Sacyr, S.A. (SCYR.MC) | Investment Case

1. Company Snapshot

1.a. Company Description

Sacyr, S.A. engages in the construction and infrastructure concession services businesses worldwide.The company operates through Concessions, Engineering and Infrastructure, and Services divisions.It offers various construction services comprising civil engineering and buildings, as well as engineering and construction, and maintenance of industrial and oil and gas facilities.

The company also engages in motorway, transport hub, airport, and hospital concessions business.In addition, it develops conventional and renewable energy facilities, photovoltaic and geothermal plants, and biomass energy systems; maintains power plants and industrial facilities; and designs, constructs, and operates waste treatment and waste-to-power plants, as well as manages processing plants and equipment.Further, the company engages in the implementation of refinery, chemical and petrochemical, gas handling and treatment, and liquefied natural gas projects; transportation and storage of fuels; and engineering development and construction of high-voltage electricity lines and electricity substations, as well as maintenance of medium and high-voltage electricity lines.

Additionally, it offers environmental work and regeneration services; integrated water cycle management, water purification, desalination, and recycling services; facility management and maintenance, building cleaning, and ancillary services; and mining services, as well as involved in street cleaning; waste collection; sludge treatment; gardening and maintenance of green areas; parking meter management; towing; bicycle rental; and removal of vehicles from public thoroughfares.Sacyr, S.A. also engages in real estate development activities; the provision of catering services; and the operation of restaurants and hotels, petrol stations, and retail outlets.The company was formerly known as Sacyr Vallehermoso S.A. and changed its name to Sacyr, S.A. in August 2013.

Sacyr, S.A. is headquartered in Madrid, Spain.

Show Full description

1.b. Last Insights on SCYR

Sacyr's recent momentum stems from steady business progress. Although there's no single major event, investors are reassessing the company's prospects. Its valuation appears attractive, prompting investors to reevaluate its growth potential. With no significant announcements, the fluctuations suggest shifting market sentiment. Sacyr's ability to maintain steady gains without major news indicates underlying strength. Its recent performance may signal a deeper story unfolding.

1.c. Company Highlights

Last Price	3.81
Change Percentage	-0.88%
Open	3.84
Previous Close	3.84
Market Cap ( Millions)	3016
Volume	4789552
Year High	4.01
Year Low	2.52
M A 50	3.81
M A 200	3.55

FCF Yield	0.00%
Dividend Yield	3.23%
ROE	9.52%
Debt / Equity	991.53%
Net Debt / EBIDTA	594.68%
Price To Book	3.33
Price Earnings Ratio	32.73
Price To FCF	0
Price To sales	0.64
EV / EBITDA	8.37

2. Sacyr's Q3 2025 Earnings: A Strong Performance Driven by Concessions

Sacyr reported a robust financial performance in Q3 2025, with revenue growing 5% to EUR 3.412 billion, primarily driven by the strength of their concession model. The company's net profit, excluding divestments in Colombia, rose 81% to EUR 134 million. Operating cash flow increased 11% to EUR 890 million, and equity invested in concessions reached EUR 2.017 billion. The company's EBITDA margin also expanded, as highlighted by CFO Carlos Mijangos, who noted the strong operating cash flow and the overall financial health of the company.

Publication Date: Nov -16

                                    📋 Highlights
                                    Revenue Growth::
                                                Increased 5% to EUR 3.412 billion, driven by the concession model.
Net Profit Surge::
                                                Excluding Colombia divestments, net profit rose 81% to EUR 134 million.
Operating Cash Flow::
                                                Up 11% to EUR 890 million, with EUR 1.3 billion expected by year-end.
New Concessions::
                                                Secured four projects in Italy, Chile, and Paraguay, boosting backlog by 15%.
Investment-Grade Rating::
                                                Achieved from Morningstar DBRS, supporting lower financing costs and USD 1.6 billion from Colombia divestment.

                                

Segmental Performance

In the first nine months, concessions revenue was EUR 1.266 billion, up 2% year-on-year. The Engineering & Infrastructure division's revenue grew 12% to EUR 2.205 billion, with EBITDA rising 42% to EUR 407 million. The Water division posted double-digit growth, with revenue up 17% and EBITDA up 23%, driven by projects like the Antofagasta concession in Chile and growth in Australia.

Growth Opportunities and Strategic Focus

Sacyr was awarded four new concession projects in Italy, Chile, and Paraguay, representing a success in backlog growth. The company is pursuing growth opportunities in strategic markets, focusing on English-speaking countries, particularly North America and Australia. The construction backlog has risen by 15% and does not include the Messina Bridge project, indicating a strong pipeline of future revenue.

Valuation and Dividend

With a P/E Ratio of 32.1 and an EV/EBITDA of 8.32, the market appears to be pricing in Sacyr's growth prospects. The company's Dividend Yield stands at 3.29%, and it plans to distribute EUR 225 million between 2025 and 2028, with a year-on-year increase in dividend, subject to Board approval. The ROIC of 5.12% and ROE of 9.52% indicate a reasonable return on capital and equity.

Outlook and Debt Profile

Sacyr expects to post EUR 1.3 billion in operating cash flows by the end of the year, driven by new projects. The divestment of three concession assets in Colombia will generate USD 1.6 billion, leading to a marked decrease in recourse debt. The company has obtained an investment-grade rating from Morningstar DBRS, facilitating access to financing sources and reducing costs.

3. NewsRoom

Sacyr SA (FRA:VHM) Q3 2025 Earnings Call Highlights: Strong Growth Amidst Strategic Challenges

Nov -08

Source:

Sacyr (BME:SCYR): Evaluating Valuation After Notable Share Price Fluctuations

Sep -20

Source:

Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

Source:

Vaisala Corporation: Share Repurchase 9.9.2025

Sep -09

Source:

Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

Source:

Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

Source:

Is Vaisala (HLSE:VAIAS) Undervalued? A Fresh Look at Its Current Valuation

Sep -09

Source:

Has Evotec’s 29.5% Price Drop Created a New Opportunity for 2025?

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.64%)

6. Segments

Construction

Expected Growth: 2.5%

Sacyr, S.A.'s 2.5% growth in construction is driven by increasing infrastructure investments, urbanization, and government-backed projects. Additionally, the company's strategic focus on sustainable and renewable energy solutions, as well as its expansion into new markets, contribute to its growth momentum.

Concessions

Expected Growth: 2.8%

Sacyr, S.A.'s concessions segment growth of 2.8% is driven by increasing infrastructure investments, government initiatives for public-private partnerships, and a strong pipeline of projects in transportation and energy sectors. Additionally, the company's diversification strategy, operational efficiency, and cost savings initiatives also contribute to the growth.

Services

Expected Growth: 3.2%

Sacyr, S.A.'s 3.2% growth in services is driven by increasing demand for infrastructure development, urbanization, and government investments in transportation and energy projects. Additionally, the company's focus on innovation, digitalization, and sustainability initiatives has improved operational efficiency and attracted new clients.

Consolidation Adjustments

Expected Growth: 0.5%

Sacyr, S.A.'s 0.5% consolidation adjustments growth is driven by increased infrastructure project execution, cost savings from synergies, and improved operational efficiency. Additionally, the company's focus on renewable energy and concessions has contributed to the growth, along with a favorable regulatory environment and strategic partnerships.

Others

Expected Growth: 2.2%

Sacyr, S.A.'s 2.2% growth is driven by increasing infrastructure investments, government-backed projects, and strategic acquisitions. The company's diversified business model, including concessions, construction, and services, also contributes to its growth. Additionally, cost savings initiatives and operational efficiencies have improved profitability, supporting the company's expansion.

7. Detailed Products

Infrastructure Concession

Sacyr Concesiones is a leading company in the development of infrastructure concessions, managing a portfolio of 25 concessions in 7 countries.

Construction

Sacyr Construction is a leading construction company, specializing in civil engineering, building, and industrial construction.

Industrial Engineering

Sacyr Industrial is a leading company in industrial engineering, specializing in the design, construction, and operation of industrial facilities.

Services

Sacyr Services provides a range of services, including maintenance, operation, and management of infrastructure and industrial facilities.

Renewable Energy

Sacyr Renewable Energy is a leading company in the development and operation of renewable energy projects, including wind, solar, and hydroelectric power.

8. Sacyr, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Sacyr, S.A. is medium due to the presence of alternative infrastructure development companies.

Bargaining Power Of Customers

The bargaining power of customers for Sacyr, S.A. is low due to the company's strong reputation and long-term contracts.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Sacyr, S.A. is medium due to the company's dependence on raw materials and equipment suppliers.

Threat Of New Entrants

The threat of new entrants for Sacyr, S.A. is high due to the growing demand for infrastructure development and the ease of entry into the market.

Intensity Of Rivalry

The intensity of rivalry for Sacyr, S.A. is high due to the presence of established competitors and the high stakes in the infrastructure development industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	91.18%
Debt Cost	10.84%
Equity Weight	8.82%
Equity Cost	10.84%
WACC	10.84%
Leverage	1033.90%

11. Quality Control: Sacyr, S.A. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Balfour Beatty

A-Score: 6.5/10

Value: 5.8

Growth: 6.1

Quality: 4.5

Yield: 4.4

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

Acciona

A-Score: 6.4/10

Value: 5.4

Growth: 7.6

Quality: 3.9

Yield: 5.6

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

Sacyr

A-Score: 6.2/10

Value: 5.6

Growth: 5.7

Quality: 3.4

Yield: 7.5

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

Webuild

A-Score: 5.9/10

Value: 7.0

Growth: 6.6

Quality: 2.9

Yield: 5.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

Skanska

A-Score: 5.8/10

Value: 6.2

Growth: 4.1

Quality: 5.4

Yield: 5.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

SPIE

A-Score: 5.7/10

Value: 4.4

Growth: 6.1

Quality: 3.4

Yield: 4.4

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.30%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.84%

Sacyr, S.A. - ES0182870214

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SCYR

1.c. Company Highlights

Lower Growth

Less Volatile

Average Yield

Average Quality

Higher Yield

Stable Momentum

Average Growth

Lower Quality

Revenues Beats

2. Sacyr's Q3 2025 Earnings: A Strong Performance Driven by Concessions

Segmental Performance

Growth Opportunities and Strategic Focus

Valuation and Dividend

Outlook and Debt Profile

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.64%)

6. Segments

Construction

Expected Growth: 2.5%

Concessions

Expected Growth: 2.8%

Services

Expected Growth: 3.2%

Consolidation Adjustments

Expected Growth: 0.5%

Others

Expected Growth: 2.2%

7. Detailed Products

Infrastructure Concession

Construction

Industrial Engineering

Services

Renewable Energy

8. Sacyr, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Sacyr, S.A. passed 2 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.81$

Current Price

3.81$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA