Grupo Empresarial San Jose, S.A. (GSJ) AI Stock Analysis

• Market Cap: €524.76M
• Dividend Yield: 1.89%
• Average Volume (3M): 60.76K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.75
• Revenue Growth: 3.23%
• EPS Growth: 12.32%
• Country: ES
• Employees: 3,856
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.20
• Shares Outstanding: 65,026,085
• 10 Day Avg. Volume: 115,408
• 30 Day Avg. Volume: 60,758
• PEG Ratio: 0.63
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 2.93
• 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
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): €1.64B

• Rating: 70 Outperform
• Price Target: €9.00 ▲(14.65% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven primarily by solid financial performance—strong recent free cash flow and a de-risked balance sheet—partly offset by meaningful 2025 gross margin compression. Technicals are mixed with near-term weakness (below shorter-term averages and low RSI/Stoch), while valuation looks reasonable with a moderate P/E and modest dividend yield.

Positive Factors

Strong free cash flow generation

Sustained high free cash flow in 2024–2025 that closely tracks net income indicates durable cash conversion. This supports reinvestment, dividend capacity and balance-sheet strengthening over the medium term, improving financial flexibility for project funding and strategic choices.

Conservative leverage, improving ROE

A materially de-risked capital structure and rising ROE reduce funding strain and credit risk. Lower leverage plus equity growth increases resilience to project cycles, enabling the company to pursue bidding and investment while maintaining capacity to absorb setbacks.

Meaningful revenue scale expansion

Robust top-line growth over multiple years signals improved market share and project activity. Greater scale can enhance bidding competitiveness and fixed-cost absorption, providing a structural platform to improve margins and sustain earnings growth if project mix remains favorable.

Negative Factors

Sharp gross margin compression (2025)

A nearly 12-point drop in gross margin is a structural red flag: it may reflect adverse mix, pricing pressure, or persistent cost inflation. If sustained, lower gross margins reduce operational leverage and long-term profitability, constraining reinvestment and shareholder returns.

Very thin net margins

Net margins near mid-single digits leave little buffer against cost overruns or project delays common in construction. Persistent thin profitability limits internal funding for growth, heightens sensitivity to input-price swings and increases reliance on tight project execution.

Historical leverage and cash variability

Prior swings in leverage and working-capital-driven capital needs indicate financing needs can re-emerge under certain project cycles. This variability raises the risk that strong recent metrics could reverse, forcing external funding or margin compression in downturns.

Grupo Empresarial San Jose, S.A. Business Overview & Revenue Model

Company Description

Grupo Empresarial San José, S.A. engages in construction business in Spain and internationally. It constructs hospitals, buildings and facilities, energy power plants, and infrastructure projects, as well as conserves parks and gardens; and undertakes civil, and engineering and industrial construction works. The company also researches and develops energy efficiency and renewable energy projects; and provides consultancy and project management services for the architecture, civil engineering/infrastructure, real estate management, technology, and sustainable development projects. In addition, it engages in agriculture and cattle businesses; and distributes sport and fashion clothes under the Arena, Teva, Hoka, Diadora, Hunter, Fred Perry clothing, and Dr. Martens brands. The company was formerly known as Udra S.A. and changed its name to Grupo Empresarial San José, S.A. in June 2008. Grupo Empresarial San José, S.A. was founded in 1962 and is headquartered in Madrid, Spain.

How the Company Makes Money

GSJ generates revenue through multiple streams, including contract work in construction and infrastructure development for government and private sector clients. The company typically earns money by securing contracts for large-scale projects, which may include road construction, building facilities, and urban development initiatives. Additionally, GSJ may engage in real estate development, generating profits through the sale or lease of residential and commercial properties. Strategic partnerships with governmental bodies and other corporations enhance its project pipeline, while a focus on sustainability may open up opportunities for specialized funding or incentives. Overall, the combination of diverse project engagements and strategic collaborations contributes significantly to GSJ's earnings.

Grupo Empresarial San Jose, S.A. Financial Statement Overview

Summary

Strong revenue growth over 2022–2025 and standout recent free cash flow support earnings quality. Balance sheet leverage is conservative with improving ROE, reducing financial risk. The key drag is the sharp 2025 gross margin compression versus 2024, which raises concern about margin durability in a thin-margin industry.

Income Statement

Revenue has expanded strongly over the 2022–2025 period (from ~€1.09B to ~€1.59B), indicating improving scale and project activity. Profitability is positive but thin, with net margin still low (about 2.5% in 2025), which is typical for construction but leaves limited buffer if project costs rise. A key concern is the sharp drop in gross margin in 2025 versus 2024 (from ~25% to ~13%), signaling potential mix shift, pricing pressure, or cost inflation, even though operating and net profit dollars improved.

Balance Sheet

Leverage is conservative in recent years, with debt-to-equity improving materially from elevated levels in 2020–2021 to low levels in 2022–2025, which reduces financial risk. Equity has grown (supporting balance-sheet resilience), and returns on equity are solid and improving (roughly 11% in 2023 to ~16% in 2025). The main watch item is the historical volatility in leverage (high in 2020–2021), which suggests the capital structure can swing depending on working-capital needs and project cycle.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow are strong in 2024–2025 (free cash flow of ~€116M and ~€167M, respectively). Free cash flow tracks net income closely (around ~95–96% in 2023–2025), supporting earnings quality and indicating profits are translating into cash. A risk to monitor is variability over time (notably weaker cash generation in 2021–2022 versus the step-up in 2023–2025), which can occur in this industry due to project timing and working-capital swings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.56B	1.59B	1.56B	1.34B	1.09B	927.69M
Gross Profit	361.42M	210.37M	393.55M	355.44M	319.21M	269.81M
EBITDA	90.01M	76.58M	69.12M	51.32M	43.59M	41.71M
Net Income	26.58M	39.85M	33.02M	19.94M	16.61M	12.10M
Balance Sheet
Total Assets	1.33B	1.43B	1.30B	1.14B	978.66M	933.07M
Cash, Cash Equivalents and Short-Term Investments	522.90M	638.55M	490.70M	411.68M	328.47M	313.92M
Total Debt	12.44M	29.30M	19.22M	17.93M	13.60M	114.23M
Total Liabilities	1.08B	1.14B	1.05B	919.56M	772.11M	750.93M
Stockholders Equity	214.34M	247.92M	218.22M	181.38M	174.44M	151.66M
Cash Flow
Free Cash Flow	0.00	167.18M	116.46M	97.87M	25.23M	24.41M
Operating Cash Flow	0.00	174.10M	122.41M	103.38M	31.61M	30.88M
Investing Cash Flow	0.00	-28.14M	-30.42M	22.41M	-12.09M	38.41M
Financing Cash Flow	0.00	-1.90M	-15.52M	-18.18M	-10.98M	-58.40M

Grupo Empresarial San Jose, S.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.85
• 50DMA: Negative
• 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:GSJ, the sentiment is Negative. The current price of 7.85 is below the 20-day moving average (MA) of 8.83, below the 50-day MA of 8.45, and above the 200-day MA of 7.22, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 34.65 is Neutral, neither overbought nor oversold. The STOCH value of 27.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:GSJ.

Grupo Empresarial San Jose, S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSJ	70 Outperform	€524.76M	12.27	17.08%	1.89%	3.23%	12.32%
FER	69 Neutral	€39.70B	44.79	69.30%	1.42%	5.75%	346.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TRE	59 Neutral	€2.22B	10.84	24.64%	―	41.87%	55.79%
FCC	55 Neutral	€5.08B	―	5.28%	4.49%	5.00%	-64.19%
SCYR	53 Neutral	€3.24B	32.80	8.86%	5.28%	2.03%	-32.59%
OHLA	51 Neutral	€568.87M	297.92	0.29%	―	1.39%	72.34%