Acciona SA : Overvalued relative to peers, but may deserve another look

Acciona SA relative valuation is now OVERVALUED. It was previously rated UNDERVALUED, and has a fundamental analysis score of 47.

Our analysis is based on comparing Acciona SA with the following peers – Planigrupo LATAM, S.A.B. de C.V., Promotora y Operadora de Infraestructura SA Class L, Prime City One Capital Corp. and Reco International Group Inc. (PLANI-MX, PINFRAL-MX, PMO.H-CA and RGI-CA).

Relative Valuation

Acciona SA’s price of USD 73.77 is greater than CapitalCube’s implied price of USD 69.24. At this level, CapitalCube believes that Acciona SA is overvalued. Over the last 52 week period, the stock has fluctuated between USD 66.51 and USD 84.50.

Relative Valuation

Company Overview

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • Acciona SA’s current Price/Book of 0.90 is about median in its peer group.
  • ACXIF-US outperforms its peers with a relatively high operating performance and the market also expects faster growth relative to its peers
  • ACXIF-US has relatively high profit margins while operating with median asset turns.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • Over the last five years, ACXIF-US‘s return on assets has improved from median to better than the median among its peers, suggesting the company has found relative operating advantages.
  • The company’s margins are around the peer medians and do not suggest any benefit from a pricing or an operating cost advantage versus peers.
  • While ACXIF-US‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median P/E ratio and may be factoring in some sort of a strategic play.
  • The company seems to be over-investing in a business with median returns.
  • ACXIF-US seems too levered to raise additional debt.

Investment Outlook

Acciona SA has a fundamental score of 47 and has a relative valuation of OVERVALUED.

Acciona SA’s Fundamental Analysis Score is about average at 47, thus not allowing for a specific classification into the Value – Price Matrix.

Fundamentals Vs Relative Valuation

Quadrant label definitions. Hover to know more

Safety, Value Play, Value Trap, Speculative

Drivers of Valuation

ACXIF-US has an Outperforming profile relative to peers.

ACXIF-US achieved a better operating performance than the median of its chosen peers (ROE of 17.71% compared to the peer median ROE of 10.28%) and the market still expects faster growth from it than from those peers (P/E of 5.37 compared to peer median of 3.27).

The company’s current Price/Book of 0.90 is about median in its peer group.

Valuation Drivers

Quadrant label definitions. Hover to know more

Outperforming, Harvesting, Challenged, Turnaround

ACXIF-US has moved to an Outperforming from a relatively high ROE profile at the recent year-end.

ROE % (On Common Equity)
Price To Earnings

Peer Analysis

A complete list of valuation metrics is available on the company page.

Company Profile

Acciona SA is a holding company, which engages in development and management of infrastructure and renewable energy. It operates through the following segments: Energy, Construction, Water, Services, and Other Activities. The Energy segment includes industrial and commercial activities of the electricity business, ranging from the construction of wind farms to the generation, distribution, and retailing of various energy sources. The Construction segment consists of construction and engineering activities and transport and hospital concessions. The Water segment comprises of activities relating to the construction of desalination plants, water treatment plants and drinking water stations as well as the management of the entire water cycle. The Services segment provides facility services, airport handling services, waste collection and treatment, and logistics services. The Other Activities segment deals with businesses relating to fund management and stock market brokerage, wine production, as well as the activities of the ACCIONA Trasmediterranea subgroup, and other investments. The company was founded in 1997 and is headquartered in Alcobendas, Spain.

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