FCC SM
Fomento de Construcciones y Contratas, S.A.
Industrial/Transportation
10/09/2014
Presented
| Date | 10/07/2014 |
| Price | €14.84 |
| Market Cap | $2.11B |
| Ent Value | $9.28B |
| P/E Ratio | 18.96x |
| Book Value | €2.59 |
| Div Yield | N/A |
| Shares O/S | 127.07M |
| Ave Daily Vol | 880,000 |
| Short Int | N/A |
Current
| Price | €12.38 |
| Market Cap | $6.27B |
| Fomento de Construcciones y Contratas, S.A., together with its subsidiaries, is primarily engaged in the environmental services water, and infrastructure businesses in Spain and internationally. The company offers environmental services, such as collection and treatment of solid waste, and cleaning of public streets and sewer systems. It also provides integral water management services, including collection, treatment, and distribution of water for human consumption; wastewater collection, filtering, and treatment; and design, construction, operation, and maintenance of water infrastructure for municipal, industrial, agricultural, and other services. In addition, the company is engaged in the infrastructure construction projects, building construction, and related activities comprising motorways, freeways and other roads, tunnels, bridges, hydraulic construction works, ports, airports, residential property developments, housing units, non-residential building construction, lighting, industrial air conditioning and heating systems, and environmental restoration, etc. Further, it is involved in the operation of quarries and mineral deposits; manufacture of cement, lime, plaster, and related pre-manufactured products; and production of concrete. The company was founded in 1900 and is based in Madrid, Spain. |
Publicly traded companies mentioned herein: Fomento de Construcciones y Contratas SA (FCC SM), Ferrovial SA (FER SM), ACS Actividades de Construccion y Servicios SA (ACS SM), Hochtief AG (HOT GR), Banco Bilbao Vizcaya Argentaria SA (BBVA), Bankia SA (BKIA SM)
Highlights
The presenter is long shares of Fomento de Construcciones y Contratas SA (FCC), which is one of the four largest construction companies in Spain. The industry has been consolidating for years (i.e., Ferrovial bought Heathrow and ACS took a majority share in Hochtief), and while the group of European construction companies trades cyclically, FCC has some idiosyncratic issues that make for an attractive risk/ reward set up at this time. Near-term, he sees upside for shareholders to 20 euros (from ~14 today), with the potential to reach 30+ in his best case scenario.
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