Obrascon Huarte Lain (OHLA) AI Stock Analysis

• Market Cap: €610.08M
• Dividend Yield: N/A
• Average Volume (3M): 9.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 1.39%
• EPS Growth: 72.34%
• Country: ES
• Employees: 8,656
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 1,383,432,300
• 10 Day Avg. Volume: 8,303,119
• 30 Day Avg. Volume: 9,492,597
• PEG Ratio: <0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 1.88
• 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: 43 Neutral
• Price Target: €0.34 ▼(-2.57% Downside)

The overall stock score is primarily impacted by financial performance challenges, including negative profitability and cash flow issues. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages. Valuation concerns are heightened by a negative P/E ratio and lack of dividend yield.

Positive Factors

Global Market Presence

OHLA's global market presence allows it to tap into diverse markets, reducing dependency on any single region and enhancing revenue stability.

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management, which can support profitability as revenue stabilizes or grows.

Improved Leverage

Improved leverage suggests better financial health and reduced risk, providing more flexibility for future investments and operations.

Negative Factors

Negative Profitability

Negative profitability indicates ongoing challenges in cost control or revenue generation, which can hinder long-term financial performance.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests potential liquidity issues, limiting the company's ability to invest in growth opportunities or manage debt.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects volatility in business operations, which can impact long-term planning and investor confidence.

Obrascon Huarte Lain Business Overview & Revenue Model

Company Description

Obrascón Huarte Lain, S.A. engages in the construction and concessions development businesses in the United States, Canada, Mexico, Chile, Peru, Colombia, Spain, Central and Eastern Europe, and internationally. It operates through Construction, Industrial, and Services segments. The company provides civil engineering works and building construction services for public and private-sector customers; and designs, constructs, maintains, and operates industrial plants and systems, including oil and gas, renewable energy, mining and cement, solids engineering, and fire-fighting systems. It also offers property and infrastructure maintenance services for homes and offices, urban green areas, road networks, and social and health services, as well as develops real estate projects, and develops and operates mixed use hotels. The company was formerly known as Sociedad General de Obras y Construcciones Obrascón, S.A. Obrascón Huarte Lain, S.A. was incorporated in 1911 and is headquartered in Madrid, Spain.

How the Company Makes Money

OHLA generates revenue primarily through contracts for construction and engineering projects. The company engages in public and private sector projects, often bidding for large-scale contracts that can span several years. Key revenue streams include construction services, project management fees, and maintenance contracts. Additionally, OHLA may partner with governmental bodies and private enterprises to undertake infrastructure projects, which can lead to joint ventures and collaborative contracts. The company also benefits from its global presence, allowing it to tap into diverse markets and capitalize on various opportunities, thus enhancing its earnings potential.

Obrascon Huarte Lain Financial Statement Overview

Summary

Obrascon Huarte Lain faces several financial challenges. Despite a strong gross profit margin, the company struggles with profitability and revenue growth. The balance sheet shows reduced leverage but negative returns on equity. Cash flow metrics indicate potential liquidity issues with negative free cash flow growth and low cash conversion ratios.

Income Statement

The company shows a mixed performance in its income statement. The gross profit margin is strong at 66.63% for TTM, indicating efficient cost management. However, the net profit margin is negative at -1.25%, reflecting ongoing challenges in achieving profitability. Revenue growth has been inconsistent, with a significant decline of 53.7% in the TTM period, suggesting volatility in revenue streams. EBIT and EBITDA margins are modest, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.72 in the TTM period, indicating a reduction in leverage compared to previous years. However, the return on equity remains negative at -8.62%, highlighting challenges in generating returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows some concerns. Free cash flow growth is negative at -16.07% in the TTM period, indicating potential cash flow constraints. The operating cash flow to net income ratio is low at 0.07, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is relatively better at 0.65, but still indicates challenges in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.62B	3.65B	3.13B	2.87B	2.78B	2.83B
Gross Profit	2.17B	1.61B	1.38B	1.56B	1.27B	1.24B
EBITDA	215.22M	95.58M	176.45M	88.53M	188.96M	1.25M
Net Income	-45.41M	-49.92M	5.52M	-96.84M	5.95M	-151.22M
Balance Sheet
Total Assets	3.31B	3.57B	3.26B	3.19B	3.06B	3.16B
Cash, Cash Equivalents and Short-Term Investments	574.02M	707.37M	611.29M	517.71M	558.44M	502.84M
Total Debt	415.78M	595.29M	588.54M	532.22M	564.39M	803.80M
Total Liabilities	2.73B	3.04B	2.76B	2.64B	2.44B	2.69B
Stockholders Equity	578.53M	526.24M	494.11M	558.40M	624.28M	463.57M
Cash Flow
Free Cash Flow	85.12M	131.52M	160.98M	-26.68M	-30.28M	-17.10M
Operating Cash Flow	119.41M	186.20M	199.60M	11.47M	-633.00K	7.64M
Investing Cash Flow	324.92M	15.53M	-6.32M	123.27M	85.62M	-12.93M
Financing Cash Flow	-1.39B	-128.57M	-43.11M	-185.50M	-63.87M	-59.26M

Obrascon Huarte Lain Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:OHLA, the sentiment is Negative. The current price of 0.35 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.44, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 26.60 is Positive, neither overbought nor oversold. The STOCH value of 31.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:OHLA.

Obrascon Huarte Lain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACS	70 Outperform	€19.06B	21.68	19.75%	2.59%	25.47%	7.63%
FCC	70 Outperform	€5.39B	22.76	5.28%	4.35%	5.00%	-64.19%
SCYR	65 Neutral	€2.98B	32.17	10.80%	5.28%	2.03%	-32.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENO	62 Neutral	€2.44B	―	-6.79%	28.45%	11.61%	-212.68%
TRE	58 Neutral	€2.33B	21.96	24.64%	―	41.87%	55.79%
OHLA	43 Neutral	€610.08M	-8.60	-6.41%	―	1.39%	72.34%