The factors in favour of a rise in the Vinci share price:
Vinci's first asset is of course its positioning on the international market. Indeed, the group is currently and has been for several years the world leader in the building and public works sector. It stands out in particular in the motorway and airport concession segments. It should also be noted that Vinci is marked by a very strong presence outside France, with more than 41% of its sales outside France, which is relatively rare for a French company.
The Vinci company also benefits from a reassuring long-term strategy, highlighting the complementary nature of its activities. Indeed, there is a strong complementarity between the concession activities with the Vinci Autoroutes and Vinci Aéroports subsidiaries, which together account for more than 18% of the company's sales, and the contracting activities with the Vinci Energies, Eurovia and Vinci Construction subsidiaries, which generate the remaining 82% of the company's overall sales.
It is also relatively easy for investors and shareholders to have good visibility on the future results of the Vinci company. Indeed, the company usually communicates its order book with a horizon of one year of revenue, which allows correct and precise anticipations of the evolution of sales and profits.
The Vinci group also shows a very interesting capacity for growth and development. Indeed, the company often makes acquisitions, particularly of airport concessions that enable it to increase its market share in a sector that is known to generate high margins. Thanks to this judicious acquisition strategy, Vinci is today the fifth largest international player in this sector with more than 100 million passengers a year thanks to its subsidiary Vinci Airport.
In the coming years, Vinci should also benefit from the renewal of French motorway concession contracts. The investors appreciated the fact that the company was able to negotiate advantageous financial conditions for these renewals despite negative expectations.
Vinci also won the tender for the Grand Paris project, which is about to start and should enable the company to generate significant profits in France in the coming years. This offers additional visibility to investors.
Finally, in a difficult economic context for European companies, Vinci has succeeded in significantly reducing its debt. As a result, it has been awarded an A rating by the rating agencies in 2016 and offers a high return for investors.