Shares in ACS, Actividades de Construcción y Servicios, S.A. show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
● The company's MSCI ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.42 for the 2025 fiscal year.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Analyst opinion has improved significantly over the past four months.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● Low profitability weakens the company.
● The company appears highly valued given the size of its balance sheet.
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ACS, Actividades de Construcción y Servicios, S.A. is one of Spain's leading construction groups. The activity is mainly organized around 3 sectors:
- construction of infrastructures and buildings: civil engineering infrastructures (primarily highways, hydraulic constructions and railroads), non-residential and residential buildings;
- services: cleaning, waste collection and treatment. Moreover, the group offers maintenance services of urban and industrial infrastructures, port and logistical services, and also social services and personal assistance services.
- industrial services: development, construction, installation and maintenance of distribution networks of electricity, gas and water, industrial production systems, telecommunication networks, road traffic control systems, etc.
Net sales are distributed geographically as follows: Spain (8.7%), the United States (57%), Australia (21.2%), Canada (3.9%), Germany (2.4%) and other (6.8%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
