Trade the Acciona share!
ACCIONA

Analysis of Acciona share price

Trade the Acciona share!
BUY   SELL
77% of retail CFD accounts lose money - Plus500.com
 
Chart provided by Tradingview

Before trading Acciona stock, however, it is necessary to have the essential knowledge about this stock and this company. Thanks to the information you will discover in this article, you will know in detail the activities of this group, its main competitors or its partners, but also its strengths and weaknesses that could influence its stock price in the more or less long term.

Elements that can influence the price of this asset:

Analysis N°1

Nowadays, energy efficiency is at the heart of all concerns, especially as far as the European market is concerned. Indeed, the European Union has set up a strategy called Europe 2020, one of whose main objectives is precisely this energy efficiency. Acciona should therefore take advantage of this new market to develop its activities in renewable energy.

Analysis N°2

Although it is not yet very developed internationally, the Acciona group is doing its utmost to position itself in emerging Asia-Pacific markets such as China and India, which are experiencing rapid urban development. These operations can effectively boost its share price. These countries, in order to cope with significant growth, call on specialized companies like Acciona to meet their infrastructure and energy-efficient solutions needs.

Analysis N°3

It is also important to keep a close eye on the European debt situation given its impact on construction, which has been in decline for several years.

Analysis N°4

The price of building materials will also have a direct impact on Acciona's profitability with a recent increase in the price of certain metals such as steel.

Analysis N°5

Like all businesses in this industry, Acciona is largely dependent on government regulations and laws governing land use. These laws can change and most often relate to zoning, land uses, density levels, building design, warranties, stormwater or open space use. They can be a hindrance to Acciona's operations and must be closely monitored.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

General presentation of Acciona

First of all, let's take a few moments to understand who Acciona is and what its main activities are. The Spanish group Acciona is indeed a construction company with international activities. But the activities of this company are varied and we can divide them into five very different poles according to the share of turnover that they generate and therefore their interest for the group as follows:

  • The design, construction and maintenance of infrastructures and buildings are Acciona's most important activities, generating more than 37% of the company's total turnover. These include roadways, highways, tunnels, railways, waterworks, wastewater treatment plants, car parks, hospitals and housing.
  • The energy services activities represent 29.5% of Acciona's turnover, including the production of wind, hydro, solar and biomass electricity, the engineering and construction of wind farms, the production of wind turbines and biofuel.
  • Environmental services related to water generated 11.8% of the group's turnover, including the design, manufacture and management of desalination, drinking water distribution and wastewater treatment plants.
  • Service activities such as street and hospital cleaning, handling services, airport services, waste collection, logistics services and others represent 10.5% of Acciona's turnover.
  • Finally, the remaining 11% of the company's turnover is generated by fund management, stock market intermediation services, wine production and other related specialties.

Geographically, more than half of the Acciona Group's sales are still generated in Spain.

Analysis of Acciona share price
77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

The major competitors of Acciona

As a construction specialist, the Acciona Group is in direct competition with other large companies in this highly competitive sector. Therefore, it is very important to know this environment and the main competitors of this Spanish group before taking any position on this online stock. We suggest that you find out who the biggest players in this sector are on an international level with a ranking of the ten biggest construction companies in the world according to turnover.

CSCEC

The leader in the construction sector in the world is currently the Chinese group CSCEC or China State Construction Engineering Corporation which far exceeds the other companies in this sector.

Vinci

The number two construction company in the world is a French company, namely the Vinci group.

ACS

Next is a Spanish company, the ACS group or Actividades de Construccion y Servicios, which is in third place in this ranking.

Bouygues

In fourth place, we find another French company with the Bouygues group and its various subsidiaries.

Sinohydro

In fifth place is the Chinese company Sinohydro.

Eiffage 

The French company Eiffage is ranked sixth in the world.

Strabag

It is followed by the Australian group Strabag which is seventh in the ranking.

Kajima

Japan's Kajima is in eighth place in this world ranking.

Obayashi

The ninth player in this industry is Obayashi of Japan.

Taisei

Finally, it is another Japanese company that closes this ranking of the 10 largest construction companies in the world, namely Taisei.


The major partners of Acciona

The Acciona Group has always relied on partnerships and other strategic alliances with other companies in order to increase its growth or to expand in various segments or international markets. These alliances are interesting to study for the effects, most often positive, that they can have on the stock market. Here are some recent examples of partnerships set up by this company.

Renault-Nissan

In 2010, for example, the Acciona group joined forces with the Renault-Nissan group to jointly develop the electric vehicle recharging network and associated services. Acciona contributed to the project by providing its expertise in the deployment of this smart charging network and also provided some of the necessary resources such as renewable energy. For its part, Renault-Nissan will take advantage of the opportunity to market more vehicles in its electric range.

Ferrovial 

In 2015, Acciona will form a strategic alliance with Ferrovial. The two companies have collaborated on the construction of a toll motorway in Australia for more than one billion euros. The two Spanish companies worked with the Australian companies Plenary Group and Transfield Services on this project. This is a public-private partnership for a 25-year concession.

Veolia 

In 2018, it was once again in Australia that the Acciona Group was able to set up a strategic partnership, this time with regard to the construction of an energy recovery unit for the country called Kwinana. The aim of this production unit is to supply green energy to several thousand Australian households. The term "partnership" is used here because while Acciona is responsible for the construction of this unit, it is the French company Veolia and its Australian subsidiary that is in charge of its management and maintenance. For Acciona, the project should be completed in 2021.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500
Positive factors for Acciona shares
The factors in favour of a rise in the Acciona share price:

In order to know which trend to follow with regard to Acciona shares, you first need to know how to assess the company's current ability to grow further or to increase its turnover. In order to do this, we suggest that you take a look at the main strengths of this group here.

  • Of course, the company's position in the development and management of infrastructures, renewable energies, water and services is one of its greatest assets. In fact, the company is currently the leader in this sector in Spain and has a solid order book for the coming years. It is also well positioned in the European market in general.
  • Another advantage is Acciona's increasing focus on the renewable energy segment. This segment is currently considered to be very promising in terms of ecological and environmental issues. The Acciona Group is regularly setting up new wind farms around the world, which enables it to accelerate its total production of green electricity. In addition to taking a close interest in environmental safety, Acciona is thus pursuing a very efficient production strategy that should serve it well in the longer term.
  • The Acciona group can of course count on its large workforce to support its growth. The company currently employs more than 30,000 people worldwide and this number continues to rise, a sign of the group's good financial health.
  • Finally, it is of course a real advantage that this company offers a very diversified portfolio of products and services. It is active in sectors as varied as real estate, infrastructure, energy, logistics, transport and urban and environmental services. This diversification allows it to better protect itself against the risks associated with a single sector of activity.
Negative factors for Acciona shares
The factors in favour of a drop in the Acciona share price:

Of course, the Acciona group does not have only advantages and must also face some obstacles to its development with its main weaknesses. We propose you to discover here these weaknesses in details.

  • First of all, although the Acciona group operates in more than 30 different countries around the world, the majority of its profits are still made in Spain. As a result, it is particularly exposed to the risk of an economic slowdown or even a crisis in this country, despite a rather encouraging order book.
  • The second and final weak point of Acciona concerns its international market share, which is still far below that of the leaders in this sector mentioned above.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What are the key dates for Acciona?

There are several important dates in the history of the Endesa group and here is a summary: In 2007, the group bought 21% of Endesa, which is the main electricity company in Spain. Later, in 2009, the Enel Group bought Acciona's 25% share of Endesa for almost 11 billion euros. The same year, the group signed a strategic agreement with Mitsubishi. Finally, in 2013, the group won a 2.3 billion real tender to build a metro line in Fortaleza.

What were the Acciona Group's latest results?

When analyzing Acciona stock, you will of course need to look at the financial results of this company. As far as the latest publications of this group are concerned, these are the results of the fiscal year 2019. Thus, the figure for the year was 7,191 million euros. As for the net result of the group, it was 352 million euros. Of course, you can view this data on the group's website.

What analysis strategy should be adopted for Acciona shares?

If you want to set up an effective analysis strategy to study the Acciona share, you must use different methods together. We will focus mainly on technical analysis, which is based on the study of historical stock charts and on the main trend and volatility indicators, as well as on fundamental analysis, which will study the results and the economic environment of this company.

77% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500