If there is a value in the selective index of Spanish equities, the Ibex 35, which is clearly bullish, this is undoubtedly the construction company Ferrovial. It has even done very well in the worst moments of European equities. Being one of the stock market proposals that have appreciated the most in recent months. Where session by session the market appreciated in the positions with a strong inflow of money by investors. With a much better behavior than in the rest of the sector.
It is also a very interesting option so that you can invest your money in the medium and long term due to the great stability offered by this listed company. Both for profiles in small and medium investors, aggressive as well as more defensive or conservative. In this sense, it serves everyone's interests and therefore is a good option for you to make your savings profitable from now on. Beyond what may happen from the point of view of your technical analysis. In either case, it is a value to include in your next investment portfolio.
Also, you cannot forget that this is a stock market value that is signing new contracts to carry out its works and this factor encourages its prices to revalue, to a lesser or greater intensity. After all, it is a listed company that is very present in some of the most important countries in the world, such as Great Britain or United States. With a very high volume of contracts and that suggests that it can continue to climb in the price of its shares. At a very difficult time for all equity markets on the drums of a new economic recession in the coming year.
Ferrovial: around 25 euros
After many years, its shares have managed to overcome the strong support it had at levels of 25 euros. It can be the way to reach more ambitious goals that can even lead to approach up to 30 euros in the short and medium term. Not surprisingly, it is at this level where it has its next resistance and all this accompanied by a very high trading volume. In any of the cases, this construction company is the one that is having the best performance within this important sector. A segment that to some extent has lagged a little behind the expectations that had been created by financial analysts.
In any case, the most important thing for small and medium investors is that Ferrovial's shares are clearly bullish at the moment. For now without any sign of weakness as if to suggest that it is time to undo the positions in this financial asset. If not, on the contrary, new buybacks can be made to enhance our presence in one of the leading construction companies in the Spanish economy. Where we have more to gain than lose right now.
Precisely in a period in which it is being very negative for the international stock markets and especially for the Spanish one. Where this value can help us to strengthen our positions from the profit point of view, as is its evolution in recent months. On the other hand, if it soon exceeded the barrier of 30 euros, it could even enter the figure of free rise. That is, the most beneficial for the interests of small and medium investors. Because it would no longer have resistance ahead and it could revalue more easily. In any of the cases, this construction company is the one that is having the best performance within this important sector.
Strong presence abroad
It could benefit from its high presence in North America, via concessions, which represents 60% of our valuation. On the one hand, the good macro data suggests that The United States will continue in the expansion phase. On the other hand, the latest statements by members of the Federal Reserve lead us to expect continuity in the current accommodative monetary policy. In this scenario, Ferrovial could benefit from both improved traffic and inflation and lower financing costs.
Ferrovial has announced for 2019 a dividend of 0,74 euros per share (vs. 0,721 in 2018) and a share buyback program of 275 million euros (repeating the figure presented in 2018). The estimated dividend yield for 2019 is 3,4%.
Reduce your losses by 72 million
Ferrovial, a global infrastructure operator, achieved a net result of -2019 million euros in the first half of 6, compared to -72 million euros the previous year, due to the impact of the provision of 345 million euros to cover the possible losses of some construction contracts in the United States. The RBE stands at -116 million euros, which, eliminating this provision, would rise to 229 million euros. It has also been influenced by the change in perimeter as the Services division is classified as “held for sale”.
On the other hand, the main infrastructure assets of the company maintained a good performance, highlighting the Texas Managed Lanes. Likewise, in the semester there were sales of 2.603 million euros with 82% coming from international markets. The company received 244 million euros in dividends distributed by the assets in which it participates: the 407 ETR distributed 500 million Canadian dollars, Heathrow 200 million pounds and AGS 20 million pounds. Dividends from toll roads increased 10%. The company also announced that the NTE will pay out its first dividend this year.
In this quarter, including the services division, net cash ex-infrastructure projects reached 482 million euros. Consolidated net debt reached 3.926 million euros. Where, the total construction portfolio reached 11.405 million euros, the company's historical maximum, with 88% coming from outside Spain. It does not yet incorporate more than 1.250 million euros for international construction projects.