What moat does ACS, Actividades de Construcción y Servicios have?

The contracting advantage is the ability to deliver a large project and the relationship with the client who orders it. It is won and lost contract by contract. It is not a right to charge on a road. The concessions piece inherits the toll moat, and only to the extent of the stake. It narrows if the works margin disappears into costs or if the concession does not distribute.

How do you read the ACS, Actividades de Construcción y Servicios radar?

Health has to be read in the parent's debt and in the concessions' debt, not as one pool of cash. Quality is the construction margin, which is narrow, plus what comes up from Abertis. Growth is the works backlog and toll traffic, not a software curve. Valuation mixes a contractor, which is looked at through orders, with a concession, which is looked at through the contract. Shareholder return is crossed with the scrip: a dividend in shares is not the same as cash.

Which multiples matter for ACS, Actividades de Construcción y Servicios?

The P/E of an exceptional contracting year is not normal earnings. EV/EBITDA has to be read knowing which debt sits inside. Cash flow after the works and after what the stake distributes is the figure. Do not set it next to Inditex's P/E or next to a pure concession. A dash means ACS.MC is missing from the cache.

What does this ACS, Actividades de Construcción y Servicios analysis leave out?

Not advice on ACS.MC. Vaultflake does not value a works contract or the Abertis stake. This is not an inventory of concessions and not a scrip calendar. Read the CNMV filings. A past dividend is not a right. The table is cache, not a target price.

ACS, Actividades de Construcción y Servicios (ACS.MC) analysis

ACS, Actividades de Construcción y Servicios, S.A.

Sector:Industrials · Construction and Concessions

Country:Spain

Profile and moat

ACS puts construction together with a stake in concessions. The contracting arm, with Turner in the United States and Hochtief, bills projects. Construction margin is thin and the works contract ends when the job is handed over. It is not Ferrovial's toll, where the value is charging for years on a corridor already built.

The stake in Abertis brings ACS closer to that toll: motorways with a contract, a toll and an end date. This report does not say ACS controls Abertis and does not state a percentage. Cash that reaches ACS depends on what that stake can distribute and on what the contracting arm leaves.

The dividend has been part of the story, sometimes as a scrip. Scrip dilutes if the holder does not reinvest. This report does not state payment dates and does not say the balance sheet is net cash. Compare ACS with Ferrovial so the contractor is not confused with the concession.

ACS, Actividades de Construcción y Servicios (ACS.MC) analysis

ACS, Actividades de Construcción y Servicios, S.A.

Sector:Industrials · Construction and Concessions

Country:Spain

ACS, Actividades de Construcción y Servicios (ACS.MC) analysis

Profile and moat

ACS, Actividades de Construcción y Servicios (ACS.MC) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does ACS, Actividades de Construcción y Servicios have?

How do you read the ACS, Actividades de Construcción y Servicios radar?

Which multiples matter for ACS, Actividades de Construcción y Servicios?

What does this ACS, Actividades de Construcción y Servicios analysis leave out?

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