DG:FRA - Embedded Expectations Analysis - 2018 11 08
VINCI SA (DG:FRA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 14.3x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, and management has concerns about their construction order intake, growth of VINCI Energies, and their marginsSpecifically, management may lack confidence in their ability to develop an automated toll system that utilizes registration plates and smartphones, and to sustain higher order intake from acquisitions for VINCI Energies and Eurovia. Moreover, they may be concerned about their ability to meet margin targets, and to sustain construction order intakes, particularly in Africa. Furthermore, they may be exaggerating opportunities to acquire additional airports, and might lack confidence in their ability to accelerate growth of VINCI Energies
Vinci is engaged in building, civil engineering and facilities management. Through its subsidiaries, Co. is engaged in five divisions comprising of: the Building division which provides retail solutions including construction and fit-out in both the retail and commercial sectors; the Civil Engineering division; the Air division which provides program management, engineering and construction services to customers with airport infrastructure requirements; the Technology division; and the VINCI Facilities division which provides facilities management, repair and maintenance and small works in both the private and public sectors.
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