I’ve been keeping an eye on Bouygues SA (EPA:EN) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EN has a lot to offer. Basically, it is a financially-robust company with a a strong history of performance, trading at a great value. 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 Bouygues here.
6 star dividend payer with excellent balance sheet
EN delivered a bottom-line expansion of 14.8% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did EN outperformed its past performance, its growth also surpassed the Construction industry expansion, which generated a 14.6% earnings growth. This is an notable feat for the company. EN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that EN has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. EN’s has produced operating cash levels of 0.37x total debt over the past year, which implies that EN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
EN’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Compared to the rest of the construction industry, EN is also trading below its peers, relative to earnings generated. This bolsters the proposition that EN’s price is currently discounted.
For Bouygues, I’ve compiled three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for EN’s future growth? Take a look at our free research report of analyst consensus for EN’s outlook.
- Dividend Income vs Capital Gains: Does EN 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 EN as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EN? 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 past 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. For errors that warrant correction please contact the editor at email@example.com.