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: 5.25%
• EPS Growth: -19.03%
• 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: 41 Neutral
• Price Target: €0.50 ▲(19.05% Upside)

Obrascon Huarte Lain's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant financial challenges, including negative profitability and cash flow issues. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively contribute to a low overall stock score.

Obrascon Huarte Lain Business Overview & Revenue Model

Company Description

Obrascon Huarte Lain (OHLA) is a leading international construction and engineering company based in Spain, specializing in the development and management of large-scale infrastructure projects. The company operates in various sectors, including civil engineering, building construction, and industrial projects, as well as providing services in urban infrastructure development and environmental solutions. OHLA is known for its commitment to quality and innovation, delivering essential services such as transportation, water management, and energy projects across Europe, Latin America, and the United States.

How the Company Makes Money

OHLA generates revenue primarily through the execution of construction contracts and projects in the public and private sectors. The company's revenue model includes bidding for and winning contracts for infrastructure projects, which can range from highways and bridges to urban development and public buildings. Key revenue streams come from civil engineering, building projects, and concessions, where OHLA builds and then operates infrastructure for a specified period. Additionally, OHLA often engages in partnerships with government entities and private firms, enabling them to secure larger contracts and share resources, thus enhancing their earning potential. The company also benefits from long-term maintenance contracts and service agreements, further diversifying its revenue sources.

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: Neutral
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:OHLA, the sentiment is Neutral. The current price of 0.42 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.44, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:OHLA.

Obrascon Huarte Lain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCC	70 Outperform	€5.39B	22.76	5.28%	4.44%	5.00%	-64.19%
TRE	69 Neutral	€2.33B	21.96	24.64%	―	41.87%	55.79%
SCYR	65 Neutral	€2.98B	32.17	10.80%	5.35%	2.03%	-32.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENO	62 Neutral	€2.42B	―	-6.79%	29.57%	11.61%	-212.68%
ACS	61 Neutral	€19.06B	21.68	19.75%	2.57%	25.47%	7.63%
OHLA	41 Neutral	€610.08M	-8.60	-7.07%	―	5.25%	-19.03%