Fomento de Construcciones y Contratas (FCC) AI Stock Analysis

• Market Cap: €5.40B
• Dividend Yield: 4.34%
• Average Volume (3M): 19.28K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.74
• Revenue Growth: 5.00%
• EPS Growth: -64.19%
• Country: ES
• Employees: 61,791
• Sector: Services
• Sector Strength: N/A
• Industry: Waste Management
• EPS (TTM): N/A
• Shares Outstanding: 472,994,050
• 10 Day Avg. Volume: 25,722
• 30 Day Avg. Volume: 19,279
• PEG Ratio: -0.27
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 13.18
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: €12.50 ▲(8.51% Upside)

Fomento de Construcciones y Contratas scores well due to its solid financial performance with consistent revenue growth and profitability. The technical analysis suggests a stable trend with potential for upward movement, while the valuation metrics indicate a balanced risk-reward profile. The absence of earnings call and corporate events data did not impact the overall score.

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 primarily through multiple key streams, including public works contracts, infrastructure projects, and environmental services. The company undertakes large-scale construction and engineering projects for government entities and private clients, which often involve significant funding and investment. In addition, FCC's environmental division, which encompasses waste management and water treatment services, contributes substantially to its earnings through long-term contracts with municipalities and private companies. Strategic partnerships with local governments and other stakeholders enhance its project pipeline and support its revenue generation. Furthermore, FCC benefits from its commitment to sustainability and innovation, allowing it to capture a growing market share in the green technology and waste recycling sectors, effectively positioning itself in a competitive industry landscape.

Fomento de Construcciones y Contratas Financial Statement Overview

Summary

Fomento de Construcciones y Contratas demonstrates strong financial performance with consistent revenue growth and profitability. However, operational challenges and high leverage due to significant debt levels pose risks. The company benefits from strong equity and cash generation capabilities but needs to manage debt and capital expenditures better.

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	9.57B	9.07B	8.41B	7.71B	6.66B	6.16B
Gross Profit	5.82B	5.41B	5.08B	4.91B	4.30B	4.02B
EBITDA	1.28B	1.49B	1.20B	1.19B	1.37B	1.04B
Net Income	230.92M	429.87M	589.06M	315.18M	580.13M	262.18M
Balance Sheet
Total Assets	14.20B	14.24B	16.72B	15.28B	14.24B	12.83B
Cash, Cash Equivalents and Short-Term Investments	2.01B	2.11B	1.86B	1.79B	1.66B	1.39B
Total Debt	5.05B	5.54B	5.37B	5.37B	5.34B	4.64B
Total Liabilities	10.55B	10.50B	10.57B	10.34B	9.80B	9.93B
Stockholders Equity	2.71B	2.73B	4.45B	3.39B	3.01B	2.29B
Cash Flow
Free Cash Flow	419.21M	437.97M	-66.05M	922.92M	358.85M	197.14M
Operating Cash Flow	1.22B	1.28B	785.38M	1.55B	746.25M	605.07M
Investing Cash Flow	-862.44M	-1.30B	-962.44M	-938.04M	193.08M	-401.55M
Financing Cash Flow	154.03M	234.72M	210.26M	-567.20M	-627.73M	-138.44M

Fomento de Construcciones y Contratas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 11.52 is above the 20-day moving average (MA) of 11.28, above the 50-day MA of 11.15, and above the 200-day MA of 10.81, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 78.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FER	―	€38.73B	11.58	69.30%	1.43%	5.75%	346.20%
FCC	―	€5.40B	22.80	5.28%	4.34%	5.00%	-64.19%
SCYR	―	€3.07B	33.18	9.65%	5.14%	2.75%	-42.39%
ACS	―	€18.78B	21.35	19.75%	2.76%	25.47%	7.63%
ENO	―	€2.38B	―	-6.79%	29.20%	11.61%	-212.68%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
OHLA	―	€654.30M	0.73	-7.07%	―	5.25%	-19.03%

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.