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.
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.
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.
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.
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.
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.
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:
Geographically, more than half of the Acciona Group's sales are still generated in Spain.
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.
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.
The number two construction company in the world is a French company, namely the Vinci group.
Next is a Spanish company, the ACS group or Actividades de Construccion y Servicios, which is in third place in this ranking.
In fourth place, we find another French company with the Bouygues group and its various subsidiaries.
In fifth place is the Chinese company Sinohydro.
The French company Eiffage is ranked sixth in the world.
It is followed by the Australian group Strabag which is seventh in the ranking.
Japan's Kajima is in eighth place in this world ranking.
The ninth player in this industry is Obayashi of Japan.
Finally, it is another Japanese company that closes this ranking of the 10 largest construction companies in the world, namely Taisei.
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.
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.
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.
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.
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 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.
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.
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.
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.
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