Obrascon Huarte Lain (OHLA) AI Stock Analysis

• Market Cap: €624.59M
• Dividend Yield: N/A
• Average Volume (3M): 8.53M
• Price to Earnings (P/E): 0.7
• Beta (1Y): 0.90
• 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: 8,507,972
• 30 Day Avg. Volume: 8,526,920
• 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: €0.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: €0.50 ▲(8.70% Upside)

The overall stock score reflects the company's robust revenue growth and solid cash flow management as positive factors. However, overbought technical indicators and a negative P/E ratio underscore significant challenges in profitability and valuation. Improving operational efficiency and profitability could enhance the company's financial performance.

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 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 demonstrates positive revenue growth and strong cash flow management, despite challenges in profitability impacting net income and return on equity. The balance sheet remains stable with manageable debt levels, suggesting a solid financial foundation with room for improvement in operational efficiency and profitability.

Income Statement

Obrascon Huarte Lain has shown a steady increase in total revenue from 2023 to 2024, with a revenue growth rate of 16.61%. The gross profit margin for 2024 stands at 44.03%, reflecting strong cost management. However, the company faces challenges with profitability, evidenced by a negative net profit margin of -1.37% in 2024. The EBIT and EBITDA margins are modest at 2.02% and 2.62%, respectively, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.13 for 2024, showing a balanced leverage situation. The equity ratio is 14.73%, indicating a moderate level of equity financing. Return on equity is negative at -9.48% due to net losses, highlighting a need for improved profitability. The company maintains substantial cash reserves, providing a cushion against financial volatility.

Cash Flow

Obrascon Huarte Lain has demonstrated strong cash flow management with a free cash flow growth rate of -18.30% from 2023 to 2024. The operating cash flow to net income ratio is favorable at 3.73, indicating efficient cash conversion. The free cash flow to net income ratio is -2.64, suggesting challenges in translating earnings into free cash flow.

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	787.14M
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: Positive
• Last Price: 0.46
• 50DMA: Positive
• 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:OHLA, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.40, and above the 200-day MA of 0.37, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:OHLA.

Obrascon Huarte Lain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRE	75 Outperform	€2.06B	19.40	23.11%	―	25.71%	69.71%
FCC	70 Outperform	€5.26B	22.40	15.73%	4.50%	5.00%	-64.19%
ACS	69 Neutral	€17.67B	20.15	17.55%	2.88%	25.47%	7.63%
ENO	65 Neutral	€2.04B	-21.91	60.45%	34.48%	11.61%	-212.68%
SCYR	64 Neutral	€2.77B	29.98	11.26%	5.68%	2.75%	-42.39%
OHLA	56 Neutral	€624.59M	0.73	-7.07%	―	5.25%	-19.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Obrascon Huarte Lain Corporate Events

Moody’s Downgrades OHLA’s Corporate Rating

Moody’s has downgraded the corporate rating of OHLA and the bond rating of its subsidiary, OHL Operaciones S.A.U., to Caa1 with a stable outlook, from B3 with a stable outlook. This downgrade may impact OHLA’s financial standing and could influence stakeholder confidence and market positioning.