Sacyr is a stock whose selective entry in June of last year has given visibility to investors once again. It had it long before the financial crisis, the brick crisis, then it practically lost it by block and has been doing pretty well since mid-2020.
After the financial crisis and the failure to regain control of Brick and Repsol, Saysir has been replaced, says Antonio Castello, market specialist at iBroker. Sacyr is no longer a construction company, having diversified somewhat into other businesses such as services, water management and minor concessions, but has become an operator of concessional property. Right now, around 90% of their enterprise value comes from this business.
This change in its strategy has allowed it to generate a cash flow with which it has been able to improve its financial quality, as discounted assets approach maturity.
They a good exercise in 2022 And the latest published results, corresponding to the first quarter of 2023, continue to show strong operating growth, but this time not through the reduction in debt we’ve been accustomed to in recent quarters, experts point out, but rather because of its poor working capital. The increase of approximately EUR 98 – 100 million is due to the assumption of a lower dividend from the development and concession business.
This has created a certain seasonality in business in the first quarter of the year, a circumstance that was initially not liked by the market. From publishing those accounts, we see that it faced a market bump, which has since stabilized.
“We understand that in the next results release we will again see how debt returns to a reduction path”, based on the fact that the completion of a plan for the sale of assets that are not related to the concessional business, services , says Castello, the remnants of the service sector and non-strategic assets. This will allow you to generate liquidity and reduce debt. Offers for sale of part of these assets are expected at the end of May, which could be a catalyst for Sasser.
Analysts give it a target price of 3.61 euros, it is trading at a 22% discount and “I think like all companies concerned with exploiting concessions, it could see good growth over the rest of the year.”