Sacyr, a solid company with increasingly recurring revenue

Sacyr enjoys stable, predictable and increasingly strong revenues thanks to the greater weight of its franchise business without the risk of demand.

Sacyr shares have accumulated a gain of 15.38% so far in 2023, +32.7% year-over-year and +12.5% ​​marked in the quarter.

Sacyr historical price

Prospects and expectations

Sayer has a strategic plan with a 2021-25 time horizon And already in 2022, it exceeded the main targets set in this plan in terms of turnover (€5,852m vs. €5,500m), EBITDA (€1,502m vs. €1,200m), profitability (26% vs. 22%) and EBITDA franchise percentage (88% vs. 85%). In 2022, six very important infrastructures will be operational: AVO I, Route 78 and El Tepual Airport in Chile; Mar-1 and Rumichaca-Pasto in Colombia and the A3 motorway in Italy. In addition, Sacyr Concesiones was awarded three new projects last year, in line with what was set out in the strategic plan: De Vilinder Hospital (Wales, UK) and Buenaventura-Buga Highway and Canal del Dec in Colombia.

Shareholders’ reward is another pillar of Sayer’s strategic plan. And so, through 2022, the group has paid two Dividends With a value of 0.115 euros per share, raising the dividend yield to 4.8%, achieving the target and the acquired commitment with the market. After closing, in January 2023, Sayer distributed new cash dividends. The Board of Directors will take to the next general meeting of shareholders to approve two new memberships Dividends. At this report’s prices, the dividend yield is about 4%.

In short, Sacyr has steady, predictable and increasingly strong revenue thanks to the greater weight of its franchise business without the risk of demand. Repsol’s eventual exit also endorsed income stability, and it also worked on debt relief. It’s a diversified group, with revenue visibility, a strong balance sheet and a generous dividend payout. The MLM business, with its inflation-related income, provides protection against price escalation.

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