Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on FERROVIAL SA. We currently have 5 research reports from 1 professional analysts.
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Feel the Brexit
27 Oct 16
Results Ferrovial release a disappointing 9-month release. Consolidated revenue were up 6.4% and reached €7,697m. Group EBITDA came in at €650m, down 20.3% yoy. The results were mostly driven by the strong toll road business (+20% lfl) which continued performing well during the third quarter whereas all three other divisions were weak. Construction was down 6.2% and Services’ margins declined strongly. The Airport division was strongly down due to a loss on hedges following Brexit (higher inflation expectation and lower interest rates in the UK). As a result, the Airport equity associates’ contribution was strongly down, from c.€119m in 9m15 to €-56m in 9m16. Reported EBIT was up 5.5% at €684m with a margin of 8.9%, down 10bp. Attributable net profit fell 42.2%, mainly reflecting the fair value adjustments at Heathrow. Debt Net consolidated debt reached €5,693m, with €5,993m of concession projects (vs. €6,057m in December 2015) while the net cash position ex-infrastructure projects stood at €300m on 30 September (vs. €1,514m in December 2015), mainly reflecting the acquisition of Broadspectrum (€934m). New developments The company listed several pending bidding processes: Ferrovial confirmed that Cintra has presented a bid for the I-66 project, a $2.1bn toll concession project in Virginia, USA. The consortium has been put on the local authorities’ short list and the award should be announced in the fourth quarter of this year (expected in November). Cintra has been pre-qualified in the US for the design, construction and maintenance of an airport shuttle to connect Los Angeles International Airport’s terminals. Cintra has also presented a bid for the extension and widening of Highway 427 in Toronto. Lastly, a consortium including Cintra and Agroman has been pre-qualified for the Melbourne Metro project, for the design, construction, financing and maintenance of a 9km tunnel and five underground stations. Ferrovial also announced the completion of the Transchile acquisition announced in September. Once funded, the operation will represent an investment of $72m.
Strong Brexit sensitivity
10 Aug 16
The H1 16 results are down mainly due to sterling depreciation and the lower results of the service division in the UK: - H1 16 revenues -1.8% lfl (vs reported -0.8%); - H1 16 EBITDA -17.6% lfl (reported -21.8%); - Net profit after fair value adjustments €189m (of which +€268m disposals and impairments and €5m from equity associates) vs €268m for H1 15 (of which +€58m disposals and impairments and €55m from equity associates). In July, a consortium led by Ferrovial was selected by Denver airport to start negotiations about remodelling and the operation of its main terminal.
Negative forex effects and disappointment from the UK service division recently acquired
09 May 16
Q1 16 results were marked by another negative impact from UK activity in services and negative forex effects which were not offset by the strong traffic growth at Ferrovial’s airports & toll roads despite the positive calendar year effect. Consolidated revenues & EBITDA were both down by 3.0% and 7.4% respectively and lfl revenues were +0.4% and EBITDA -2.8%. Net profit increased by +32.3% to €157m thanks to capital gains (Chicago Skyway €110m; Irish toll roads €20m).
The founding family's control is reduced to 30% (from 40%)
14 Mar 16
Information released with the FY 15 annual report In August 2015, Portman Baela SL and Karlovy SL, transferred all the capital that they held in Ferrovial to their associates and the previous shareholder agreement regarding Ferrovial SA has been dissolved. On 13/01/2016, UBS Limited sold a block of 30,387,965 shares in Ferrovial SA, representing around 4.15% of the capital, on the orders of Siemprelara SL (at €19.07/share, which were placed with qualified investors. On 21/01/2016, Mr Leopoldo del Pino y Calvo-Sotelo gave notice of his resignation as a Director on Ferrovial’s Board. The significant shareholdings in Ferrovial SA are now: Rijn Capital BV (company controlled by Rafael del Pino y Calvo-Sotelo): 20.3% Menosmares SLU (company controlled by Maria del Pino y Calvo-Sotelo): 8.2% Siemprelara SLU (company controlled by Leopoldo del Pino y Calvo-Sotelo): 4.2% (vs formerly 8.35%) Soziancor SLU (company controlled by Joaquin del Pino y Calvo-Sotelo): 2.5%
Panmure Morning Note 30-11-2016
30 Nov 16
RPC, the international plastics products design and engineering group, has delivered yet another strong set of results (1H17 EBITDA +65%, EPS +45%). At the interim stage PBT was +66% (materially better than we had forecast). Topline growth has principally being driven by acquisitions (GCS + BPI), though organic remains a feature (and crucially remains at levels consistent with FY16). The two recent acquisitions have quickly been assimilated into the panEuropean platform and management has raised cost synergy guidance (again).
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.
N+1 Singer - Vp - Excellent interims, outperforming again
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.