| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.49 | -33 |
| Intrinsic value (DCF) | 15.92 | -55 |
| Graham-Dodd Method | 15.92 | -55 |
| Graham Formula | 28.63 | -18 |
PORR AG is a leading European construction company headquartered in Vienna, Austria, with a rich history dating back to 1869. Operating across multiple countries including Austria, Switzerland, Germany, Poland, and the UAE, PORR provides comprehensive construction services spanning building construction, civil engineering, infrastructure, and environmental engineering. The company specializes in diverse projects such as residential and commercial buildings, healthcare facilities, railway construction, tunnel building, and sustainable urban development. PORR also offers design and engineering services, including BIM (Building Information Modeling) and LEAN management, emphasizing innovation and efficiency. With a strong presence in Central and Eastern Europe, PORR leverages its expertise in large-scale infrastructure projects and sustainable construction practices. The company's diversified portfolio and international footprint position it as a key player in the Engineering & Construction sector, catering to both public and private clients. PORR's commitment to sustainability and technological advancement makes it a competitive force in the evolving construction industry.
PORR AG presents a stable investment opportunity within the industrials sector, supported by its diversified revenue streams and strong market presence in Central Europe. The company's solid revenue base (€6.19B in FY 2024) and net income (€105.6M) reflect steady operational performance. PORR's low beta (0.83) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, the construction industry is highly cyclical and sensitive to economic downturns, which could impact future project pipelines. PORR's dividend yield (~3.2% based on a €0.90 dividend per share) adds income appeal, but investors should monitor debt levels (€585M) and capital expenditure trends. The company's international diversification mitigates regional risks, but geopolitical and regulatory challenges in emerging markets remain a consideration.
PORR AG competes in a fragmented but highly competitive construction market, where scale, technical expertise, and regional dominance are critical. The company's competitive advantage lies in its long-standing reputation, diversified service offerings, and strong foothold in Central and Eastern Europe. Unlike pure-play contractors, PORR integrates design, engineering, and construction, providing end-to-end solutions that enhance client stickiness. Its expertise in complex infrastructure projects (e.g., tunnels, railways) differentiates it from smaller regional players. However, PORR faces stiff competition from larger European construction firms with greater financial resources and global reach. The company's focus on sustainability (e.g., urban mining, remediation services) aligns with growing regulatory demands, but rivals with stronger R&D budgets may lead in green construction innovations. PORR's asset-light model and lean management practices improve margins, but reliance on public-sector contracts exposes it to budgetary constraints. Its mid-market positioning allows agility compared to conglomerates but limits its ability to bid on mega-projects dominated by giants like Vinci or Strabag.