SALINI IMPREGILO STOCK VALUE - OVERVIEW - MARCH 2016
Business:
The Salini’stock produces high returns on capital employed; the company has a competitive advantage in the long term and can be stored over time.
Management:
Managers are rational people, transparent and independent, competent and honest besides: the company allocates capital in a virtuous, what determines shareholder value. An example: in the last two years, the Group has produced useful than investments that were not higher than the market average, but it has generated more cash than it should require, therefore, had before it three options: a) to continue to invest at lower rates the media; b) "buy growth"; c) return cash to shareholders. The management has chosen to acquire Lane Construction today is driving growth and value. Advertised programs have always been implemented, which increases the company’s reputation.
Finance:
If we analyze the expected return on equity in 2015 and 2015, this indicator should be around 21% that supported a debt / equity ratio of 0.30%, giving the signal excellent annual performance.
Market:
the company’s value is higher than the price today indicates: the increase in sales, profits and asset increases the value and net capital, the discounted cash flows expected in 2015 at a discount rate close to that of bonds, fixes a Target Price of 5.80 euro.
Business:
The Salini’stock produces high returns on capital employed; the company has a competitive advantage in the long term and can be stored over time.
Management:
Managers are rational people, transparent and independent, competent and honest besides: the company allocates capital in a virtuous, what determines shareholder value. An example: in the last two years, the Group has produced useful than investments that were not higher than the market average, but it has generated more cash than it should require, therefore, had before it three options: a) to continue to invest at lower rates the media; b) "buy growth"; c) return cash to shareholders. The management has chosen to acquire Lane Construction today is driving growth and value. Advertised programs have always been implemented, which increases the company’s reputation.
Finance:
If we analyze the expected return on equity in 2015 and 2015, this indicator should be around 21% that supported a debt / equity ratio of 0.30%, giving the signal excellent annual performance.
Market:
the company’s value is higher than the price today indicates: the increase in sales, profits and asset increases the value and net capital, the discounted cash flows expected in 2015 at a discount rate close to that of bonds, fixes a Target Price of 5.80 euro.
