Fomento de Construcciones y Contratas (FCC) AI Stock Analysis

• Market Cap: €5.36B
• Dividend Yield: 4.19%
• Average Volume (3M): 26.96K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.71
• Revenue Growth: 0.50%
• EPS Growth: -26.45%
• Country: ES
• Employees: 61,791
• Sector: Industrials
• Sector Strength: 85
• Industry: Waste Management
• EPS (TTM): N/A
• Shares Outstanding: 454,878,140
• 10 Day Avg. Volume: 38,220
• 30 Day Avg. Volume: 26,960
• 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: 65 Neutral
• Price Target: €14.00 ▲(18.85%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, S.A., together with its subsidiaries, engages in the environmental services, water management, and infrastructure development businesses in Europe and internationally. The company offers services related to urban sanitation, industrial waste treatment and waste recycling, street cleansing, conservation of green areas, maintenance of sewerage networks, recovery of contaminated soils, and facility management. It also provides end-to-end water management services relating to the integrated water cycle, such as collection, purification and distribution of water for human consumption; sewage collection, filtration and purification; design, construction, and operation and maintenance of water infrastructure for municipal, industrial, agricultural services, etc. In addition, the company undertakes infrastructure works and building construction, such as motorways, roads, tunnels, bridges, hydraulic works, ports, airports, housing estates, housing, non-residential building, lighting, industrial climate control installations, environmental restoration, etc. Further, it is involved in the operation of quarries and mineral deposits; production of cement, limestone, plaster, and prefabricated by-products; and production of concrete. The company was founded in 1900 and is headquartered in Madrid, Spain. Fomento de Construcciones y Contratas, S.A. is a subsidiary of Control Empresarial de Capitales, S.A. de C.V.

How the Company Makes Money

FCC generates revenue through a diverse portfolio of services and projects. Its key revenue streams include urban services such as waste management and street cleaning, water management services including supply and sanitation, and construction activities encompassing civil engineering and building works. Additionally, FCC earns from its cement production operations and the development of renewable energy projects. The company's financial performance is bolstered by long-term public and private contracts, strategic partnerships with government entities, and its ability to leverage its extensive expertise to secure large-scale infrastructure projects across the globe.

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
EBITDA	1.21B	1.49B	1.39B	1.19B	1.37B	1.04B
Net Income	447.15M	429.87M	590.99M	315.18M	580.13M	262.18M
Balance Sheet
Total Assets	18.03B	14.24B	16.72B	15.28B	14.24B	12.83B
Cash, Cash Equivalents and Short-Term Investments	1.74B	2.11B	1.86B	1.73B	1.66B	1.45B
Total Debt	5.00B	4.93B	5.37B	5.37B	5.34B	4.74B
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: 11.78
• 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 11.78 is below the 20-day moving average (MA) of 12.00, above the 50-day MA of 11.61, and above the 200-day MA of 9.87, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 43.98 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
FCC	65 Neutral	€5.36B	12.21	8.78%	4.19%	0.50%	-26.45%
Sector *	65 Neutral	$10.75B	15.69	5.29%	1.89%	3.09%	-27.41%
0HAC		€14.72B	17.33	16.48%	1.40%	―	―
0K97		€1.86B	16.61	-11.39%	28.44%	―	―
0P2N		€32.23B	10.02	65.54%	1.42%	―	―
0MKG		€462.23M	0.73	-11.26%	―	―	―
0OFU		€2.77B	23.50	12.85%	1.27%	―	―

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.