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1. Company Snapshot

1.a. Company Description

Strabag SE, together with its subsidiaries, operates as a construction company.The company engages in the construction of road, rail, and canal bridges; commercial and industrial facilities; hydroelectric power plants, storage power plants, hydraulic power plants, concrete gravity dams, earth-filled and rock-filled embankment dams, reservoirs, external asphalt sealing, asphalt core sealing, thermal power plants, wind farms, and electrical substations; and administration buildings, events and cultural centers, museums, hospitals, rehabilitation centers, retirement and nursing homes, universities, schools, kindergartens, fire and rescue centers, and churches.It also constructs prefabricated elements, civil engineering projects, metal constructions, water environmental technologies, and housing projects.


In addition, the company undertakes transportation infrastructure projects, including railway construction, construction material, sewer engineering, pipe and sewer construction, town planning and landscape architecture, paving, large surfaces, rock engineering and protective structures, ground engineering, sports and recreational facilities, road construction, earthworks, traffic engineering, and waterway construction projects.Further, it undertakes infrastructure development; engages in the operation, maintenance, and marketing of public-private partnerships projects; and provision of real estate development and tunneling services, as well as property and facility services, such as property management and corporate real estate solutions, area management, renting and letting, technical facility management and building management, infrastructural facility management, and industrial services.The company offers its services primarily in Europe, the Arabian Peninsula, Africa, Asia, and the Americas.


Strabag SE was founded in 1835 and is headquartered in Villach, Austria.

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1.b. Last Insights on STR

The recent performance of Strabag SE has been impacted by unfavorable market conditions. The pan-European STOXX Europe 600 Index has faced a downturn, partly due to economic uncertainty and a stronger euro. Additionally, political turmoil in France has affected investor sentiment. Strabag's growth prospects may be influenced by its recent purchase agreement with Stumpp Group, aimed at enhancing its capabilities in the infrastructure projects market. Amidst these challenges, European markets are seeking stability, with a focus on dividend stocks with strong fundamentals.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Nov -14

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Top 3 European Dividend Stocks To Watch

Jul -30

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STRABAG reaches purchase agreement with Stumpp Group

Jul -24

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Strabag wins $423m contracts to upgrade Czech railway infrastructure

Jul -01

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Jun -06

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.89%)

6. Segments

South + East

Expected Growth: 1.8%

South and East segments of Strabag SE, with 1.8% growth, are driven by increasing infrastructure investments, urbanization, and government-backed projects in Eastern Europe, as well as a growing demand for transportation infrastructure in Southern Europe, fueled by EU funding and economic recovery.

North + West

Expected Growth: 1.9%

North + West segment of Strabag SE, with 1.9% growth, is driven by increasing infrastructure investments in Germany and Austria, coupled with a strong pipeline of transportation projects. Additionally, the segment benefits from a growing demand for residential and commercial construction, as well as a focus on sustainable and environmentally-friendly projects.

International + Special Division

Expected Growth: 2.1%

Strabag SE's International + Special Division growth of 2.1% is driven by increasing infrastructure investments in Eastern Europe, Middle East, and North Africa, coupled with a strong order backlog in tunnel construction and transportation infrastructure projects. Additionally, the division's focus on sustainable and environmentally-friendly solutions is attracting new clients and projects.

Other

Expected Growth: 1.7%

Strabag SE's 1.7% growth in 'Other' segment is driven by increasing demand for infrastructure development, government investments in transportation and energy projects, and strategic acquisitions expanding the company's service portfolio. Additionally, cost savings initiatives and operational efficiencies contribute to the segment's growth.

7. Detailed Products

Transport Infrastructure

Design, construction, and maintenance of roads, highways, bridges, and tunnels

Building Construction

Design, construction, and renovation of residential and commercial buildings, including offices, hotels, and hospitals

Civil Engineering

Design, construction, and maintenance of water supply systems, sewage systems, and flood protection structures

Environmental Technology

Design, construction, and operation of waste management facilities, landfills, and recycling plants

Railway Construction

Design, construction, and maintenance of railway infrastructure, including tracks, stations, and signaling systems

Specialized Civil Engineering

Design, construction, and maintenance of specialized infrastructure, including airports, ports, and industrial facilities

8. Strabag SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Strabag SE is moderate due to the availability of alternative construction materials and services.

Bargaining Power Of Customers

The bargaining power of customers is low for Strabag SE due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Strabag SE due to the company's dependence on a few large suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low for Strabag SE due to the high barriers to entry in the construction industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high for Strabag SE due to the competitive nature of the construction industry, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.99%
Debt Cost 6.90%
Equity Weight 88.01%
Equity Cost 6.90%
WACC 6.90%
Leverage 13.63%

11. Quality Control: Strabag SE passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bouygues

A-Score: 6.9/10

Value: 8.2

Growth: 5.3

Quality: 3.7

Yield: 8.1

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
ACS

A-Score: 6.9/10

Value: 5.8

Growth: 6.6

Quality: 4.4

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

Stock-Card
Strabag

A-Score: 6.6/10

Value: 8.1

Growth: 4.7

Quality: 6.2

Yield: 8.1

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Stock-Card
HOCHTIEF

A-Score: 6.1/10

Value: 5.3

Growth: 6.6

Quality: 4.8

Yield: 5.6

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Budimex

A-Score: 4.5/10

Value: 2.4

Growth: 4.8

Quality: 5.4

Yield: 8.8

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Stock-Card
Arcadis

A-Score: 4.3/10

Value: 4.7

Growth: 6.3

Quality: 5.8

Yield: 3.1

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.5$

Current Price

78.5$

Potential

-0.00%

Expected Cash-Flows