Many times, the fact that a stock is trading at all-time highs can lead the investor to believe that the journey is over and it is time to reap profits if they have any or choose another company in which to invest your money. However, if they had done it at Ferrovial, they would have missed a good portion of their climbs so far.
In recent years, Ferrovial shares have reaped significant returns on the stock market thanks to the progress of its concession activities and its asset rotation policy, which have translated into an increasingly important income statement. On the floor this year they are already accumulating an advance of almost 20%which allowed it to be listed at historic highs.
However, it has not been free from concerns in recent days after the possibility was raised that the State of Ontario (Canada) is considering nationalizing the 407 ETR toll highway, considered as the most valuable asset of the Spanish company. This threat led some investors to take profits from the dealership initially. Over the days this possibility has lost its strength, especially due to the enormous amount of money that the public entity would have to spend to be able to do it, regarding the 23.5 billion euros since the concession itself specifies that it must be made at market value.
Despite this, analysts have also increased their valuations to a point where the consensus still forecasts an additional journey of just over 6%up to 41.5 euros where it sets its average price target over 12 months.
“Its assets offer good prospects and it could continue to create value through asset rotation,” emphasizes Bankinter. “Ferrovial is more than 80% exposed to North America, where we expect economic growth and continued high inflation, in addition to interest rate reductions, so its concessions will continue to grow in terms of traffic and prices,” he adds. “On the other hand, it will continue the process of asset rotation, selling mature assets like Heathrow and investing in others as was the case with JFK,” they conclude.
In its latest results, those corresponding to the first half, we already noted an acceleration in its profits, exceeding expectations thanks precisely to the increase in traffic and prices in the United States. “We have a positive long-term vision, supported by its growth strategy and its positive expectations in terms of traffic, both on highways and at airports,” they emphasize in Renta 4.
Next dividend
Once the second part of the annual dividend on the 2023 accounts has been paid in June, experts are already estimating the dealer’s next payment, which will take place during the month of November as usual. The first dividend charged to the 2024 accounts should be 0.45 euros per share25% above the first payment of 2023. This, at current prices, reaches a profitability of 1.1%, which will end in June. It should be remembered that Ferrovial remunerates its shareholders via the flexible format. In other words, shareholders can collect cash or new shares and the company then repurchases the securities so as not to dilute those who opt for the species.
