Obrascon Huarte Lain (OHLA) AI Stock Analysis

• Market Cap: €480.88M
• Dividend Yield: N/A
• Average Volume (3M): 9.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• 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: 48 Neutral
• Price Target: €0.36 ▲(3.71% Upside)

The overall stock score of 48 reflects significant challenges in financial performance, technical analysis, and valuation. The company's strong gross profit margin is overshadowed by negative net income and cash flow issues. Technically, the stock is in a bearish trend, with indicators suggesting potential further downside. The negative P/E ratio and lack of dividend yield further weaken the stock's appeal. Improving profitability and cash flow management are crucial for enhancing the stock's outlook.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management, which can support long-term profitability if other financial challenges are addressed.

Improved Leverage Management

Improved leverage management enhances financial stability, reducing risk and potentially lowering interest expenses, which can support future growth.

Global Market Presence

A strong global presence provides opportunities for revenue diversification and reduces dependency on any single market, enhancing resilience against regional downturns.

Negative Factors

Negative Net Income

Negative net income highlights ongoing profitability challenges, which can impact the company's ability to reinvest in growth and meet financial obligations.

Cash Generation Issues

Negative cash flow growth suggests difficulties in generating sufficient cash, which can limit operational flexibility and investment capacity.

Inconsistent Revenue Growth

Inconsistent revenue growth may indicate challenges in market demand or competitive pressures, potentially affecting long-term business expansion.

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 returns on equity are negative. 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	3.57B	3.65B	3.13B	2.87B	2.78B	2.83B
Gross Profit	2.90B	1.61B	1.38B	1.56B	1.27B	1.24B
EBITDA	211.98M	95.58M	176.45M	88.53M	188.96M	1.25M
Net Income	-37.22M	-49.92M	5.52M	-96.84M	5.95M	-151.22M
Balance Sheet
Total Assets	3.32B	3.57B	3.26B	3.19B	3.06B	3.16B
Cash, Cash Equivalents and Short-Term Investments	738.70M	707.37M	611.29M	517.71M	558.44M	502.84M
Total Debt	346.40M	595.29M	588.54M	532.22M	564.39M	803.80M
Total Liabilities	2.76B	3.04B	2.76B	2.64B	2.44B	2.69B
Stockholders Equity	558.10M	526.24M	494.11M	558.40M	624.28M	463.57M
Cash Flow
Free Cash Flow	82.91M	131.52M	160.98M	-26.68M	-30.28M	-17.10M
Operating Cash Flow	137.60M	186.20M	199.60M	11.47M	-633.00K	7.64M
Investing Cash Flow	-36.37M	15.53M	-6.32M	123.27M	85.62M	-12.93M
Financing Cash Flow	-15.67M	-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: Neutral
• STOCH: Positive

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 0.37, below the 50-day MA of 0.41, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 33.66 is Neutral, neither overbought nor oversold. The STOCH value of 15.62 is Positive, 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	€22.13B	25.16	19.75%	2.37%	25.47%	7.63%
FCC	70 Outperform	€5.32B	22.44	5.28%	4.45%	5.00%	-64.19%
SCYR	65 Neutral	€2.97B	29.42	10.80%	5.30%	2.03%	-32.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENO	60 Neutral	€2.04B	-21.96	-6.79%	13.30%	11.61%	-212.68%
TRE	58 Neutral	€2.15B	16.41	24.64%	―	41.87%	55.79%
OHLA	48 Neutral	€480.88M	-12.75	-6.41%	―	1.39%	72.34%