Ferrovial SE (FER): A Bull Case Theory
We came across a bullish thesis on Ferrovial SE (FER) on Substack by OppCost. In this article, we will summarize the bulls' thesis on FER. Ferrovial SE (FER)'s share was trading at $50.93 as of May 16th. FER's trailing and forward P/E were 10.24 and 43.86 respectively according to Yahoo Finance.
A construction team working busily on a motorway, demonstrating the scale of the companies operations.
Ferrovial has strategically transformed into a focused operator of high-value transportation infrastructure assets in North America, supported by a growing Energy division, while divesting non-core businesses such as Services and a majority stake in Heathrow. This asset rotation has materially boosted reported net profits in 2024 through divestment gains, reflecting strong corporate financial health highlighted by a consistent net cash position (excluding non-recourse project debt) and an investment-grade credit rating.
Operationally, the company's core Toll Roads segment, particularly the US Managed Lanes, delivers exceptional performance with revenue per transaction growing faster than inflation, while the Construction segment has rebounded to meet margin targets after prior difficulties. Key projects, including the on-schedule completion of JFK's New Terminal One, underpin growth visibility alongside a robust construction order book and ongoing expansion of infrastructure assets and the Energy division. Although free cash flow has been volatile due to substantial growth investments, liquidity remains strong. The main challenge lies in executing large projects effectively to generate returns that compensate for capital deployment and replace earnings lost from divested assets.
Ferrovial's intrinsic value is estimated at $49.85 per share based on a Discounted Cash Flow model, indicating the stock currently trades near fair value with a projected 5-year IRR of about 8.5%. Risks include project execution hurdles, construction cost overruns, reliance on continued asset rotation, and sensitivity to interest rate and regulatory changes. Overall, Ferrovial offers a stable outlook with moderate growth potential, contingent on successful delivery of its strategic transformation toward a North American infrastructure and energy-focused portfolio.
Ferrovial SE (FER) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held FER at the end of the fourth quarter which was 7 in the previous quarter. While we acknowledge the risk and potential of FER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
30 minutes ago
- Yahoo
Foot Locker Opened 9 New Stores and Closed 56 Doors In Q1
With Foot Locker Inc. announcing preliminary first-quarter results on May 15, the official tally on earnings Thursday was no surprise. The sneaker retailer said at the time that it inked a deal to be acquired by Dick's Sporting Goods for $2.4 billion, or $24 a share. The deal is expected to close later this year, and some on Wall Street concluded the combined entity will be good for its vendor base. Dick's reported first quarter results on Wednesday, and its CEO Lauren Hobart said Nike is among the vendors that that 'continues to perform really, really well for us.' More from WWD Ulta Beauty Nudges Up Full-year Guidance After Stronger Than Expected Q1 Performance Tariff Impact Evident in Caleres' Q1 as Sales, Profits Slide Dick's Sporting Goods Delivers Record Q1 Sales, Maintains Full-year Guidance 'We are continuing to execute our Lace Up Plan strategies as we look forward to the successful completion of our transaction with DICK'S Sporting Goods,' Foot Locker's CEO Mary Dillon said in a statement. She noted that softer traffic trends globally impacted the quarterly results. 'As we have executed these and other initiatives to further advance our strategy, our teams have also remained nimble to navigate the uncertain macroeconomic environment, including managing our promotional levels, inventories, and expenses and remaining disciplined with our cash flows,' she said. What's new in the earnings report is that the company opened 9 new stores and closed 56 locations, including stores in South Korea, Denmark, Norway, Sweden, Greece and Romania. It also remodeled or relocated 11 doors and refreshed 69 locates to it updated store design. At the end of the quarter, Foot Locker operated 2,363 stores across 20 countries in North America, Europe, Asia, Australia and New Zealand. It also has 236 licensed stores operating in the Middle East, Europe and Asia. The retailer said that the licensed operations include the Greece and Romania business that was sold to its license partner in April 2025. For the first quarter ended May 3, the net loss was $363 million, or $3.81 cents a diluted share, versus net income of $8 million, or 9 cents, in the year-ago period. On an adjusted basis, the loss was 7 cents a share. Total revenue fell 4.5 percent to $1.79 billion from $1.88 billion. Total revenue included a 4.6 percent decline in sales to $1.79 billion from $1.87 billion. The company said that comparable sales fell by 2.6 percent. By business segment, comparable sales in the North American region slipped by 0.5 percent, and was down 8.5 percent at its international businesses, led by softness in Foot Locker Europe. Also impacting results was a decline in gross margin by 40 basis points versus year-ago levels, with merchandise margins down by 10 basis points. Because of the pending acquisition, the retailer's management did not hold a conference call to discuss earnings results. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
BMW, VW, and Mercedes-Benz Hope to Cut a Trump Tariff Deal by June: Report
On Thursday morning, the United States Court of International Trade in New York City blocked President Donald Trump's sweeping tariff package, putting a temporary end to the mechanisms of the ongoing trade war that has rattled the automotive industry across the globe. The court stated that it was not the fallout of President Trump's unorthodox implementation of the tariffs, but rather, they "exceed any authority granted to the president … to regulate importation by means of tariffs." The industry-shaking automotive tariffs were included in the court's ruling, providing at least a temporary reprieve from the 25% tax applied to most imported vehicles. Of course, the Trump administration has already filed to appeal the decision, so automakers are hardly out of the weeds yet. And Germany's big three—the Volkswagen Group, BMW, and Mercedes-Benz—appear well aware of the challenges on the horizon. That's why executives from all three automakers are set to meet with the U.S. Department of Commerce in an effort to hash out a mutually beneficial deal, according to reporting from Reuters. While all three manufacturers operate factories within the continental U.S., the Trump administration has seemingly deemed these as not enough investment. As a result, a series of anonymous sources told Reuters that these impending discussions will hinge on each automaker's willingness to expand North American manufacturing. Mercedes is perhaps the closest to appeasing the Trump administration, as the Stuttgart-based automaker plans to expand production at its Alabama plant. Specifically, the GLC-Class SUV will be added to the assembly line, building on the existing production of GLE-Class, GLS-Class and GLE-Class Coupes in Tuscaloosa. BMW's strongest sellers in the U.S., the X-series SUVs, are also built domestically at its Spartanburg, South Carolina, plant — and the automaker is allegedly considering adding extra shifts to increase production. Similarly, the Volkswagen Group has claimed it will bring Audi production stateside by 2027, adding the four-ringed models to production lines in Chattanooga, Tennessee, and South Carolina. All three automakers declined to comment when asked about the upcoming meetings. The European Commission has been relatively acquiescent in the face of aggressive tariffs and is hoping to steady, if not slash, the level of tariffs encroaching on the 27-nation group from across the Atlantic Ocean. That said, the European Commission has claimed it is ready to strike back should these talks falter. Such offensive action would likely impact German automakers negatively, as BMW and Mercedes-Benz would be subject to tariffs from both ends of the ocean. BMW has previously asked the European Commission to lower the U.S. vehicle import tariff from 10% to 2.5%. Reuters reports that these talks could result in an expansion of the export credit scheme proposed earlier this year by Commerce Secretary Howard Lutnick. Essentially, foreign automakers producing vehicles in the U.S. would receive credits for cars exported to other countries, which would then be deducted from the import tariffs imposed by the federal government. This deal could be nullified by the court's pausing of the tariff scheme, but analysts say that the Trump administration is especially likely to find other mechanisms to apply levies to the automotive industry. "If the ruling did remain in place," Deutsche Bank strategist Jim Reid said to The Guardian, "one option for the administration would be to expand the use of other tariff instruments, like the section 232 on national security grounds, which have been used for autos, steel and aluminum tariffs." You Might Also Like You Need a Torque Wrench in Your Toolbox Tested: Best Car Interior Cleaners The Man Who Signs Every Car
Hamilton Spectator
an hour ago
- Hamilton Spectator
Voxtur Announces Financial Results for the Q1 2025 – Ended March 31, 2025
TORONTO and TAMPA, Fla., May 30, 2025 (GLOBE NEWSWIRE) — Voxtur Analytics Corp. (TSXV: VXTR; OTCQB: VXTRF) ('Voxtur' or the 'Company'), a North American technology company creating a more transparent and accessible real estate lending ecosystem, today announced its financial results for the three months ended March 31, 2025. The Company's Unaudited Condensed Interim Consolidated Financial Statements and the related Management's Discussion and Analysis ('MD&A') for the three months ended March 31, 2025, are available at and at . Financial Results: 1 Calculations include only the results from continuing operations and do not include results of discontinued operations. As at March 31, 2025, management was committed to a plan to sell one of the Company's business units. Accordingly, the Company has presented that business unit as a disposal group held for sale and reported its results as discontinued operations. During the first quarter of 2025, revenue from continuing operations declined approximately $3.6 million and gross profit declined approximately $3 million compared to the same period in the prior year. Despite this, the Company's net loss from continuing operations remained relatively stable, underscoring the meaningful impact of realizing synergies across the organization and cost reduction measures implemented by management over the past several quarters. Operational expense reductions initiated earlier this year began to positively impact the quarter, though the full benefit of these initiatives will be more fully realized in the second quarter and throughout the remainder of 2025. Further discussion with respect to the financial results can be found in the Company's MD&A available at and at . Management continues to work in close partnership with the Company's advisor and in conjunction with the Company's creditor as part of the strategic review announced earlier this year. The primary objective of this process is to reduce debt and position the Company for long-term financial stability and strength. 'We sincerely appreciate the continued support and patience of all our stakeholders as we navigate this important phase of our journey,' said Ryan Marshall, Voxtur's CEO. 'While we are not yet where we want to be, we are making steady progress, and our focus remains on building a more sustainable and resilient organization.' The Company intends to host a shareholder call in the near future upon having material updates on the strategic review process and outline the path forward for the business, including other key corporate developments. About Voxtur Voxtur is a proptech company. The company offers targeted data analytics to simplify the multifaceted aspects of the lending lifecycle for investors, lenders, government agencies and servicers. Voxtur's proprietary data hub and workflow platforms more accurately and efficiently value real estate assets, providing critical due diligence that enables market participants to effectively originate, trade, or service defaults on mortgage loans. As an independent and transparent mortgage technology provider, the company offers primary and secondary market solutions in the United States and Canada. For more information, visit . Forward-Looking Information This news release contains certain forward-looking statements and forward-looking information (collectively, 'forward-looking information') which reflect the expectations of management regarding the Company's future growth, financial performance and objectives and the Company's strategic initiatives, plans, business prospects and opportunities. These forward-looking statements reflect management's current expectations regarding future events and the Company's financial and operating performance and speak only as of the date of this press release. By their very nature, forward-looking statements require management to make assumptions and involve significant risks and uncertainties, should not be read as guarantees of future events, performance or results, and give rise to the possibility that management's predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that the assumptions may not be correct and that the Company's future growth, financial performance and objectives and the Company's strategic initiatives, plans, business prospects and opportunities, including the duration, impact of and recovery from the COVID-19 pandemic, will not occur or be achieved. Any information contained herein that is not based on historical facts may be deemed to constitute forward-looking information within the meaning of Canadian and United States securities laws. Forward-looking information may be based on expectations, estimates and projections as at the date of this news release, and may be identified by the words 'may', 'would', 'could', 'should', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' or similar expressions. Forward-looking information may include but is not limited to the anticipated financial performance of the Company and other events or conditions that may occur in the future. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the information is provided. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information include but are not limited to: additional costs related to acquisitions, integration of acquired businesses, and implementation of new products; changing global financial conditions, especially in light of the COVID-19 global pandemic; reliance on specific key employees and customers to maintain business operations; competition within the Company's industry; a risk in technological failure, failure to implement technological upgrades, or failure to implement new technological products in accordance with expected timelines; changing market conditions related to defaulted mortgage loans, and the failure of clients to send foreclosure and bankruptcy referrals in volumes similar to those prior to the COVID-19 global pandemic; failure of governing agencies and regulatory bodies to approve the use of products and services developed by the Company; the Company's dependence on maintaining intellectual property and protecting newly developed intellectual property; operating losses and negative cash flows; and currency fluctuations. Accordingly, readers should not place undue reliance on forward-looking information contained herein. Factors relating to the Company's financial guidance and targets disclosed in this press release include, in addition to the factors set out above, the degree to which actual future events accord with, or vary from, the expectations of, and assumptions used by, Voxtur's management in preparing the financial guidance and targets. This forward-looking information is provided as of the date of this news release and, accordingly, is subject to change after such date. The Company does not assume any obligation to update or revise this information to reflect new events or circumstances except as required in accordance with applicable laws. Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. Voxtur's common shares are traded on the TSX Venture Exchange under the symbol VXTR and in the US on the OTCQB under the symbol VXTRF. Company Contact: Jordan Ross Tel: (416)708-9764 jordan@
