TECNICAS REUNIDAS

Analysis before buying or selling Tecnicas Reunidas shares

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Before taking a position on the Tecnicas share price, it is strongly recommended that you first acquire an excellent knowledge of this company. In this article, we offer you to discover some useful information that will allow you to know more about this stock. In this article, you will discover some useful information that will allow you to know more about this stock. You will discover some figures and general stock exchange data but also data concerning the activities of this company, its main competitors or its main strengths and weaknesses.

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ISIN code: ES0178165017

Ticker: BME: TRE

Index or market: BME

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Elements to consider before selling or buying Tecnicas Reunidas shares

Analysis N°1

The evolution and economic health of the oil and gas sector, on which the activity of the Tecnicas Reunidas group depends to a very large extent, must be monitored

Analysis N°2

The price of these raw materials on the stock market will also be an element likely to have an influence on this demand and therefore on the profitability of this group and the interest of its share on the stock market.

Analysis N°3

We will also focus on the increasingly strong competition in this sector with the publications of the major players in this sector but also the evolution of their positioning on the market.

Analysis N°4

The signing of new supply and service contracts by Tecnicas Reunidas with major oil and gas groups will have a positive influence.

Analysis N°5

Finally, the financial results and growth strategies of this group will of course need to be carefully monitored.

Analysis before buying or selling Tecnicas Reunidas shares

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General presentation of Tecnicas Reunidas

Let's start our review of Tecnica Reunidas stock with a quick introduction to this company. By discovering the activities of this group, you will be able to better understand the challenges and prospects for growth and thus better anticipate the possibilities of variation of its share.

The Tecnicas Reunidas Group is a Spanish company specialized in engineering and construction services, mainly for the oil and gas industry. In order to better understand the activities of this group, they can be grouped into different poles according to their importance and in this way:

Services to the oil and gas industries are the most important, generating 84.5% of the group's revenue, including the design, construction and installation of drilling, processing, refining, re-gasification, transportation and petrochemical production facilities.
The second area of activity of Tecnicas Reunidas is the energy industry, which generates 13.5% of the turnover with the development, construction and maintenance of thermal, nuclear and solar power plants.
Finally, the remaining 2% of the group's turnover is generated by other ancillary activities such as the design and construction of infrastructures such as airports, roads or ports, wastewater treatment units and waste management.

From the point of view of the geographical distribution of the activities of Tecnicas Reunidas, we note that 10.9% of the turnover is generated in Europe, of which only 1.4% in Spain. The Middle East is the largest market with 63.4% of the turnover. Next comes the American market with 12.8% of turnover, Asia with 5% of turnover and the rest of the world with 6.5% of turnover. The group currently employs around 8,644 people worldwide.

The major competitors of Tecnicas Reunidas

The Spanish group Tecnicas Reunidas is undoubtedly one of the leaders in its sector in the world. But it also faces some major international competitors, and as an investor you need to know about these competitors in order to analyse their news and results. So here are the world's leading engineering and construction companies.

Technip

The Technip Group is of course a major competitor as this French company is a leader in project management, engineering and construction for the oil, gas and wind energy industry. It is also active in the chemical industry.

SWP Global

Quebec-based WSP Global is another competitor to consider. It is also known by its former name of Genivar.

Aecom Technology

The American group Aecom Technology, which specialises in engineering consultancy, is also an opponent of Tecnicas Reunidas.

Arcadis

Another company to be considered is Arcadis, which specializes in engineering, consulting and project management and is based in the Netherlands. This company employs more than 27,000 people worldwide. This company operates in various fields such as infrastructure, water, environment, building and other fields with services of assistance to the owner, project management, control, assistance to companies and assistance to managers.

Jacobs Engineering

Another competitor of the Spanish company is the American company Jacobs Engineering, an engineering consulting firm.

WorleyParsons

This is also the case for the Australian company WorleyParsons, which is an engineering consultancy firm also specialising in the energy and industrial sectors.

Stantec

Next is the Stantec Group, a Canadian-based construction engineering company.

Fugro

Another company to keep an eye on is Fugro, based in the Netherlands, which offers geotechnical expertise and assistance in the field of oil and mining exploration and production, positioning and topography.

Atkins

The last major competitor of Tecnicas Reunidas is the British group Atkins, which provides engineering support in the public works sector and is listed on the London Stock Exchange.

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The factors in favour of a rise in the Tecnicas Reunidas share price:

Firstly, the group enjoys strong brand recognition. This applies to the vast majority of the products and services offered by the company in the building services sector. In particular, this recognition allows the group to charge a higher premium than its competitors in the field.
It is also worth mentioning that the Tecnicas Reunidas group is currently a leader in its sector in Spain and is also one of the largest companies in this field internationally.
It is also an asset that Tecnicas Reunidas offers a wide range of services to its customers, thus meeting a large part of their needs. This, of course, avoids the flight of these customers to the competition.
It should also be noted that Tecnicas Reunidas is a relatively old company and was one of the first to enter this now increasingly saturated market. This has enabled it to acquire a larger market share than most of its competitors.
The group is also often praised by analysts for the quality of its talent management strategy as it effectively develops the skills of its employees. The quality of human resources in this company is therefore also a strong point.
Lastly, it is of course also worth noting that Tec,icas Reunidas operates internationally and is therefore not solely dependent on the Spanish market. This gives it less exposure to geo-economic risk and allows it to diversify its sources of income.

The factors in favour of a drop in the Tecnicas Reunidas share price:

To conclude this article, and after having reviewed the main strengths of the Tecnicas Reunidas group, we now suggest that you take note of the main weaknesses of this company in order to moderate your assessment of the possibilities of price variation of this share.

Firstly, we can highlight the logistical risk represented by the supply costs of this company. This company is very dependent on its few suppliers, which can cause problems with operating margins in the event of price increases.
Moreover, in general, the group's gross and operating margins are relatively unsatisfactory or could be improved, as they have been weighing on its financial results for several years.
On the other hand, and if Tecnicas Reunidas is able to develop the talents of its company, we also notice that it is more and more difficult to face the increase in salaries necessary to retain them.
The sector of activity in which Tecnicas Reunidas operates can also be considered a weak point of this company. Despite strong growth, this sector is also seeing increasing competition, which is preventing the Spanish group from gaining new market shares and limiting its future growth opportunities.
This brings us to another weak point, which concerns the weight of this international competition in terms of the prices charged. Forced to lower its prices, Tecnicas Reunidas sees its margins fall even further because of the lack of possibility of making significant economies of scale.
Finally, Tecnicas Reunidas could invest more in research and development.

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

How to invest quickly in Tecnicas Reunidas stock?

To start investing in the Tecnicas Reunidas stock price, you have several options. The first is to simply add the stock to your portfolio by buying it through a securities account. But you can also trade the stock directly using contracts for difference or CFDs, which are online derivatives that allow you to take up or down positions.

What is the capital distribution of Tecnicas Reunidas?

If part of the capital of Tecnicas Reunidas is floating, another part is held by private shareholders including Jose Llado Fernandez Urrutia with 37.2%, AzValor Asset Management with 3.49%, Cobas Asset Management with 3.01%, Ariel Investments with 3.01%, Norges Bank Investment Management with 2.99%, Highclere International Investors with 2.98%, Templeton Global Advisors with 2.10%, Santa Lucia Asset Management with 1.59% and The Vanguard Group with 1.47%.

What strategy should be implemented on the Tecnicas Reunidas share?

The best strategy to implement on this stock will depend on your investment horizon and your investor profile, particularly your appetite or aversion to risk. In any case, this strategy must be based on a complete and reliable analysis of this stock with relevant and coherent technical and fundamental analyses to detect the best signals.

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