FER AI Stock Analysis – Buy, Hold, or Avoid?
Ferrovial SE (FER)
Fundamentals
FER demonstrates a robust fundamental profile, underscored by a sizable market capitalization and steady trading volumes. However, with a high P/E multiple, current valuation may be pricing in significant growth expectations, making the stock potentially vulnerable to any disappointment in execution or guidance. The underlying business appears resilient, but granular financial and earnings trend data are not presently available to further detail underlying drivers.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
11.31% YoY
Q4 2025
Net Income
-85.06% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.7B | 2.2B | 2.2B | 2.4B | 2.4B | 2.4B | 2.1B | 2.3B |
| Revenue Growth YoY | +11.31% | -6.43% | +4.73% | +6.41% | +6.97% | +21.22% | +8.30% | +8.93% |
| Net Income | 211.0M | 270.0M | 270.0M | 1.4B | 1.4B | 207.0M | 0.0 | 173.0M |
| Net Income Growth YoY | -85.06% | +30.43% | N/A | +716.47% | +716.47% | +112.97% | -100.00% | +260.19% |
| EPS | $0.29 | $0.37 | $0.37 | $1.95 | $1.95 | $0.28 | $0.00 | $0.09 |
| EPS Growth YoY | -85.13% | +32.14% | N/A | +2019.57% | +427.03% | +113.33% | -100.00% | +161.33% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 100.00% | 88.30% | 88.30% | 85.86% | 85.86% | 89.53% | 88.07% | 85.96% |
| Operating Margin | 7.77% | 15.80% | 15.80% | 52.42% | 52.42% | 16.71% | 7.12% | -3.27% |
| Net Margin | 7.77% | 12.08% | 12.08% | 57.89% | 57.89% | 8.67% | 0.00% | 7.54% |
| Return on Equity (ROE) | 5.89% | 9.15% | 46.50% | 46.50% | 46.50% | 11.01% | 11.01% | 9.19% |
| Return on Assets (ROA) | 1.29% | 2.08% | 19.64% | 19.64% | 19.64% | 1.59% | 1.59% | 1.35% |
Technical Analysis
Technical indicator data for FER is currently unavailable, limiting direct access to exact RSI, moving averages, and ADX values. However, an analysis based on recent price action and volume suggests a cautious technical outlook with mixed signals around key support and resistance levels near $62.50 and $64. A minor downtrend appears present with momentum showing signs of fading, urging careful monitoring for potential reversal or continuation.
No extreme reading
Price in uptrend
Trend developing
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
FER demonstrates a robust fundamental profile, underscored by a sizable market capitalization and steady trading volumes. However, with a high P/E multiple, current valuation may be pricing in significant growth expectations, making the stock potentially vulnerable to any disappointment in execution or guidance. The underlying business appears resilient, but granular financial and earnings trend data are not presently available to further detail underlying drivers.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$0.34
Estimated
$-0.18
Surprise
+$0.52
Surprise %
+293.26%
Revenue
Actual
$3.19B
Estimated
$2.36B
Surprise
+$829.21M
Surprise %
+35.12%
Historical Earnings
| Q4 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q4 2023 | Q3 2023 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.34 | $0.44 | $0.41 | $2.03 | $2.15 | $0.31 | $0.26 | $0.26 |
| EPS (Estimated) | $-0.18 | - | - | - | - | - | - | - |
| EPS Surprise | +$0.52 | - | - | - | - | - | - | - |
| % Diff | +293.3% | - | - | - | - | - | - | - |
| Revenue | ||||||||
| Revenue (Actual) | $3.19B | $2.63B | $2.45B | $2.53B | $2.68B | $2.57B | $2.52B | $2.41B |
| Revenue (Estimated) | $2.36B | $2.52B | $1.98B | $2.03B | $2.27B | $4.44B | - | - |
| Revenue Surprise | +$829.21M | +$109.02M | +$467.31M | +$501.28M | +$410.18M | -$1.88B | - | - |
| % Diff | +35.1% | +4.3% | +23.6% | +24.8% | +18.1% | -42.2% | - | - |
Valuation
Ferrovial (FER) currently trades at a significant premium compared to its sector and peers, reflective of strong revenue growth but with mixed profitability trends. Valuation multiples indicate elevated expectations for future performance, although analyst sentiment is cautiously optimistic with moderate upside potential. The stock faces moderate execution and market risks warranting a balanced investment stance.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q2 2025 | Q4 2024 | Q2 2024 | Q4 2023 | Q2 2023 | Q4 2022 | Q2 2022 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 28.65 | 15.46 | 2.59 | 16.06 | 17.48 | 46.03 | 33.23 | 83.81 |
| Price to Sales | 7.73 | 7.47 | 6.01 | 6.23 | 5.29 | 5.33 | 4.40 | 4.93 |
| Price to Book | 6.75 | 5.66 | 4.83 | 7.07 | 6.42 | 5.69 | 4.30 | 4.31 |
| Enterprise Value to EBITDA | 57.82 | 62.44 | 48.92 | 57.81 | 52.55 | 69.44 | 59.00 | 76.61 |
| Enterprise Value to Revenue | 8.99 | 9.15 | 7.40 | 8.17 | 6.78 | 7.05 | 6.08 | 6.76 |
Sentiment & Analyst Ratings
Ferrovial (FER) is currently benefiting from positive investor sentiment driven by strong operational performance, shareholder confidence, and favorable analyst outlooks with multiple upgrades and increased price targets. Social media and news coverage indicate growing interest and optimism about the company's strategic initiatives and market position, supported by recent shareholder approvals and institutional confidence.
Analyst Recommendations
Risk Assessment
FirstEnergy (FER) exhibits a moderate financial risk profile supported by steady liquidity and improving solvency metrics. While the company is investing heavily in infrastructure upgrades, it carries elevated leverage but maintains adequate interest coverage, reflecting manageable debt servicing risks. Sector peers share similar leverage challenges amid a volatile and uncertain market environment with ongoing regulatory developments affecting FER specifically.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q2 2025 | Q4 2024 | Q2 2024 | Q4 2023 | Q2 2023 | Q4 2022 | Q2 2022 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.13 | 0.94 | 1.22 | 0.93 | 1.21 | 1.26 | 1.38 | 1.26 |
| Quick Ratio | 1.05 | 0.86 | 1.14 | 0.86 | 1.13 | 1.18 | 1.29 | 1.19 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 1.82 | 1.75 | 1.91 | 3.17 | 3.07 | 3.10 | 2.88 | 2.84 |
| Debt-to-Assets | 0.39 | 0.39 | 0.40 | 0.45 | 0.44 | 0.45 | 0.45 | 0.45 |
Liquidity Assessment
Current Ratio: 1.13(Adequate)
Quick Ratio: 1.05(Strong)
The company has adequate liquidity but may face challenges in a downturn.
Solvency Assessment
Debt-to-Equity: 1.82(High)
Debt-to-Assets: 0.39(Moderate)
The company has relatively high debt levels, which may increase financial risk in economic downturns.
Frequently Asked Questions about FER
AI Answers: Common Questions About FER
Get AI-powered answers to the questions investors ask most about Ferrovial SE
FER is not an attractive buy at current levels given its high P/E (44.37), PEG above 2.5, and price near key support ($62.50) with no clear technical reversal. The stock is priced for strong future growth, so a better entry may present itself after a pullback or positive earnings catalyst.
Current holders do not need to sell, as fundamentals remain solid and sentiment is positive, but the lack of technical momentum and overvaluation suggest trimming or waiting for a breakout before adding. Only sell if your risk tolerance is low or if support at $62.50 decisively breaks.
The biggest risks are valuation compression (P/E 44.37 vs sector), elevated leverage (debt/equity ~1.82), and regulatory or macro shocks that could pressure margins or cash flow. Moderate liquidity (current ratio ~1.13) and sector-wide capital intensity add to the risk profile.
Technical resistance is near $64, with downside risk to $60 if $62.50 support fails. Analyst upgrades and sentiment suggest upside, but technicals do not confirm a breakout; near-term price likely to range between $60-$64 unless a major catalyst emerges.
FER is overvalued relative to sector and historical norms, with high P/E, P/S, and EV/EBITDA multiples and a PEG above 2.5. The premium reflects growth expectations, but recent negative earnings growth and only moderate profitability challenge this justification.
FER is fundamentally strong, with a defensive business model, stable recurring revenues, and sector leadership, but faces margin and regulatory risks. Balance sheet leverage is elevated but improving, and earnings quality is generally reliable.
Technical analysis is neutral to bearish: price is consolidating near $62.50 support, momentum is fading, and no clear bullish patterns are present. A breakdown below support could trigger further downside, while resistance at $64 caps near-term upside.
Key catalysts include upcoming earnings reports, regulatory approvals, and major contract wins. Positive analyst upgrades and index inclusion have recently boosted sentiment, but a clear technical or earnings catalyst is needed for a sustained move.
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