Ferrovial SE Fundamental Analysis (NASDAQ: FER)
Ferrovial SE (NASDAQ: FER) shows weak financial fundamentals with a PE ratio of 61.79, profit margin of 8.85%, and ROE of 14.43%. The company generates $9.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FER's fundamental strength across five key dimensions:
Efficiency Score
WeakFER struggles to generate sufficient returns from assets.
Valuation Score
ModerateFER shows balanced valuation metrics.
Growth Score
ModerateFER shows steady but slowing expansion.
Financial Health Score
ModerateFER shows balanced financial health with some risks.
Profitability Score
WeakFER struggles to sustain strong margins.
Key Financial Metrics
Is FER Expensive or Cheap?
P/E Ratio
FER trades at 61.79 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FER's PEG of -0.88 indicates potential undervaluation.
Price to Book
The market values Ferrovial SE at 6.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.55 times EBITDA. This signals the market has high growth expectations.
How Well Does FER Make Money?
Net Profit Margin
For every $100 in sales, Ferrovial SE keeps $8.85 as profit after all expenses.
Operating Margin
Core operations generate 10.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.43 in profit for every $100 of shareholder equity.
ROA
Ferrovial SE generates $3.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ferrovial SE produces operating cash flow of $1.93B, showing steady but balanced cash generation.
Free Cash Flow
Ferrovial SE generates strong free cash flow of $1.28B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.77 in free cash annually.
FCF Yield
FER converts 3.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
61.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How FER Stacks Against Its Sector Peers
| Metric | FER Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 61.79 | 30.52 | Worse (Expensive) |
| ROE | 14.43% | 1172.00% | Weak |
| Net Margin | 8.85% | -20786.00% (disorted) | Weak |
| Debt/Equity | 1.82 | 0.38 | Weak (High Leverage) |
| Current Ratio | 1.13 | 24.22 | Neutral |
| ROA | 3.11% | -1311221.00% (disorted) | Weak |
FER outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ferrovial SE's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure