Construcciones y Auxiliar de Ferrocarriles (CAF) AI Stock Analysis

• Market Cap: €1.81B
• Dividend Yield: 2.68%
• Average Volume (3M): 23.84K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.79
• Revenue Growth: 6.84%
• EPS Growth: 16.03%
• Country: ES
• Employees: 16,333
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 2.13
• Shares Outstanding: 34,280,750
• 10 Day Avg. Volume: 30,710
• 30 Day Avg. Volume: 23,838
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €50.00
• Price Target Upside: -3.10% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: €55.00 ▲(6.59% Upside)

The overall stock score of 68 reflects strong financial performance, with robust revenue growth and cash flow generation. However, technical analysis indicates short-term weakness, which tempers the score. The valuation is reasonable, providing a balanced perspective on the stock's potential.

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 of income comes from the sale of rolling stock, including high-speed trains, commuter trains, and light rail vehicles, to public and private transportation operators worldwide. Additionally, CAF earns substantial revenue from maintenance contracts and after-sales services, ensuring the longevity and efficiency of its products. The company has significant partnerships with various government agencies and transport authorities, which often involve long-term contracts for both vehicle supply and maintenance. Additionally, CAF participates in international tenders and projects, expanding its reach and diversifying its income sources. The integration of innovative technology in their products also allows CAF to stay competitive, attracting further investments and contracts.

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	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
EBITDA	338.73M	313.90M	249.05M	256.94M	186.21M
Net Income	103.25M	89.16M	52.19M	85.92M	9.01M
Balance Sheet
Total Assets	5.22B	5.05B	4.91B	4.27B	4.08B
Cash, Cash Equivalents and Short-Term Investments	598.73M	568.24M	611.33M	682.74M	675.93M
Total Debt	822.26M	812.18M	957.77M	1.01B	1.04B
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: Negative
• Last Price: 51.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:CAF, the sentiment is Negative. The current price of 51.6 is below the 20-day moving average (MA) of 52.59, below the 50-day MA of 52.56, and above the 200-day MA of 43.16, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 27.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	77 Outperform	34.65B	10.31	53.32%	1.61%	5.75%	346.20%
FCC	70 Outperform	5.25B	22.12	15.73%	4.50%	5.00%	-64.19%
ACS	69 Neutral	17.40B	19.45	17.55%	2.92%	25.47%	7.63%
CAF	68 Neutral	€1.81B	14.59	14.10%	2.68%	6.84%	16.03%
OHLA	56 Neutral	596.96M	-8.42	-9.49%	―	5.25%	-19.03%
TLGO	46 Neutral	332.98M	-3.22	―	―	2.64%	-867.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.