 is Neutral, neither overbought nor oversold. The STOCH value of 93.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
FER	78 Outperform	€39.82B	11.91	69.30%	1.42%	5.75%	346.20%
CAF	76 Outperform	€2.02B	16.22	14.10%	2.28%	6.84%	16.03%
ACS	70 Outperform	€22.05B	25.07	19.75%	2.38%	25.47%	7.63%
FCC	70 Outperform	€5.27B	22.24	5.28%	4.49%	5.00%	-64.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OHLA	48 Neutral	€483.64M	-12.75	-6.41%	―	1.39%	72.34%
TLGO	48 Neutral	€343.76M	-1.90	-92.71%	―	-16.41%	-952.46%

Construcciones y Auxiliar de Ferrocarriles Corporate Events

CAF Shareholders Approve Key Resolutions and Strategic Initiatives

CAF’s General Shareholders’ Meeting approved key resolutions, including the annual accounts and management report for 2024, a dividend distribution plan, and the re-election of an independent director. The meeting also authorized the board to acquire company shares for various purposes, including employee remuneration, over the next five years, highlighting a strategic focus on shareholder value and operational flexibility.

The most recent analyst rating on (ES:CAF) stock is a Buy with a EUR45.00 price target. To see the full list of analyst forecasts on Construcciones y Auxiliar de Ferrocarriles stock, see the ES:CAF Stock Forecast page.