Bouygues (EN) AI Stock Analysis

• Market Cap: €19.96B
• Dividend Yield: 4.51%
• Average Volume (3M): 760.32K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.95
• Revenue Growth: 0.88%
• EPS Growth: -2.06%
• Country: FR
• Employees: 200,862
• Sector: General
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.85
• Shares Outstanding: 385,323,640
• 10 Day Avg. Volume: 923,054
• 30 Day Avg. Volume: 760,316
• PEG Ratio: 2.47
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 6.48
• 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: €48.70
• Price Target Upside: -7.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.39
• Revenue Forecast (FY): €57.82B

• Rating: 64 Neutral
• Price Target: €56.00 ▲(6.30% Upside)
• Action: Downgraded Date: 03/01/26
• Date: Action: Downgraded 03/01/26

The score is driven primarily by mid-tier financial quality: solid operating cash generation and steady (but modest) profitability are offset by the sharp 2025 revenue decline in the provided data and a multi-year rise in leverage. Technically, the trend is positive with price above major moving averages, but overbought readings raise pullback risk. Valuation is reasonable with a supportive ~3.8% dividend yield, but not compellingly low on earnings.

Positive Factors

Diversified business model

Bouygues' three-division structure (construction, real estate, telecom) provides durable revenue diversification. Recurring telecom subscriptions temper cyclicality in project-led construction and property sales, improving cash predictability and strategic flexibility over multiple cycles.

Solid operating cash generation

Consistently strong operating cash flow supports capital spending, dividend policy and cyclical resilience. Positive free cash flow in most years gives the company ability to fund operations, invest in telecom capex and service debt without relying solely on capital markets.

Stable returns on equity

Mid-single to ~10% ROE suggests competent capital allocation and sustained profitability across divisions. While not outsized, stable ROE supports steady reinvestment and dividend capacity, indicating long-term operational competence and predictable shareholder returns.

Negative Factors

Sharp 2025 revenue decline

A pronounced 2025 revenue drop undermines revenue visibility and could signal weaker project backlog or real estate sales. Reduced top-line scale compresses operating leverage, risks margin dilution, and limits the company's ability to cover fixed costs and fund strategic programs.

Rising leverage

Meaningful increase in leverage to ~1.38x reduces financial flexibility and raises refinancing and interest-rate risk. Higher debt constrains bidding capacity for large public projects, limits room for opportunistic M&A or buybacks, and amplifies downside in slower revenue periods.

Low and pressured margins

Structurally low net and operating margins leave limited buffers against cost inflation or project overruns. The 2025 gross-margin step-down, if sustained, would weaken earnings quality and free cash flow conversion, restricting reinvestment and debt-reduction capacity over the medium term.

Bouygues Business Overview & Revenue Model

Company Description

Bouygues SA, together with its subsidiaries, operates in the construction, telecom, and media sectors in France and internationally. The company designs, builds, renovates, operates, and deconstructs building, infrastructure, and industrial projects; develops urban planning, residential, and commercial projects; constructs and maintains roads and motorways, airport runways, ports, industrial logistics and commercial hubs, urban roads and amenities, external works, reserved-lane public transport facilities, leisure facilities, and environmental amenities, as well as undertakes civil engineering activities; produces and recycles construction materials; and distributes bitumen. It also engages in the construction, renewal, and maintenance of rail networks; fitting of road safety and signaling equipment; and laying and maintenance of pipes and pipelines. In addition, the company produces TF1, TMC, TFX, TF1, and LCI complementary TV channels; operates TV Breizh, Histoire, Ushuaïa, and Serieclub channels; produces, broadcasts, and distributes content; produces cinemas; operates la seine musicale entertainment and concert venue; and licenses, publishes, and boards games, as well as musical and events. Further, it offers telecom services; mobile and fixed Internet services; and Bbox Miami, an Android box for TV. Bouygues SA was founded in 1952 and is based in Paris, France.

How the Company Makes Money

Bouygues generates revenue through several key streams across its divisions. In the construction sector, the company earns money by undertaking large-scale infrastructure projects, such as roads, bridges, and buildings, often funded by public and private contracts. Bouygues Immobilier generates income through the sale and leasing of residential and commercial properties, capitalizing on the real estate market's demand for new developments. Bouygues Telecom contributes significantly to the company's earnings through subscription services for mobile and fixed-line telecommunications, including internet and television services. Partnerships with local governments and public institutions for construction projects, as well as collaborations with technology providers in telecommunications, further enhance its revenue potential. The company’s diversified portfolio allows it to mitigate risks and capitalize on growth opportunities in various markets.

Bouygues Financial Statement Overview

Summary

Operating cash flow is consistently solid and margins are steady but modest; however, the provided data shows a sharp 2025 revenue drop and leverage has risen meaningfully (debt-to-equity ~1.38x), which increases near-term risk and reduces financial flexibility.

Income Statement

Revenue expanded strongly from 2020–2024, but 2025 shows a sharp decline in reported revenue, creating a clear near-term growth risk. Profitability is modest for the sector: net margin is generally around ~2% and has held fairly steady, while operating margin sits in the ~4–5% range. A key watch-out is the 2025 step-down in gross margin versus prior years, which, if sustained, would pressure earnings quality even if operating profit remains positive.

Balance Sheet

Leverage has increased meaningfully: debt-to-equity rose from below 1x (2020–2021) to above 1x in recent years, reaching ~1.38x in 2025, reducing balance sheet flexibility. Equity has grown, but debt has grown faster, and returns on equity are stable but only mid-single to ~10% (roughly ~8–10% historically). Overall, the balance sheet is workable, but the trend in leverage is a growing constraint.

Cash Flow

Operating cash flow is consistently solid (roughly €3.0–€5.4B annually), supporting the business through cycles. Free cash flow is positive in most years and improved notably after 2022, but it remains volatile (large swings in growth and a 2025 decline versus 2024). Cash conversion is mixed: free cash flow is only about half of net income in 2025 (and ~63% in 2024), suggesting working-capital or investment demands can meaningfully impact cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	56.88B	56.75B	56.06B	44.32B	37.59B
Gross Profit	3.14B	31.32B	30.04B	25.01B	20.85B
EBITDA	2.65B	4.52B	5.23B	4.67B	4.38B
Net Income	1.21B	1.06B	1.04B	973.00M	1.13B
Balance Sheet
Total Assets	64.12B	63.08B	60.75B	60.59B	44.64B
Cash, Cash Equivalents and Short-Term Investments	7.54B	5.57B	5.55B	5.74B	6.50B
Total Debt	18.02B	14.74B	14.83B	15.97B	9.31B
Total Liabilities	49.27B	48.57B	46.63B	46.66B	31.85B
Stockholders Equity	13.04B	12.70B	12.41B	12.21B	11.14B
Cash Flow
Free Cash Flow	2.63B	3.39B	2.71B	248.00M	1.04B
Operating Cash Flow	5.13B	5.38B	5.34B	2.98B	3.58B
Investing Cash Flow	-1.98B	-3.48B	-2.33B	-8.63B	-1.24B
Financing Cash Flow	-1.32B	-2.07B	-3.40B	4.85B	-284.00M

Bouygues Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EN, the sentiment is Positive. The current price of 52.68 is above the 20-day moving average (MA) of 49.65, above the 50-day MA of 46.87, and above the 200-day MA of 41.04, indicating a bullish trend. The MACD of 1.69 indicates Negative momentum. The RSI at 80.65 is Negative, neither overbought nor oversold. The STOCH value of 90.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:EN.

Bouygues Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DG	73 Outperform	€77.25B	16.08	16.66%	3.96%	3.21%	4.24%
FGR	69 Neutral	€14.10B	13.28	14.39%	3.87%	7.71%	-2.82%
EN	64 Neutral	€19.96B	17.80	8.45%	4.51%	0.88%	-2.06%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
BOL	48 Neutral	€13.47B	145.76	―	1.73%	―	―
RNO	48 Neutral	€8.83B	-0.76	-46.54%	6.19%	8.44%	-937.75%