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Fomento de Construcciones y Contratas SA (ES:FCC)
BME:FCC
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Fomento de Construcciones y Contratas (FCC) AI Stock Analysis

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ES:FCC

Fomento de Construcciones y Contratas

(BME:FCC)

Rating:73Outperform
Price Target:
€13.00
▲(12.46%Upside)
Fomento de Construcciones y Contratas has a solid overall stock score driven by strong financial performance and attractive valuation. While the technical analysis indicates negative momentum, the company's valuation metrics provide a cushion for potential growth. The absence of recent earnings call data limits insight into management's outlook.

Fomento de Construcciones y Contratas (FCC) vs. iShares MSCI Spain ETF (EWP)

Fomento de Construcciones y Contratas Business Overview & Revenue Model

Company DescriptionFomento de Construcciones y Contratas (FCC) is a prominent Spanish company specializing in environmental services, water management, infrastructure development, and renewable energy projects. With a strong presence in Europe, Latin America, and the Middle East, FCC focuses on delivering innovative and sustainable solutions across its core sectors, which include urban services, water management, construction, and cement production. The company is recognized for its expertise in managing complex projects and providing essential services that enhance the quality of life in the communities it serves.
How the Company Makes MoneyFCC 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. The company benefits from strong equity and cash generation capabilities, although it faces challenges with operational efficiency and leverage.
Income Statement
82
Very Positive
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
75
Positive
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
68
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.07B8.41B7.71B6.66B6.16B
Gross Profit5.52B5.08B4.80B4.22B4.02B
EBITDA1.49B1.20B1.19B1.37B1.04B
Net Income429.87M589.06M315.18M580.13M262.18M
Balance Sheet
Total Assets14.24B16.72B15.28B14.24B12.83B
Cash, Cash Equivalents and Short-Term Investments2.11B1.86B1.73B1.66B1.45B
Total Debt4.93B5.37B5.37B5.34B4.74B
Total Liabilities10.50B10.57B10.34B9.80B9.93B
Stockholders Equity2.73B4.45B3.39B3.01B2.29B
Cash Flow
Free Cash Flow437.97M-66.05M922.92M358.85M197.14M
Operating Cash Flow1.28B785.38M1.55B746.25M605.07M
Investing Cash Flow-1.30B-1.01B-938.04M193.08M-401.55M
Financing Cash Flow234.72M210.26M-567.20M-627.73M-138.44M

Fomento de Construcciones y Contratas Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.56
Price Trends
50DMA
11.86
Negative
100DMA
11.00
Positive
200DMA
10.03
Positive
Market Momentum
MACD
-0.08
Negative
RSI
48.11
Neutral
STOCH
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:FCC, the sentiment is Positive. The current price of 11.56 is below the 20-day moving average (MA) of 11.66, below the 50-day MA of 11.86, and above the 200-day MA of 10.03, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:FCC.

Fomento de Construcciones y Contratas Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
€32.47B10.1465.54%1.72%7.43%608.14%
73
Outperform
€5.47B11.988.78%4.33%0.50%-26.45%
73
Outperform
€2.81B23.8912.85%5.60%7.52%-31.49%
69
Neutral
€15.74B18.7016.48%1.41%16.50%7.64%
66
Neutral
€4.17B9.2518.29%4.01%3.28%-103.53%
59
Neutral
€449.79M0.73-11.26%10.68%-796.06%
50
Neutral
€1.98B18.38-11.39%35.44%0.46%-212.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:FCC
Fomento de Construcciones y Contratas
11.56
2.71
30.55%
ES:SCYR
Sacyr SA
3.61
0.51
16.46%
ES:OHLA
Obrascon Huarte Lain
0.33
0.04
15.25%
ES:FER
Ferrovial
45.33
8.06
21.61%
ES:ACS
Actividades de Construccion y Servicios SA
60.40
22.66
60.03%
ES:ENO
Elecnor
23.40
9.35
66.56%

Fomento de Construcciones y Contratas Corporate Events

Fomento de Construcciones y Contratas Announces Annual Shareholders’ Meeting
May 9, 2025

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
Apr 30, 2025

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
Apr 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025