Ferrovial S.A.
🇪🇸 FER.MC · Madrid · NL0015001FS8
Infrastructure
EUR 57.28 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
46.4
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: 57.28 ÷ 1.24 = 46.4
TTM period through: 2025-12-31
Forward P/E (estimated): 52.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 47.3
Yield (Fwd)
1.59%
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.
Net Debt/EBITDA (TTM)
4.5x
Latest quarter: 8.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 8.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
73.7%
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): 17.6%
Cash Flow Payout (TTM): 9.7%
FCF Coverage (TTM): 9.15x
ROE
14.3%
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
23.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Ferrovial is a global infrastructure leader managing premier toll roads and airports with exceptional cash flow generation. However, the extreme valuation at a P/E of 46x and a low 1.6% dividend yield make it fundamentally incompatible with our income-focused strategy. Not recommended for new positions, as better yield opportunities exist in more attractively valued infrastructure peers.
Sector Context
Ferrovial designs, builds, and operates large-scale infrastructure projects globally, primarily focusing on toll roads and airports. In the infrastructure sector, companies often enjoy monopoly-like characteristics and inflation-linked revenues due to long-term concession agreements. However, these asset-heavy businesses can carry significant debt, and extreme market premiums often compress dividend yields below levels suitable for income-focused investors.
📊 Strategy Analysis
- • Exceptional Free Cash Flow generation, with the current dividend consuming only 9.7% of FCF
- • Operates dominant infrastructure assets with high barriers to entry, delivering a solid ROE of 14.3%
⚠ What to Watch
- • Current P/E of 46.4x and EV/EBITDA of 24.0x indicate severe overvaluation relative to the strategy's 8-15x target range
- • Dividend yield of 1.59% fails to meet the core strategy requirement of a 3% minimum yield
- • Trading at €57.28, the stock sits massively above the monopoly-adjusted fair value upper bound of €22.24
📊 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: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.