Eiffage (FGR) AI Stock Analysis

• Market Cap: €12.43B
• Dividend Yield: 3.87%
• Average Volume (3M): 220.41K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.12
• Revenue Growth: 7.71%
• EPS Growth: -2.82%
• Country: FR
• Employees: 84,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 7.51
• Shares Outstanding: 98,000,000
• 10 Day Avg. Volume: 225,197
• 30 Day Avg. Volume: 220,408
• PEG Ratio: -20.51
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 4.03
• 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: €160.20
• Price Target Upside: 24.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 11.38
• Revenue Forecast (FY): €26.18B

• Rating: 69 Neutral
• Price Target: €140.00 ▲(9.12% Upside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is driven primarily by solid financial performance (steady growth and durable cash generation) offset by high leverage. Valuation is supportive with a moderate P/E and solid dividend yield, while technicals show a strong trend but are currently overextended on momentum indicators.

Positive Factors

Diversified business model

Eiffage's mix of contracting, recurring energy-services and long-term concession cash flows reduces revenue concentration risk. Concessions generate multi-year user/availability cash, services provide recurring maintenance income, and contracting expands scale and cross-sell opportunities.

Consistent revenue growth & stable margins

Steady top-line expansion with mid-teens EBITDA and ~10% EBIT margins indicates structural operating resilience. Predictable margins support investment and dividends, and steady revenue growth helps sustain backlog conversion into cash across project cycles.

Durable free cash flow generation

Consistently strong free cash flow (a high share of net income) underpins the firm's ability to fund concessions, service debt, and invest in capex or maintenance. Even with a 2025 soft patch, sustained FCF supports long-term financial commitments and strategic flexibility.

Negative Factors

Elevated leverage

A debt-heavy capital structure materially reduces financial flexibility and increases refinancing and interest-rate sensitivity. High leverage constrains ability to absorb project overruns or downturns, making operations more vulnerable to cyclical revenue shocks and higher funding costs.

Modest net profit margins

Thin net margins limit the buffer against cost inflation, project delays, or claims. In engineering & construction, narrow net profitability heightens sensitivity to execution issues and input-cost volatility, reducing retained earnings for reinvestment or debt reduction.

Execution and cyclical contract risk

Heavy reliance on public and private tenders and fixed-price contracts exposes Eiffage to cyclical demand and execution risk. Cost overruns, scheduling problems or weak bid discipline can erode margins and cash flow, making performance dependent on consistent project management.

Eiffage Business Overview & Revenue Model

Company Description

Eiffage SA engages in the construction, infrastructure, energy systems, and concessions businesses in France and internationally. The company's Construction segment offers urban development, building design and construction, property development, and maintenance and facilities management services for public and private-sector customers. Its Infrastructure segment is involved in the civil engineering, road and rail design and construction, drainage, earthworks, and metallic construction. The company's Energy Systems segment designs, constructs, integrates, operates, and maintains of energy and telecommunication systems and installations. Its Concessions segment finances, designs, builds, maintains, and services motorways and other large infrastructure projects, public facilities, and buildings and urban developments, as well as operates toll structures under concessions and public-private partnerships. The company was incorporated in 1920 and is headquartered in Vélizy-Villacoublay, France.

How the Company Makes Money

Eiffage makes money primarily by (1) executing contracted construction and civil engineering works, (2) delivering recurring energy-systems and technical-services activity, and (3) earning long-term concession revenue from operating infrastructure assets. 1) Contracting revenue (Construction & Civil Engineering): A significant portion of Eiffage’s revenue comes from winning projects via tenders or negotiated contracts with public-sector clients (e.g., municipalities, government agencies) and private clients (e.g., developers, industrial companies). Revenue is recognized as projects progress based on contractual terms (typically measured through work performed). Profitability depends on bid discipline, cost control (labor, materials, subcontractors), change orders/claims, project scheduling, and risk management on complex builds. 2) Energy systems and services (Eiffage Énergie Systèmes): Eiffage generates revenue from installation, integration, and maintenance of electrical systems, industrial solutions, and HVAC/energy-efficiency services for buildings and industrial sites. This business can include both project-based work (design-and-build or retrofit contracts) and more recurring revenue from maintenance, multi-year service agreements, and ongoing facility/industrial support. 3) Concessions (e.g., toll motorways and related infrastructure): Eiffage earns revenue from operating concession assets under long-term contracts. The core model is user-pay revenue (such as tolls) and/or availability/contractual payments depending on the concession structure (if applicable). Concession businesses typically produce cash flows over many years, offset by operating costs, lifecycle maintenance, and the financing structure used to build/acquire the asset. 4) Factors influencing earnings and cash generation: Key contributors include backlog (visibility for contracting), traffic/usage levels on concession assets (for user-pay models), the mix of fixed-price vs. reimbursable contracts, execution performance and claims management, input-cost inflation and pass-through mechanisms, and the cost of financing for concession investments. Partnerships commonly arise through consortia/joint ventures for large projects and concession bids; however, specific partnership details are null.

Eiffage Financial Statement Overview

Summary

Steady revenue growth and stable mid-teens EBITDA margins support operating resilience, and free cash flow is consistently positive with decent earnings backing. The main drag is elevated leverage (high debt-to-equity), plus a 2025 slowdown in free cash flow growth, which increases risk in a cyclical industry.

Income Statement

Revenue has grown steadily from 2021–2025, with 2025 revenue up ~4.8% year over year, supporting a constructive top-line trajectory. Profitability is stable for the sector, with EBITDA margin consistently around the mid-teens and EBIT margin near ~10%, though net profit margin remains modest (~4%) and slightly lower in 2025 versus 2024. Overall, the income statement shows consistent operating performance, but limited net margin expansion.

Balance Sheet

Leverage is the key constraint: debt-to-equity remains elevated (roughly ~2.2–2.8x across 2021–2025), which reduces financial flexibility even as equity has grown. Returns on equity are solid (mid-teens in most years, ~13.6% in 2025), indicating the company is generating reasonable profits on shareholder capital. Net-net: good returns, but a debt-heavy capital structure increases risk if operating conditions weaken.

Cash Flow

Cash generation is a clear strength: free cash flow is consistently positive and substantial, and free cash flow is well-supported by earnings (free cash flow running at ~66%–85% of net income over 2021–2025). However, free cash flow growth turned negative in 2025 (about -5.8%), and operating cash flow has not been keeping pace with total debt levels, implying ongoing reliance on sustained cash generation and refinancing conditions. Overall cash flow quality is good, with a recent soft patch in growth.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.12B	24.02B	22.37B	20.87B	19.20B
Gross Profit	3.38B	20.07B	18.42B	2.65B	2.27B
EBITDA	4.20B	4.05B	3.86B	3.41B	3.08B
Net Income	1.02B	1.04B	1.01B	896.00M	753.00M
Balance Sheet
Total Assets	40.93B	40.31B	37.83B	36.20B	33.70B
Cash, Cash Equivalents and Short-Term Investments	5.95B	6.10B	5.01B	4.82B	4.87B
Total Debt	16.77B	16.70B	15.98B	15.94B	15.32B
Total Liabilities	32.04B	32.15B	29.88B	28.77B	26.98B
Stockholders Equity	7.50B	6.72B	6.46B	6.18B	5.49B
Cash Flow
Free Cash Flow	2.82B	3.16B	2.46B	1.96B	1.70B
Operating Cash Flow	3.47B	3.71B	3.32B	2.95B	2.70B
Investing Cash Flow	-2.01B	-1.51B	-1.22B	-2.34B	-1.10B
Financing Cash Flow	-1.64B	-1.07B	-1.90B	-715.00M	-1.95B

Eiffage Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 128.30
• 50DMA: Negative
• 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 FR:FGR, the sentiment is Neutral. The current price of 128.3 is below the 20-day moving average (MA) of 137.92, below the 50-day MA of 132.06, and above the 200-day MA of 119.51, indicating a neutral trend. The MACD of -0.75 indicates Positive momentum. The RSI at 33.89 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:FGR.

Eiffage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DG	73 Outperform	€69.18B	13.71	16.66%	3.96%	3.21%	4.24%
RXL	70 Neutral	€9.19B	16.83	4.63%	3.61%	2.16%	-64.02%
FGR	69 Neutral	€12.43B	11.12	14.39%	3.87%	7.71%	-2.82%
ALO	67 Neutral	€10.71B	11.61	3.14%	―	4.58%	―
EN	64 Neutral	€18.71B	14.13	8.45%	4.51%	0.88%	-2.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPIE	56 Neutral	€7.38B	190.12	8.70%	2.14%	10.87%	-10.35%