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Fomento de Construcciones y Contratas SA (FCC) Fair Value & Analysis

Industrials · ES · Market cap €5.8B · ISIN ES0122060314

What is Fomento de Construcciones y Contratas SA really worth?

FD Fomento de Construcciones y Contratas SA FCC · MC
Price€10.92
Fair Value€9.99
Upside−8.5%
Quality48/100

Below-average quality, currently priced close to our fair value of €9.99.

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Strengths

Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +9.5 %/yr)
!Thin margins · 1.6% net margin
!Trails peers (4/15)
!Narrow moat 35/100
!Evidence only medium, so the estimate is less certain
!Weak on valuation: 22 out of 100
!Weak on future: 23 out of 100
Evidence: Medium Range €7.49 – €12.48

Fair value as of: Aug 27, 2026

From 24 valuation models · updated 9 days ago

Fair value updated Aug 27, 2026, revised from €7.30 to €9.99 (+36.9%) since Aug 13, 2026. Share price −2.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • The price sits in the upper half of our model range, so the margin of safety is thin.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

€13.20 €4.49 Fair Value €9.99 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range €4.49 – €13.20 · fair‑value band €7.49 – €12.48 · the €10.92 price screens above the €9.99 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Fomento de Construcciones y Contratas SA (FCC) currently trades at €10.92, while our model-based Fair Value estimate is €9.99, implying the stock looks roughly 9.3% fairly valued today. The Quality Score stands at 48/100 (below-average quality), in the Industrials sector. Bull case: the Growth DCF group reads highest at a median of €11.17 per share, and 10 of the 24 models we run sit above the €10.92 price. Bear case: the Earnings-Based group reads lowest at €4.55, and 14 of the 24 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Fomento de Construcciones y Contratas SA generated revenue of €10.0B at a net margin of 1.6%. Revenue grew 4.6% year over year. It earns a return on equity of 6.5%. Net debt stands at €3.0B. Fundamentals as of Aug 27, 2026

Our scenario range runs from €7.49 (bear case) to €12.48 (bull case); at €10.92, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 14% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −34% fair-value upside, at −9%, FCC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €0.2368 per share, which is 2.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence €7.40 €11.02 €16.60 80
Growth DCF €7.73 €11.17 €16.18 78
Residual Income €5.49 €5.44 €4.97 76
All 24 models by family
DCF Models
FCF DCF best evidence €7.40 €11.02 €16.60 80
Owner Earnings €1.36 €2.81 €5.05 73
5Y Revenue Exit €7.74 €12.76 €19.37 72
5Y EBITDA Exit €15.92 €26.90 €40.03 74
5Y P/E Exit €4.12 €6.51 €9.05 70
10Y Revenue Exit €7.21 €11.55 €16.65 66
10Y EBITDA Exit €12.46 €20.75 €30.60 68
10Y P/E Exit €5.33 €7.48 €9.68 65
Earnings-Based
Graham-Dodd €2.36 €4.55 €5.68 66
EPV €6.53 €7.98 €9.23 74
Dividend Discount
Gordon GGM €0.2500 €0.3500 €0.4400 69
DDM Multi-Stage €0.2500 €0.3500 €0.4500 67
Multiples
P/E Multiple €5.47 €7.30 €9.12 63
P/S Multiple €4.43 €5.91 €7.39 58
P/B Multiple €4.43 €5.91 €7.39 55
EV/EBIT €13.34 €18.69 €24.03 66
EV/EBITDA €24.91 €34.11 €43.31 67
EV/Revenue €8.76 €13.66 €18.56 53
Asset-Based
NCAV (Graham) €3.68 €4.94 €7.37 54
Growth DCF
Growth DCF €7.73 €11.17 €16.18 78
Rev-Margin DCF €7.74 €12.92 €18.75 72
Economic Profit
Residual Income €5.49 €5.44 €4.97 76
ROIC Compounder €6.53 €8.11 €9.87 72
Growth Earnings
Growth-Adj P/E €3.93 €5.61 €7.30 67

Widest divergence: Growth DCF (€11.17) versus Dividend Discount (€0.3500). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 31.2
P/S ratio 0.53 P/E × margin
EPS (TTM) €0.3500 price ÷ EPS = P/E 31.2
Dividend yield 0.2% payout 7.7%
Net margin 1.7% FY2025
Return on equity 6.5% TTM
More key figures
Profitability
Return on assets (EBIT) 4.6% avg 5y
Operating margin 6.1% TTM
Growth
Revenue (TTM) €10.0B TTM
Revenue growth (YoY) +4.6% 3y avg +8.0%
EPS growth (YoY) −49.4%
Balance sheet & cash flow
Free cash flow €487M FY2025
Net debt €3.0B FY2025 · ≈ 6.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 46 · Market factors (momentum, volatility) 53

Profitability 36
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 26
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 61
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Fomento de Construcciones y Contratas, S.A., together with its subsidiaries, provides environmental services in Europe and internationally. It operates through Environmental Services; Integrated Water Management; Construction; Concessions; Cement; and Real Estate segments.

Full company description

Fomento de Construcciones y Contratas, S.A., together with its subsidiaries, provides environmental services in Europe and internationally. It operates through Environmental Services; Integrated Water Management; Construction; Concessions; Cement; and Real Estate segments. The company offers municipal, waste treatment and resource recycling, and facility management services; and concessions and proprietary infrastructure for the entire cycle, BOT, operation and maintenance services, and irrigation, as well as technology and network activities, which include EPC contracts and industrial water treatment activities; design, planning, construction, and maintenance services. It also engages in developing, financing, managing, and operating social and transportation infrastructure concessions. The company was formerly known as Fomento de Obras y Construcciones S.A. and changed its name to Fomento de Construcciones y Contratas, S.A. in January 1992. Fomento de Construcciones y Contratas was founded in 1900 and is headquartered in Madrid, Spain. The company operates as a subsidiary of Control Empresarial de Capitales SA de CV.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Fomento de Construcciones y Contratas SA reported revenue of €9.7B in FY2025 versus €6.7B in FY2021, a compound +9.9%/yr. Reported net income was €164M in FY2025, compounding −27.0%/yr from FY2021.

Growth Quality 75/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€9.7B
Latest YoY
+6.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.5%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−15.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
−1.3% (−1.5 + 0.2)
Revenue +9.9%/yr
FY21 €6.7B
FY22 €7.7B
FY23 €8.4B
FY24 €9.1B
FY25 €9.7B
Net income −27.0%/yr
FY21 €580M
FY22 €315M
FY23 €589M
FY24 €430M
FY25 €164M

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Cite: Fair Value Calculator (2026). "Fomento de Construcciones y Contratas SA Fair Value". https://www.fairvalue-calculator.com/stock/FCC

Peer Group

Waste Management · 165 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside −9% · Above median
Return on equity (TTM) 7% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 6% · Below median
Revenue growth 5% · Above median
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 1.15× · Higher than 75% of peers

Valuation Multiples vs Waste Management median · lower = cheaper

P/E (TTM) 31.2× · Pricier than median
P/B 1.92× · Pricier than median
P/S (TTM) 0.67× · Cheaper than median
P/FCF 13.7× · Pricier than 75% of peers
EV/EBITDA 6.4× · Cheaper than median
PEG 78.21× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE22 · sector 2
FUTURE23 · sector 19
PAST26 · sector 26
HEALTH43 · sector 82
DIVIDEND5 · sector 45

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Waste Management stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Waste Management, Inc WM $217.76 $128.02 −41%
Republic Services, Inc RSG $220.92 $120.63 −45%
Waste Connections, Inc WCN C$230.52 C$78.67 −66%
Veolia Environnement SA VIE €32.60 €23.26 −29%
Clean Harbors, Inc CLH $311.81 $154.01 −51%
GFL Environmental Inc GFL C$57.62 C$44.27 −23%
GEM Co 002340 ¥6.67 ¥5.27 −21%
Zhejiang Weiming Environment Protection Co 603568 ¥14.86 ¥20.95 +41%
Cleanaway Waste Management Limited CWY A$2.60 A$1.18 −55%
Beijing GeoEnviron Engineering & Technology, Inc 603588 ¥14.10 ¥9.35 −34%

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Frequently asked questions

Is Fomento de Construcciones y Contratas SA (FCC) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of €9.99 versus a price of €10.92, about −9% upside (fairly valued).
What is the fair value of FCC?
Our model-based fair value for Fomento de Construcciones y Contratas SA is €9.99 (as of Aug 27, 2026), built from audited fundamentals. The current price: €10.92.
What is the quality score of FCC?
Fomento de Construcciones y Contratas SA has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Fomento de Construcciones y Contratas SA (FCC)?
Fomento de Construcciones y Contratas SA reported trailing-twelve-month revenue of about €10.0B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of FCC?
The net profit margin of Fomento de Construcciones y Contratas SA is about 1.6%, meaning it keeps roughly 1.6% of revenue as net income. Based on the latest reported figures.
Does Fomento de Construcciones y Contratas SA pay a dividend?
Fomento de Construcciones y Contratas SA currently shows a dividend yield of about 0.25% relative to its recent price (as of Aug 27, 2026).
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