Ferrovial SE Ordinary Shares (FER)

FairStock Score: 31/100 — RISKY

Key Financials

Strengths

• Generates $321 million in annual free cash flow (0.6% yield on market cap)
• Solid return on equity of 14.3% above cost of capital
• Established organization with 22,319 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($16) with negative 334% margin of safety—limited downside protection
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Ferrovial SE Ordinary Shares is a large-cap industrials company valued at $50.6 billion. Revenue stands at $9.6 billion. From a quality standpoint, Ferrovial shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and Altman Z-Score of 1.8 in the grey zone. On valuation, the stock is commanding a steep 48.9x multiple, with trades far above its Graham Number ($16) with no margin of safety. Growth dynamics show revenue growing at 8.5%. The 1.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 27/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $321 million in annual free cash flow (0.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 49x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer