If there is a security that shows an impeccable upward trend, it is none other than the ACS construction company. To the point that it shows a really flawless technical look and to all the terms of permanence: short, medium and long. So that small and medium investors can take positions in the security without any kind of problems. Beyond the logical corrections in their prices that will be imposed in the next trading sessions. Something healthy to some extent to conform to the law of supply and demand.
Its price in the national equity markets is currently moving at levels very close to 41 euros per share. After having exceeded the important barrier of 40 euros and there are not a few analysts in the financial markets who believe that it may go to levels close to 50 euros in the coming days. In other words, it has a more than acceptable revaluation potential and almost anywhere near that offered by other values of the national equity index.
While on the other, it does not provide excessive risks to open positions due to the enormous stability in its business lines and that have materialized in the signing of new contracts. As for example, the one carried out a few days ago to operate in the United States and that without a doubt can give the value a new impetus to continue its impressive price climb. To the point that it has become one of the most profitable equities in our country. With a revaluation that this year has been in the double digits.
Renewables IPO
The ACS Group is studying the creation of a subsidiary for the development of renewable energy assets, which may, where appropriate, be listed on the stock markets. On the other hand, this initiative aims to facilitate the development of energy projects in very competitive price conditions, thus contributing to the reduction of emissions in line with the Sustainable Development goals of the Global Agenda 2030.
This initiative puts the interest of the group chaired by Florentino Pérez in the emerging renewable energy sector. With a very determined bet that it can be very profitable for small and medium investors for the medium and long term. With a foreseeable increase in the price of its shares in this long term of permanence. Where there is no doubt that it is a company that has known how to adapt to the new scenario presented by the international economy and very specifically that represented by construction companies. Where ACS is precisely one of the reference points for small and medium investors.
New ACS contract
The ACS Group, through Prince Contracting, a subsidiary of Dragados, has received from the Florida Department of Transportation (FDOT) the notification of intention to award the design and construction of the E4T19 Phase 3B-2 project on the I-95 highway, in the Broward and Palm Beach counties. The project is Phase 3 of the 95-mile (29 km) I-46.7 Express program. Specifically, will go from Stirling Road, in Broward County, to Linton Boulevard, in Palm Beach County.
The purpose of the I-95 expressways is to improve mobility, alleviate traffic congestion, and increase service. It also intends to offer additional travel options, adjust to the future growth and development of the region as well as the improvement of emergency evacuation routes and the connectivity system between various urban and industrial centers north of the city of Fort Lauderdale. This notification confirms the success of the ACS Group in Florida, this being the third consecutive stretch of I-95 that it would be awarded to Prince in the last 3 years; Since it is building section 3A-2 and section 3B-1, adding the three projects represents an operation of 366 million euros.
Denied about press news
On the other hand, the ACS Group communicates that the information published today by El Confidencial in which it is stated that ACS has lent 462 million euros to the vice president of the company, Mr. Pedro López Jiménez, is absolutely false and clearly malicious. The bad intention of the article is based on the numerical dance of two data in two consecutive lines of the Annual Corporate Governance Report 2018, that of the director Javier Echenique, as vice president of Banco Sabadell, a bank that has carried out loan and credit operations with the Group ACS for 462.491 thousand euros and that of the director Pedro López Jiménez who has received 759 thousand euros through his equity company FAPIN MOBI in the collection of dividends.
Not surprisingly, the aggressive policy that the national construction company is carrying out to deny all kinds of unsubstantiated news that are appearing in the different media cannot be forgotten. And this is something that is satisfying the wishes of small and medium investors who they trust the management of the company despite the great shadows that continue to weigh on it. Beyond other kinds of technical considerations and maybe also from the point of view of its fundamentals.
Consolidated results
ACS Group sales in 2018 have reached 36.659 million euros, which represents an increase of 5,0% and 9,7% in comparable terms, that is, without considering the variation in the average exchange rate due to the appreciation of the euro against other currencies in the last twelve months. This positive evolution of all activities is mainly based on the growth of the North American, Australian and Spanish markets.
The geographical distribution of sales shows the broad diversification of the Group, where North America represents 45% of sales, Europe 21%, Australia 20%, Asia 7%, South America 5% and Africa the remaining 1%. Sales in Spain account for 14% of total sales. While on the contrary, 82% of sales are concentrated in six countries: the United States with 39% of the total, Australia (20%), Spain (14%), Canada (4%), Mexico and Germany, both with 3%. The rest of Europe finally reaches 4% of total sales. Wherein, the Group's attributable net profit stands at 915 million euros, with a nominal growth of 14,1%.
Positions can still be opened
The question that small and medium investors are subject to is whether they may be late to open positions in the value of construction. It might seem from the outset that this is the case, but the analysis of expert analysts in the equity markets says the opposite. That is to say, that positions can still be opened in value for the simple reason that its value may continue to grow for years to come. Although perhaps not with the intensity of how they have been doing it until now. In any case, there is no doubt that it still has a significant upward trajectory from which a good part of small and medium-sized investors can benefit.
While on the other hand, it cannot be forgotten that it is one of the most stable values within the powerful construction sector in Spain. Where there is a bunch of good companies that are listed in the selective index of national equities, the Ibex 35. Although not with luck and especially with the profitability that ACS has done. On the other hand, it also distributes dividends among its shareholders, although at lower levels than other companies. With an interest rate that approaches 5% through a fixed and guaranteed payment every year.
With high volume of recruitment
If the shares of this construction group are characterized by something, it is by their high liquidity since many titles are traded in the exchange market every day. In this way, it is much easier to adjust prices entry and exit from equity markets. Being a proposal on the stock market that is increasingly aimed at a very clearly defensive or conservative investor profile who does not want to experience great risks in their operations on the stock market.
On the other hand, it is backed by the special support of the recommendations on the part of the different financial agents who trust the value very clearly. Something that does not happen with other very relevant representatives of the Ibex 35. Being in any case, one of the options that we have at the moment to make our investments profitable with special success. As has been shown in recent months in its price and that has led to its valuation being above 40 euros. Being a proposal on the stock market that is increasingly aimed at a very clearly defensive or conservative investor profile who does not want to experience great risks in their operations on the stock market.