FERROVIAL

Analysis of Ferrovial share price

BUY   SELL
72% of retail investor accounts lose money when trading CFDs with this provider.
 
Chart provided by Tradingview

The Spanish stock Ferrovial is one of the most popular stocks on the Madrid Stock Exchange. In this detailed report, we offer you everything you need to know about it. You can find out everything you need to know about Ferrovial in this detailed report, including price analysis, company and business information.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we know that Ferrovial's activities are particularly exposed to emerging economies. It is therefore necessary to closely monitor these economies and the group's development in them.

Analysis N°2

Strategic operations such as the acquisitions made by Ferrovial represent an opportunity for development and growth that you should also take into account thanks to the business synergies generated.

Analysis N°3

The group's efforts to diversify its services and activities to reach more targets and different markets should also be monitored.

Analysis N°4

The current downturn in the credit sector and the decline in liquidity is also a concern that may influence this value.

Analysis N°5

The rather limited economic growth of the sectors in which the group is present must also be closely monitored.

Analysis N°6

Finally, changes and tightening of regulations in this sector may also have an impact on the evolution of its share price.

72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500

General presentation of Ferrovial

The Spanish group Ferrovial is currently one of the world's leading construction companies. It is primarily involved in urban services, but also in the construction of buildings and infrastructures, the management of motorways under concession and the operation of airports.

Ferrovial generates most of its turnover in Spain and the UK.

As commented above, the group operates in four main business lines, which are:

  • Motorways: develops and finances toll roads in seven countries. In Ireland, for example, it owns 20% of the motorways.
  • Airports: develops and manages airports, either on a temporary or permanent basis such as Heathrow, Glasgow, Aberdeen and Southampton.
  • Construction: through its subsidiary Ferrovial Agroman, it builds high-speed roads and motorways in various countries. It also builds airports and buildings.
  • Services: Ferrovial is also involved in the maintenance of various infrastructures, facilities and buildings, as well as providing other services.

Ferrovial's share price is currently listed on the Spanish Mercado Continuo and is included in the calculation of the Ibex 35 stock market index.

Analysis of Ferrovial share price
72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500

The major competitors of Ferrovial

Let's discover the direct competition of the Ferrovial group with a presentation of its main opponents in this sector.

ENAIRE

This group, formerly known as Aeropuertos Espanoles y Navegacion Aerea or AENA, is the Spanish organisation in charge of airports in Spain and air traffic. In particular, it provides air transit services for take-offs and landings and owns 5 control centres and 22 control towers that handle the traffic of 1.8 million flights per year. The company operates in Spain, the Canary Islands, the Balearic Islands and certain areas of the North Atlantic, the Western Mediterranean and the Western Sahara.

ADP

Another competitor of Ferrovial is the French group ADP or Aéroports de Paris which builds, develops and operates airport platforms. It is also the world leader in airport management in terms of passenger numbers and the group is in charge of a network of airports around the world through its subsidiary ADP International which manages 24 airports in 13 countries. Of course, the group is listed on the Euronext Paris market and is part of the CAC Mid 60 and the SBF 120 index.

Fraport

This German company specialises in airport management and operates, among other things, Frankfurt am Main airport, where it also has its head office. The company also has holdings in other airports in Germany and abroad. The Fraport Group is listed on the Deutsche Börse and is part of the MDAX stock index. It currently employs around 20,000 people.


The major partners of Ferrovial

Of course, the Ferrovial Group can also count on some strategic allies and we will present here two concrete examples of past strategic alliances of this company:

Renault 

First of all, the group recently signed a partnership with the French Renault group to launch a free-floating car-sharing service in Paris. This has resulted in a fleet of 500 electric Renault Zoe vehicles equipped with ZITY technology being offered to Parisians. This flexible offer is also adapted to the needs of the market and responds to a strong trend since 20% of Parisians use car-sharing. This is thus a new step in a partnership initiated in Madrid in 2017 by the two companies that had borne fruit.

Waga Energy

The group has also signed a partnership with Waga Energy and Nedgia to produce biomethane at the Can Mata landfill near Barcelona.

72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500
The factors in favour of a rise in the Ferrovial share price:

In order for a company to be sustainable and grow in the future, it must of course be sufficiently armed to face the ups and downs of the market and seize the most interesting opportunities. In order to better understand how Ferrovial can evolve and therefore how its stock market share can progress, we now propose to discover what are the strengths of this group as well as its main weaknesses.

Let's begin this comparative analysis of Ferrovial's strengths and weaknesses by recalling its greatest current strengths and the elements that could boost its growth:

  • First of all, it can be seen that the Ferrovial group has recorded solid financial performance over the last few years, with results that have been improving and that, in most cases, have met the targets set.
  • The size of the company is also one of its strengths, as is its presence on the international market. The Ferrovial Group currently employs more than 70,000 people and operates in some 15 countries.
  • Another strategic strength of the company is that its strategy tends to be selective in its exposure to emerging economies, which limits its risk exposure while allowing it to position itself in geographic areas where demand is likely to increase.
  • In the same way, the Ferrovial Group has an extremely well thought-out strategy of partnerships and strategic alliances, which allows it to achieve commercial synergies in order to increase its profitability in the long term while limiting costs and investments.
  • Finally, since its creation, the Ferrovial Group has constantly diversified its activities, which on the one hand allows it not to be overly exposed to a single segment, and on the other hand, to reach more and more markets and thus increase its revenues.
The factors in favour of a drop in the Ferrovial share price:

Let us now turn to an analysis of the main weaknesses of the Ferrovial group and the elements that could limit its growth or expose it to major risks in the future:

  • Firstly, it is regrettable that, despite its efforts to export its activities to other continents, the Ferrovial group has a weak international presence compared to the other global giants in its sector of activity, who are thus one step ahead. One of the regrets is the weakness of the group's investments in certain attractive emerging markets.
  • The Ferrovial Group is still very dependent on the Spanish market for energy distribution, which can be a risk in the event of a targeted crisis.
  • The lack of credit and liquidity of the Ferrovial group is another weak point that should be highlighted and which may reduce its investment capacity and therefore its capacity for long-term growth.
  • As regards the group's major weaknesses, we can also highlight the fact that the group is suffering from the current weakness or even decline in Spanish and European economic growth, which is putting a relatively strong brake on its activities.
  • Finally, Ferrovial is also faced with increasingly strict regulation and legislation of its activities, which represents a serious hindrance to its development and tends to reduce its growth capacity.

As you've seen, Ferrovial has both advantages and disadvantages, and in your analysis of this value, you should always take these into account, as well as any new developments that may change the game.

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.

Frequently Asked Questions

On which stock market index is Ferrovial listed?

Currently, the Ferrovial Group is part of the composition of the national stock market index of reference in Spain, the Ibex 35. This means that the company is one of the 35 companies in the country with the highest market capitalisation. It is therefore quite easy to find accurate information, analysis and news about this company and this stock, and therefore to detect its future trends, with the added advantage of a high liquidity in the market.

What was the latest balance sheet of the Ferrovial Group?

The Ferrovial Group has published in 2020 its financial results for the accounting year 2019. Thus, we know that the group achieved in 2019 a turnover up to €6,054,000 against €5,737,000 in 2018. As for its operating profit, it was €401,000 and its net profit €259,000 compared to a net loss of €391,000 in 2018. These results are therefore rather encouraging for the company.

How can I find out about future movements in Ferrovial shares?

In order to best anticipate future trends in Ferrovial shares, we advise you to base your analysis on both the news and publications of this group and its sector of activity by means of a complete fundamental analysis and a technical analysis. This second analysis will be based on a study of the graphical movements over a given period and will use certain indicators to understand the most likely current and future trends.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500