Obrascon Huarte Lain (OHLA) AI Stock Analysis

• Market Cap: €461.54M
• Dividend Yield: N/A
• Average Volume (3M): 9.72M
• Price to Earnings (P/E): 0.7
• Beta (1Y): 0.72
• Revenue Growth: 10.68%
• EPS Growth: -796.06%
• Country: ES
• Employees: 8,656
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): -0.02
• Shares Outstanding: 1,383,432,300
• 10 Day Avg. Volume: 9,537,948
• 30 Day Avg. Volume: 9,717,660
• PEG Ratio: <0.01
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.88
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: €0.50 ▲(51.52%Upside)

The stock's score is influenced primarily by its strong revenue growth and stable balance sheet. However, challenges in profitability and valuation, combined with mixed technical signals, moderate the overall assessment.

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 makes money primarily through its construction and development activities across multiple sectors. The company's revenue streams include contracts for large-scale infrastructure projects, public and private partnerships, and long-term concessions to manage and operate infrastructure assets. By leveraging its expertise in engineering and project management, OHLA secures contracts for building roads, railways, and public facilities. Additionally, the company engages in industrial projects and provides facility management services, further contributing to its income. Strategic partnerships and collaborations also play a significant role in enhancing OHLA's market presence and financial performance.

Obrascon Huarte Lain Financial Statement Overview

Summary

Obrascon Huarte Lain shows positive revenue growth and strong cash flow management, with challenges in profitability impacting net income and return on equity. The balance sheet remains stable with a manageable debt level. Focusing on improving operational efficiency and profitability could enhance the company's financial performance moving forward.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.65B	3.13B	3.26B	2.78B	2.83B
Gross Profit	1.61B	1.38B	1.56B	1.27B	1.24B
EBITDA	95.58M	176.45M	88.53M	188.96M	1.25M
Net Income	-49.92M	5.52M	-96.84M	5.95M	-151.22M
Balance Sheet
Total Assets	3.57B	3.26B	3.19B	3.06B	3.16B
Cash, Cash Equivalents and Short-Term Investments	676.35M	611.29M	504.35M	545.08M	502.84M
Total Debt	595.29M	588.54M	532.22M	564.39M	787.14M
Total Liabilities	3.04B	2.76B	2.64B	2.44B	2.69B
Stockholders Equity	526.24M	494.11M	558.40M	624.28M	463.57M
Cash Flow
Free Cash Flow	131.52M	160.98M	-26.68M	-30.28M	-17.10M
Operating Cash Flow	186.20M	199.60M	11.47M	-633.00K	7.64M
Investing Cash Flow	15.53M	-33.21M	123.27M	85.62M	-12.93M
Financing Cash Flow	-128.57M	-43.11M	-185.50M	-63.87M	-59.26M

Obrascon Huarte Lain Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.33 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.31, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 92.31 is Negative, 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
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
OHLA	61 Neutral	€461.54M	0.73	-11.26%	―	10.68%	-796.06%
0HAC		€14.83B	17.56	16.48%	1.39%	―	―
0K97		€1.82B	16.61	-11.39%	28.40%	―	―
0HAA		€5.47B	12.52	8.78%	4.16%	―	―
0OFU		€2.78B	23.50	12.85%	1.26%	―	―
0MKT		€1.55B	16.39	17.19%	―	―	―

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.

Obrascon Huarte Lain Announces Online Shareholders Meeting for June 2025

Obrascon Huarte Lain, S.A. has announced an Ordinary General Meeting of Shareholders to be held online on June 26 and 27, 2025. The agenda includes approval of financial statements for 2024, re-election of auditors and directors, and discussions on directors’ remuneration and company recapitalization. This meeting is crucial for addressing financial strategies and governance, impacting stakeholders by shaping the company’s future operational and financial directions.