FERFerrovial N.V.
Is the business good?
The checks split: earnings fully cash-backed (1.7×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 15% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FER?
Ferrovial N.V. earns 8.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.24 points below what the capital costs: growth destroys value
- Operating margin
- 15%
Operating margin · Engineering & Construction median 7.5% · fiscal year to FY2025
- Cash conversion
- 1.67×
Cash conversion · 0.43× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.76%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2022 | 5.6% |
| FY2023 | 7.3% |
| FY2024 | 34% |
| FY2025 | 15% |
Details›
- Gross marginfiscal year to FY2025
- 88%
- Operating marginfiscal year to FY2025
- 15%
- Net marginfiscal year to FY2025
- 9.2%
- Revenue, trailing twelve months
- $9.63B
- Net income, trailing twelve months
- $888M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Engineering & Construction
Ranks #14 of 25 by RyuScore