Fomento de Construcciones y Contratas (FCC) AI Stock Analysis

• Market Cap: €5.58B
• Dividend Yield: 4.31%
• Average Volume (3M): 29.00K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.85
• Revenue Growth: 0.50%
• EPS Growth: -26.45%
• Country: ES
• Employees: 61,791
• Sector: Industrials
• Sector Strength: 87
• Industry: Waste Management
• EPS (TTM): N/A
• Shares Outstanding: 454,878,140
• 10 Day Avg. Volume: 14,562
• 30 Day Avg. Volume: 29,004
• PEG Ratio: 3.47
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.92
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: €14.00 ▲(14.19%Upside)

Fomento de Construcciones y Contratas demonstrates strong financial performance with consistent revenue growth and profitability. Its technical analysis indicates strong momentum, though the stock may be overbought. The valuation is attractive with a low P/E ratio and high dividend yield, making it appealing for investors seeking income. Overall, while the company faces challenges in managing debt and operational efficiency, it remains a solid investment opportunity in the waste management industry.

Fomento de Construcciones y Contratas Business Overview & Revenue Model

Company Description

Fomento de Construcciones y Contratas (FCC) is a Spanish-based company primarily engaged in environmental services, water management, and infrastructure development. With a strong presence in Europe, the Americas, and the Middle East, FCC provides a wide range of services including waste management, water treatment, urban infrastructure development, and construction. The company is known for its commitment to sustainability and innovation in delivering high-quality solutions across its sectors.

How the Company Makes Money

FCC generates revenue through several key streams. Primarily, the company earns money from its environmental services division, which includes waste management and recycling services for municipalities and businesses. Additionally, FCC's water management operations contribute significantly, involving water supply, sewage treatment, and desalination projects. In the infrastructure sector, FCC is involved in the construction of roads, bridges, tunnels, and public buildings, generating income through public and private sector contracts. Significant partnerships and long-term contracts with governments and large corporations bolster its revenue, alongside innovative projects in sustainable development that align with global trends towards environmental responsibility.

Fomento de Construcciones y Contratas Financial Statement Overview

Summary

Fomento de Construcciones y Contratas exhibits a solid financial position with consistent revenue growth and profitability, despite some challenges in operational efficiency and leverage. The company benefits from strong equity and cash generation capabilities, though it must manage its debt levels and capital expenditures to enhance financial stability.

Income Statement

Fomento de Construcciones y Contratas shows a strong financial performance with consistent revenue growth, increasing from €6.16 billion in 2020 to €9.07 billion in 2024. The gross profit margin remains robust, and while the net profit margin slightly fluctuated, it remains healthy. The steady increase in EBITDA and EBIT margins over the years indicates efficiency in operations, although the decline in EBIT in 2024 suggests potential operational challenges.

Balance Sheet

The company maintains a strong equity position with a rising stockholders' equity, but the debt-to-equity ratio remains relatively high due to significant total debt levels, indicating a leveraged position. The equity ratio shows a stable capital structure with a significant portion of assets funded by equity. Return on equity remains solid, reflecting effective utilization of equity capital.

Cash Flow

Cash flow performance is mixed, with strong operating cash flow but fluctuating free cash flow due to significant capital expenditures. The free cash flow growth rate shows inconsistencies, with 2024 recovering to positive territory. The operating cash flow to net income ratio indicates efficient cash generation relative to profitability, although free cash flow to net income has been inconsistent.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.70B	9.07B	8.41B	7.71B	6.66B	6.16B
	Gross Profit
3.96B	5.52B	4.96B	4.80B	4.22B	4.02B
	EBIT
778.36M	725.41M	910.25M	610.53M	802.21M	572.74M
	EBITDA
1.21B	1.49B	1.39B	1.19B	1.37B	1.04B
	Net Income Common Stockholders
447.15M	429.87M	590.99M	315.18M	580.13M	262.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.74B	2.11B	1.86B	1.73B	1.66B	1.45B
	Total Assets
18.03B	14.24B	16.72B	15.28B	14.24B	12.83B
	Total Debt
5.00B	4.93B	5.37B	5.37B	5.34B	4.74B
	Net Debt
3.68B	3.08B	3.76B	3.80B	3.80B	3.52B
	Total Liabilities
11.59B	10.50B	10.57B	10.34B	9.80B	9.93B
	Stockholders Equity
4.76B	2.73B	4.45B	3.39B	3.01B	2.29B
Cash Flow		Free Cash Flow
182.97M	437.97M	-66.05M	922.92M	358.85M	197.14M
	Operating Cash Flow
1.01B	1.28B	785.38M	1.55B	746.25M	605.07M
	Investing Cash Flow
-1.33B	-1.30B	-1.01B	-938.04M	193.08M	-401.55M
	Financing Cash Flow
263.63M	234.72M	210.26M	-567.20M	-627.73M	-138.44M

Fomento de Construcciones y Contratas Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.26
• 50DMA: Positive
• 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:FCC, the sentiment is Neutral. The current price of 12.26 is below the 20-day moving average (MA) of 12.44, above the 50-day MA of 11.29, and above the 200-day MA of 9.97, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 56.22 is Neutral, neither overbought nor oversold. The STOCH value of 65.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:FCC.

Fomento de Construcciones y Contratas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FER	78 Outperform	€31.72B	9.96	65.54%	1.43%	7.43%	608.14%
FCC	73 Outperform	€5.58B	12.71	8.78%	4.31%	0.50%	-26.45%
SCYR	73 Outperform	€2.75B	23.38	12.85%	3.62%	7.52%	-31.49%
OHLA	66 Neutral	€418.70M	0.73	-11.26%	―	10.68%	-796.06%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
ACS	64 Neutral	€14.69B	17.44	16.48%	1.61%	16.50%	7.64%
ENO	50 Neutral	€1.78B	18.38	-11.39%	26.00%	0.46%	-212.00%

Fomento de Construcciones y Contratas Corporate Events

Fomento de Construcciones y Contratas Announces Annual Shareholders’ Meeting

Fomento de Construcciones y Contratas, S.A. has announced its Annual General Shareholders’ Meeting to be held in Madrid on June 12, 2025, with a second call on June 13, 2025, if necessary. The meeting will cover several key agenda items including the examination and approval of the 2024 fiscal year accounts, re-election of directors, approval of directors’ remuneration policy, and the distribution of a flexible dividend. The company also plans to authorize the Board to increase share capital and reduce the notice period for Extraordinary General Meetings, among other administrative matters.

FCC Group Reports Revenue Growth Amidst Strategic Divestments

In the first quarter of 2025, FCC Group reported an 8.9% increase in revenue, driven by growth in its Environment and Water divisions following recent acquisitions. The company’s EBITDA rose by 14.6%, although the net result attributable to the parent company fell by 43.8% due to the spin-off of its Cement and Real Estate areas. Despite a slight increase in net financial debt and a minor decline in net equity, FCC’s revenue portfolio expanded by 6.3%, indicating robust operational performance across its business areas.

FCC Reports Revenue Growth Amid Business Restructuring

FCC reported an 8.9% increase in revenue for the first quarter of 2025, driven by significant growth in its Environmental and Water sectors. Despite the revenue boost, the company’s net result decreased by 43.8% due to the spin-off of its Real Estate and Cement businesses. The company’s expansion through acquisitions in the UK, USA, and France bolstered its Environmental business, while the Water area saw a 10.1% increase due to new contracts. The company’s revenue portfolio grew by 6.3%, supported by increased contracting in all business areas, particularly in Construction.