ACS Actividades de Construccion y Servicios SA
🇪🇸 ACS.MC · Madrid · ES0167050915
Infrastructure
EUR 125.85 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
32.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 125.85 ÷ 3.86 = 32.6
TTM period through: 2026-03-31
Forward P/E (estimated): 31.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 33.0
Yield (Fwd)
1.60%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.60%
Div. Growth (5Y CAGR)
-0.4%
Growth Streak
1 yrs
Consecutive years of increase
Payout (Fwd)
52.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 44.2%
Cash Flow Payout (TTM): 13.8%
FCF Coverage (TTM): 5.48x
ROE
24.6%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
9.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
ACS is a high-quality global infrastructure leader with an exceptionally strong balance sheet and robust underlying cash generation. While the stock trades at a reasonable P/FFO of 13.0x, the low 1.6% yield and impending long-term concession cliffs limit its appeal for pure income-focused portfolios. Existing shareholders should maintain positions given the strong fundamental cash flows, but new dividend investors may want to monitor the stock until a higher starting yield presents itself.
Sector Context
ACS Actividades de Construcción y Servicios is a leading global civil engineering and infrastructure company, deriving substantial cash flows from its massive construction operations and its joint control of the global toll-road operator Abertis. In the infrastructure sector, massive non-cash depreciation and amortization charges heavily distort traditional P/E ratios (currently 32.6x), making Price to Funds From Operations (P/FFO) the most accurate metric for evaluating true operating cash flow and dividend sustainability.
📊 Strategy Analysis
- • Valuation is attractive on a cash-flow basis, trading at a P/FFO of 13.0x (within the fair value range of €116-€174), which is the appropriate metric for capital-heavy infrastructure.
- • Exceptionally conservative leverage profile with a Net Debt/EBITDA ratio of 0.7x, providing significant financial flexibility for strategic transitions.
- • Highly secure dividend coverage, with cash flow and AFFO payout ratios below 15%, ensuring the distribution is easily funded by operations despite GAAP earnings volatility.
⚠ What to Watch
- • The current dividend yield of 1.60% is substantially below the target minimum for income-focused portfolios, limiting immediate appeal for dividend investors.
- • Severe structural headwinds loom with the impending expiration of highly lucrative Abertis French toll concessions (SANEF in 2031, SAPN in 2033), compounded by the recent early termination of the Houston SH-288 contract.
- • GAAP earnings have seen a 5-year CAGR decline of -19.2%, and the company has executed several strategic dividend cuts (2021, 2022, 2024) to realign capital allocation.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-06-06
Disclaimer: This information is for educational purposes only. Not financial advice.