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

Fomento de Construcciones y Contratas (FCC) AI Stock Analysis

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ES

Fomento de Construcciones y Contratas

(BME:FCC)

Rating:65Neutral
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 (FCC) vs. iShares MSCI Spain ETF (EWP)

Fomento de Construcciones y Contratas Business Overview & Revenue Model

Company DescriptionFomento 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 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, 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.70B9.07B8.41B7.71B6.66B6.16B
Gross Profit3.96B5.52B4.96B4.80B4.22B4.02B
EBITDA1.21B1.49B1.39B1.19B1.37B1.04B
Net Income447.15M429.87M590.99M315.18M580.13M262.18M
Balance Sheet
Total Assets18.03B14.24B16.72B15.28B14.24B12.83B
Cash, Cash Equivalents and Short-Term Investments1.74B2.11B1.86B1.73B1.66B1.45B
Total Debt5.00B4.93B5.37B5.37B5.34B4.74B
Total Liabilities11.59B10.50B10.57B10.34B9.80B9.93B
Stockholders Equity4.76B2.73B4.45B3.39B3.01B2.29B
Cash Flow
Free Cash Flow182.97M437.97M-66.05M922.92M358.85M197.14M
Operating Cash Flow1.01B1.28B785.38M1.55B746.25M605.07M
Investing Cash Flow-1.33B-1.30B-1.01B-938.04M193.08M-401.55M
Financing Cash Flow263.63M234.72M210.26M-567.20M-627.73M-138.44M

Fomento de Construcciones y Contratas Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.78
Price Trends
50DMA
11.61
Positive
100DMA
10.84
Positive
200DMA
9.87
Positive
Market Momentum
MACD
0.11
Positive
RSI
46.94
Neutral
STOCH
43.98
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESFCC
65
Neutral
€5.36B12.218.78%4.19%0.50%-26.45%
65
Neutral
$10.75B15.695.29%1.89%3.09%-27.41%
€14.72B17.3316.48%1.40%
€1.86B16.61-11.39%28.44%
€32.23B10.0265.54%1.42%
€462.23M0.73-11.26%
€2.77B23.5012.85%1.27%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:FCC
Fomento de Construcciones y Contratas
11.78
2.48
26.69%
GB:0HAC
Actividades de Construccion y Servicios SA
56.08
18.12
47.73%
GB:0K97
Elecnor
22.05
8.32
60.60%
GB:0P2N
Ferrovial
44.80
8.24
22.54%
GB:0MKG
Obrascon Huarte Lain
0.33
0.04
13.79%
GB:0OFU
Sacyr SA
3.55
0.30
9.23%

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: May 20, 2025