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.

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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	4.11
Change Percentage	-1.67%
Open	4.15
Previous Close	4.18
Market Cap ( Millions)	3287
Volume	2663348
Year High	4.6
Year Low	2.52
M A 50	4.17
M A 200	3.8

FCF Yield	0.00%
Dividend Yield	2.06%
ROE	8.86%
Debt / Equity	825.15%
Net Debt / EBIDTA	497.92%
Price To Book	3.15
Price Earnings Ratio	38.22
Price To FCF	0
Price To sales	0.71
EV / EBITDA	7.48

2. Sacyr's 2025 Earnings: A Strong Performance

Sacyr's financial performance in 2025 was robust, with revenue reaching EUR 4.66 billion, a 12% year-on-year increase. EBITDA stood at EUR 1.358 billion, maintaining a margin of around 29%. Operating cash flow was EUR 1.359 billion, up 5% compared to 2024, demonstrating the company's ability to generate cash from its assets. The actual EPS was not disclosed, but the company's ability to generate cash is a positive indicator. As Manuel Manrique, Executive Chairman, stated, "We've achieved a milestone where cash flow exceeded EBITDA, giving us strength to face challenges ahead."

Publication Date: Mar -03

                                    📋 Highlights
                                    Market Capitalization Outperformance::
                                                Increased 152% (2021-2025) vs. IBEX 35's 114%, reflecting strong shareholder value creation.
Operating Cash Flow Achievement::
                                                EUR 1.359 billion, exceeding the strategic plan target two years ahead of schedule.
New Concession Projects::
                                                Secured 5 awards with EUR 905 million invested, nearing the EUR 1 billion 2024-2027 plan goal.
Revenue and EBITDA Growth::
                                                Revenue rose 12% to EUR 4.66 billion; EBITDA hit EUR 1.358 billion, maintaining a 29% margin.
Debt Reduction and Rating::
                                                Net recourse debt ratio at 0.18x (vs. 1x commitment) and achieved investment-grade rating.

                                

Segmental Performance

The Concession division saw revenue rise by 8% to EUR 1.892 billion, driven by major greenfield projects. The Engineering & Infrastructure division posted an 8% revenue growth to EUR 2.971 billion, with EBITDA increasing 31% to EUR 552 million. The Water division achieved double-digit growth, with revenue up 25% and EBITDA reaching EUR 62 million, a 23% increase year-on-year. These strong performances across divisions contributed to the company's overall growth.

Valuation and Outlook

With a P/E Ratio of 39.95 and an EV/EBITDA of 7.59, the market appears to be pricing in a significant growth premium. The Dividend Yield stands at 1.97%, providing a relatively stable return. Analysts estimate revenue growth at 3.4% for next year, indicating a continued positive trajectory. As Sacyr continues to execute its concession model for sustainable and stable growth, the company's commitment to increasing its portfolio in English-speaking countries and achieving an investment-grade rating will be key factors to watch.

Debt and Cash Flow

Sacyr's net recourse debt ratio is 0.18x, well below the maximum commitment of 1x, indicating a healthy balance sheet. The company's operating cash flow exceeded EBITDA, demonstrating its ability to generate cash from its assets. With a strong cash flow generation and a solid balance sheet, Sacyr is well-positioned to pursue new opportunities and meet its overall targets under the 2024-2027 strategic plan.

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

Acciona

A-Score: 6.4/10

Value: 5.4

Growth: 7.6

Quality: 3.9

Yield: 5.6

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

Balfour Beatty

A-Score: 6.3/10

Value: 5.2

Growth: 6.1

Quality: 4.8

Yield: 3.8

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

Sacyr

A-Score: 6.1/10

Value: 4.7

Growth: 5.7

Quality: 3.6

Yield: 7.5

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

Skanska

A-Score: 5.8/10

Value: 6.3

Growth: 4.1

Quality: 5.5

Yield: 5.6

Momentum: 5.5

Volatility: 8.0

1-Year Total Return ->

SPIE

A-Score: 5.8/10

Value: 4.3

Growth: 6.1

Quality: 3.5

Yield: 4.4

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

Webuild

A-Score: 5.5/10

Value: 6.8

Growth: 6.3

Quality: 3.0

Yield: 5.0

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.22%

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 2025 Earnings: A Strong Performance

Segmental Performance

Valuation and Outlook

Debt and Cash Flow

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

4.11$

Current Price

4.11$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA