| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 44.90 | 8 |
| Intrinsic value (DCF) | 42.32 | 1 |
| Graham-Dodd Method | 23.90 | -43 |
| Graham Formula | 59.50 | 43 |
Ferrovial, S.A. is a leading global infrastructure and mobility operator headquartered in Madrid, Spain. With a diversified portfolio spanning construction, toll roads, airports, and urban mobility solutions, Ferrovial plays a pivotal role in the Industrials sector, specifically within Infrastructure Operations. The company operates across key markets including the United States, Poland, Spain, the United Kingdom, and Canada. Ferrovial's expertise encompasses the design, construction, and maintenance of critical infrastructure such as highways, railways, airports, and water treatment plants. Additionally, it provides innovative mobility services like ZITY, an electric carsharing platform. Founded in 1952, Ferrovial has established itself as a trusted partner for public and private infrastructure projects, leveraging its technical prowess and sustainable practices. The company's robust financial position, with a market capitalization of approximately €18.8 billion, underscores its stability and growth potential in the global infrastructure market.
Ferrovial presents a compelling investment case due to its diversified infrastructure portfolio and strong market presence in high-growth regions. The company's revenue of €8.51 billion and net income of €439 million in FY 2023 reflect its operational efficiency. With a solid operating cash flow of €1.26 billion and substantial cash reserves of €4.76 billion, Ferrovial is well-positioned to fund future projects and manage its €11.58 billion debt load. However, investors should note the company's beta of 0.938, indicating moderate volatility relative to the market. The dividend yield, with a payout of €0.0346 per share, may appeal to income-focused investors. Risks include exposure to geopolitical and regulatory changes in its operating regions, as well as the capital-intensive nature of infrastructure projects.
Ferrovial's competitive advantage lies in its integrated business model, combining construction, concessions, and services under one umbrella. This vertical integration allows the company to control project lifecycles from design to operation, enhancing efficiency and profitability. Its expertise in Public-Private Partnerships (PPPs) and toll road concessions provides stable, long-term revenue streams. Ferrovial's innovation in mobility solutions, such as ZITY, positions it as a leader in sustainable urban transport. The company's strong foothold in the U.S. and European markets diversifies its geographic risk. However, competition in the infrastructure sector is intense, with rivals often leveraging larger scale or specialized expertise. Ferrovial's ability to secure high-margin projects and maintain cost discipline will be critical in sustaining its competitive edge. Its focus on sustainability and digital transformation further differentiates it from traditional infrastructure players.