Duro Felguera (MDF) AI Stock Analysis

• Market Cap: €39.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -17.32%
• EPS Growth: -24.27%
• Country: ES
• Employees: 1,496
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.12
• Shares Outstanding: 215,179,430
• 10 Day Avg. Volume: 821,429
• 30 Day Avg. Volume: 1,615,919
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.18
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -0.63
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: €0.00 ▼(-100.00% Downside)

Duro Felguera's overall stock score is primarily impacted by its poor financial performance, characterized by negative equity and cash flow issues. Technical analysis indicates bearish momentum, with the stock trading below key moving averages. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest significant financial and operational challenges.

Positive Factors

Strategic Partnerships

Strategic partnerships expand Duro Felguera's market reach and project portfolio, providing a durable competitive advantage in securing large contracts.

Renewable Energy Focus

Focusing on renewable energy positions Duro Felguera to capitalize on global trends towards sustainable energy, supporting long-term growth.

Revenue from Maintenance Contracts

Recurring revenue from maintenance contracts provides a stable income stream, enhancing cash flow predictability and financial stability.

Negative Factors

Negative Equity

Negative equity indicates insolvency risk, limiting financial flexibility and increasing vulnerability to economic downturns.

Cash Flow Issues

Negative cash flow highlights severe cash management issues, threatening the company's ability to fund operations and invest in growth.

Declining Profit Margins

Declining profit margins suggest operational inefficiencies and increased cost pressures, impacting long-term profitability.

Duro Felguera Business Overview & Revenue Model

Company Description

Duro Felguera, S.A. executes turnkey projects for the energy and industrial sectors in Spain, Latin America, Europe, Africa, the Middle East, Pacific Asia, and internationally. It operates through Conventional Energy, Renewable Energy, Green Hydrogen and Energy Storage, Mining and Handling, Oil and Gas, Heavy Boilermaking, Industrial Plants, Services, Logistics Systems, Epicom, and DF Digital Security segments. The Conventional Energy segment engages in gas turbine power, conventional thermal power plants, biomass, and waste to energy related activities. The Renewable Energy segment executes turnkey projects comprising of photovoltaic, solar thermal plants, and energy recovery projects. The Green Hydrogen and Energy Storage segment provides green hydrogen, energy, and ammonia storage services. The Mining and Handling segment offers gravity, floatation, heap leach, and waste deposit methods. The Oil and Gas segment provides hydrocarbon storage plants, operation, and maintenance related services. The Heavy Boilermaking segment offers FCC units, process units, modular construction, and nuclear components. The Industrial Plants segment develops projects for complex industrial plants in the steel, chemical, pulp, and other sectors. The Services segment provides isolations, start up, operation and maintenance, and other services. The Logistics Systems segment offers consulting and engineering, design, engineering of integral logistics solutions, and after sales services. The Epicom segment provides IP encryptions, secure mobile telephony, offline encryptions, and secure system services. The DF Digital Security segment offers professional services and solutions. Duro Felguera, S.A. was founded in 1858 and is headquartered in Gijón, Spain.

How the Company Makes Money

Duro Felguera generates revenue primarily through contracts for engineering and construction services, often on a project basis. Key revenue streams include engineering services, procurement, and construction management for large projects, particularly in the energy sector, such as power plants and renewable energy installations. The company also earns income from maintenance contracts and operational services for existing facilities. Strategic partnerships with other firms and public sector entities enhance its project portfolio and market reach, contributing significantly to its earnings.

Duro Felguera Financial Statement Overview

Summary

Duro Felguera faces substantial financial challenges across all financial statements. The company struggles with profitability, cash flow management, and a weak balance sheet characterized by negative equity. These factors suggest a critical need for strategic financial restructuring to stabilize its financial health.

Income Statement

The company's income statement shows significant challenges with consistent net losses over the years. Gross profit margins have been declining, from 34.81% in 2023 to 33.97% in 2024. Revenue growth was modest at 1.71% in the latest year. Both EBIT and EBITDA margins are negative, indicating operational difficulties. The net profit margin is also negative, reflecting substantial losses.

Balance Sheet

Duro Felguera's balance sheet reveals high financial risk. The equity is negative, and the debt-to-equity ratio cannot be calculated due to negative equity, indicating insolvency risk. The equity ratio is also negative at -125.10% in 2024. The company has reduced its debt, but overall, the financial position remains weak.

Cash Flow

Cash flow analysis indicates severe cash management issues. The operating cash flow is consistently negative, with free cash flow worsening from -27.38 million in 2023 to -77.34 million in 2024. The operating cash flow to net income ratio is negative, highlighting the company's inability to generate cash from operations. Free cash flow to net income ratio is also negative, implying insufficient cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.64M	286.01M	281.20M	117.19M	84.47M	133.14M
Gross Profit	42.33M	97.18M	119.43M	72.61M	59.14M	68.06M
EBITDA	-75.87M	-83.42M	-10.59M	-3.62M	29.14M	-158.29M
Net Income	-98.06M	-98.37M	-21.89M	5.01M	22.61M	-171.64M
Balance Sheet
Total Assets	171.84M	215.90M	328.73M	233.46M	292.07M	246.47M
Cash, Cash Equivalents and Short-Term Investments	24.35M	36.61M	133.32M	53.51M	120.09M	64.04M
Total Debt	165.73M	138.40M	69.86M	34.14M	42.45M	89.72M
Total Liabilities	460.16M	485.18M	484.26M	375.39M	429.94M	393.27M
Stockholders Equity	-289.11M	-270.02M	-156.26M	-142.57M	-138.41M	-147.27M
Cash Flow
Free Cash Flow	-25.94M	-77.34M	-27.38M	-61.49M	-65.21M	-68.11M
Operating Cash Flow	-26.01M	-76.56M	-26.96M	-61.49M	-64.70M	-67.38M
Investing Cash Flow	2.08M	-5.95M	23.89M	8.55M	14.37M	-28.56M
Financing Cash Flow	-1.83M	-1.89M	88.87M	-11.50M	113.98M	-1.30M

Duro Felguera Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:MDF, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.22, and below the 200-day MA of 0.24, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 28.06 is Positive, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:MDF.

Duro Felguera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSJ	76 Outperform	€496.15M	13.48	17.08%	1.89%	3.23%	12.32%
TUB	65 Neutral	€384.18M	12.59	11.13%	6.29%	-10.37%	38.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TRE	58 Neutral	€2.17B	16.59	24.64%	―	41.87%	55.79%
OHLA	48 Neutral	€481.57M	-12.75	-6.41%	―	1.39%	72.34%
TLGO	48 Neutral	€341.96M	-1.90	-92.71%	―	-16.41%	-952.46%
MDF	39 Underperform	€39.29M	-0.40	―	―	-17.32%	-24.27%