Yahoo Finance Brief Commentary On ACS Actividades de Construcción y Servicios, SA.’s (BME:ACS) Fundamentals
I’ve been keeping an eye on ACS Actividades de Construcción y Servicios, SA. (BME:ACS) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ACS has a lot to offer. Basically, it is a financially-sound company with a a great track record of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on ACS Actividades de Construcción y Servicios here.
Outstanding track record and good value
In the past couple of years, ACS has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 32.46%, which is what investors like to see! ACS’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ACS has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. ACS’s has produced operating cash levels of 0.25x total debt over the past year, which implies that ACS’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
ACS is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ACS’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the construction industry, ACS is also trading below its peers, relative to earnings generated. This supports the theory that ACS is potentially underpriced.
Next Steps:
For ACS Actividades de Construcción y Servicios, I’ve compiled three key factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for ACS’s future growth? Take a look at our free research report of analyst consensus for ACS’s outlook.
Dividend Income vs Capital Gains: Does ACS return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ACS as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ACS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
