The French construction and concessions company could break a revenue record this year and record its best net profit since 2007. Multiples of 9 times are paid for its profits and the potential of the stock is close to 50%. | All about the fund advised by elEconomista.es, Tressis Cartera Eco30 .
What makes a country great? For some, they are the conquests of the past or sports feats; but it is rather the small struggles and sometimes silent demands that define the character of a people. For example, that a child with a rare disease has access to a very expensive treatment; that the elderly be treated with dignity in residences and in banks, or that justice be done for the victims of railway accidents.
Likewise, what makes companies great? They are not all capitalist ogres. There are those that row in the same direction as their workers and generate profits with which they improve the environment . In addition to reducing their polluting emissions and managing waste, some even turn the employee into an owner .
An example of the latter is Eiffage , a French construction and concessions group. Every year, it offers a volume of new shares to its employees under favorable conditions, with a 20% discount on the share price and automatic reinvestment of dividends in the company’s investment fund (FCPE).
Around 13% of Eiffage’s share capital is held by its employees , according to Bloomberg . By comparison, BlackRock owns 2.67% of the outstanding shares and BNP Paribas 0.66%. Last year, almost 51,200 group employees (59% of the total) participated in the share subscription campaign -an unprecedented mobilization, according to Eiffage-, with an average contribution of 3,712 euros.
Precisely, the Eiffage share has lost 10% so far this year and is trading at 81 euros, although it has not exceeded its maximum prior to Covid: 103.9 euros. However, it could reach 118 euros in the next twelve months, which would imply a 46% bullish potential in the stock market , according to the consensus of analysts collected by FactSet.
With these expectations, the market discounts, on the one hand, record income this year estimated at 19,800 million , which would exceed 20,000 million next year. On the other hand, 876 million net profit in 2022, the highest figure since the extraordinary 1,000 million registered in 2007.
All this, with a price/earnings ratio of around 9 times for this year and next – one of the lowest ratios in the sector in Europe and the US, and somewhat more attractive than that of ACS and Vinci.
“Order intake remains strong, with a variety of sub-segments providing growth, particularly projects related to energy efficiency and renovation,” says Barclays.
To this adds Bloomberg that there are “two important multi-year contracts on the environmental transition secured, which will soon be added to Eiffage ‘s record order book of 18,000 million euros “, which could increase sales until 2024. They also point to a catalyst to long term the Grand Paris Express project , which extends the metro lines to connect the cities that surround the French capital.