The industrial sector of the stock markets has long been appreciated by professional investors. This sector’s shares are generally quite volatile with a high liquidity. This is the case for the Bouygues group, whose business activity and share price analysis data are presented below.
Firstly, we would attentively monitor changes in the demand and requirements in the construction industry in the countries undergoing development where the Bouygues Group and its construction subsidiary are present.
The growth of the mobile networks and particularly the approaching launch of the 5G network could also be points to monitor relating to the strategy of Bouygues Telecom.
Clearly it would be advisable to monitor the signature of any contracts between Bouygues and its partners in the private or public sectors that could provide the company with supplementary revenue.
Of course, we would also closely monitor the growth and events of the Bouygues Group’s competitors, notably in the sectors of mobile telephones and construction.
In the same way, we would follow closely the economic and financial health of local co-operatives that represent a large part of the demand for services from Bouygues. This is particularly the case in countries that are still following an austerity plan or experiencing financial troubles and therefore need to reduce their budgets.
Finally, it is recommended to compare the strategic plans and fixed objectives of this group with its true economic and financial results.
The Bouygues Group is a French industrial company whose brand has become renowned, a household name in fact. Its activities can be divided into two main sectors. More than 78% of its turnover is generated through construction and the maintenance of infrastructures regarding transport, leisure and urban developments, and the remainder is from its reputable activities in telecommunications and media through Bouygues Telecom with 14.9% of its turnover alone, plus 6.3% from the TF1 television channel.
It is of course in France and Europe that Bouygues achieves the major part of its turnover although it is also present in North America, Pacific Asia, Africa, Oceania, Central and South America, as well as the Middle East.
You should also have to carry out a complete study of the group's competition as part of your analyses of the Bouygues share price. That's why we suggest that you to discover who Bouygues' main competitors are in its various segments.
In the construction and concessions sector, it is of course the French group Eiffage which is in direct competition with Bouygues. This group operates in various areas of public works such as construction, infrastructure, concessions and energy. Eiffage is also the third largest construction group in France and fourth in Europe.
Another company in direct competition with Bouygues is the French group Vinci. This company is the second largest construction and Concession Company in the world and employs over 222,397 people worldwide. Its activities apply to motorways, concessions, energy and construction. The Vinci group is also present in around a hundred different countries.
The Orange group specializes in telecommunications and has over 266 million customers around the world. It's the leader or second operator in nearly 75% of the European countries in which it's present and in 83% of the countries of Africa and the Middle East.
The French group Vivendi is another competitor of Bouygues which carries out several activities including media and communication. It's present in around 100 countries and is included in the composition of the CAC 40 index. Vivendi focuses its activities around the Universal Music Group and the Canal + premium TV group as well as the publishing company Editis and Havas.
Finally, Bouygues' last major competitor is the M6 group, which is a French media group built around the television channel of the same name. The group is mainly active in the audio-visual sector with several general and thematic channels, radio stations, film and television production and distribution companies. M6 is also present online with several information and service websites, online videos and computer companies. It has recently branched out into publishing, music and entertainment production, along with distance selling and sports.
In the past, and even nowadays, the Bouygues Group has become associated with other companies whose activities were similar or complementary to theirs.
Bouygues notably invested in Alstom Company capital in which it holds 29.3% which generates supplementary revenue for the company.
This company also became associated with the Lagardère Company for content distribution on its television channels.
In the mobile telephone sector, Bouygues also became associated with SFR (Numéricable) in 2008 in order to counter the major competition from the arrival on the market of the low cost Free (Iliad) Company.
More recently, the Bouygues Company also implemented a partnership, signed in 2019, with the Fnac-Darty Group with the purpose of providing internet subscriptions, both fixed and mobile, from the new Fnac Connect POS.
Still in 2019, the Bouygues Group also implemented a sizeable partnership with the Cellnex Group in the 5G sector. Cellnex is actually a major player in the wireless telecommunications equipment sector in Europe and created 88 dense zones for Bouygues Telecom with the objective of managing 5G traffic.
Recently Bouygues finally completed a partnership agreement with Axione with the objective of accelerating its internet speed and increasing the number of subscribers per fibre.
To better understand how Bouygues shares are susceptible to change in price over the medium and long term it is important to be familiar with this French group and understand its strengths and weaknesses in order to best determine its growth possibilities. Here therefore are some explanations on this subject:
Among the strong points of Bouygues we particularly note its presence in different markets such as construction and real estate but also the audio visual and telecommunications sectors. It has of course shown itself to be extremely capable of diversifying its activities in order to consistently increase its revenue. Bouygues also benefits from a strong presence abroad with particularly strong development in the emerging countries such as India and China. Another strength of the Bouygues Group relates to its investment in eco-construction and sustainable development, two activity sectors that are experiencing a boom in growth at present. And finally it benefits from a number of significant long term contracts that provide a positive perspective to investors.
However the Bouygues Group also has certain weak points such as a debt level that is fairly high. We also note that Bouygues depends to a great extent on the Alstom Group relating to its net results. And finally, since its launch onto the DTT channels, its participation in the TF1 media group is increasingly delicate.
The Bouygues Group does nonetheless have strong opportunities it could seize in the future due to an increasing demand in infrastructure and buildings in countries experiencing a development boom where it is well implanted. The development of the 5G network throughout French territory could also represent a means for Bouygues to distinguish itself from its direct competitors in the telecommunications sector. But also, and especially the Bouygues Group could benefit from the implementation of partnership contracts between the private and public sectors to generate more income.
However, to fully benefit from these development opportunities Bouygues must face certain threats that continue to persist. This is particularly true in the area of telecommunications where its low cost competitor Free continues to lower the price of mobile telecommunications. After a few difficult years and a drop in production in the construction sector, Bouygues also has to face increasing strong competition from China. Other particular events and situations can also negatively influence the development possibilities of the Bouygues Group. Local co-operatives could for example find themselves in increasingly complex budget related situations that require them to review their current and future projects. And to conclude, a number of countries around the world are still recovering from the economic crisis, following austerity plans that also limit new investments and the advance of projects already underway.
The Bouygues Group does of course publish its share price on its official website in the section reserved for investors. However there are other ways to consult this share price in real time. You can review the stock market charts available on the online trading platforms which also offer the advantage of enabling you to customise them with the addition of certain indicators and information.
Generally speaking, there are two distinct methods that enable you to speculate on the Bouygues share price. Either you can buy this company’s shares through an intermediary and integrate them in your stock market portfolio or you can choose to trade in these assets directly using CFD contracts through an online trading platform which enables you to speculate on the rise or fall in this asset price depending on the trend.
The Bouygues Group is of course a French group and therefore its share price is quoted on the Euronext Paris stock market. More precisely, Bouygues is quoted in the section A of this financial marketplace as this company boasts one of the largest French stock market capitals. We also note that the Bouygues Company holds its position as one of the 40 largest stock market capitals in France and is therefore included in the CAC 40 stock market index.
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