Current Analysis: Eiffage

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Eiffage SA (EFGSY) focuses on construction, property development, civil engineering, and energy projects. It constructs complex structures and renovates projects to customers' general and legal requirements.

A wide range of experience allows the company to provide integrated offerings, finance different deals, design, and build numerous structures. Eiffage reports four business activities: construction, infrastructures, energy, and concessions. It supports public and private sector clients, from planning to asset maintenance.

The company has the capability to design and construct onshore and offshore infrastructures and can roll out multi-technical solutions throughout the industrial sector.

France accounts for the majority of total revenue.

The company was founded in 1844 and is based in Vélizy-Villacoublay, France.

Three key data points gauge Eiffage SA or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

EFGSY Price

Over the past year, Effage share price dropped about 34.26% from $23.04 to $22.03 as of Tuesday’s market close.

If Effage shares trade in the range of $17 to $27.00 this next year, its recent $22.03 share price might rise to $23.35 by next year. Of course, Effages price could drop about the same $1.32 estimated amount or more.

My annual upside estimate of $1.32 however, is equal to the average EFGSY annual price gain over the past 12 years

EFGSY Dividend

Effage has paid variable annual dividends for twelve years,  EFGSY’s most recent A dividend of $0.87 was declared April 18th  for shareholders of record May 16th to be paid June 6th.

A forward-looking $0.87 annual dividend yields 3.97% at Monday’s $22.03 share price.

EFGSY Returns

To put it all together, add the Effage projected annual dividend of $0.87 to the estimated price upside of $1.32 to get a $2.19 estimated gross gain for the coming year.

At Monday’s $22.03 share price, a little over $1000 would buy 45 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.22 per share.

Subtracting that likely $0.22 brokerage cost from the $2.19 gross gain reveals a net gain of $1.97 X 45 shares = $88.65 for an 8% estimated net gain on the year.

You might choose to pounce on Effage SA It is a 180-year-old dividend-paying France-based construction firm that has a twenty-two year track record paying dividends. Furthermore, the $39.70 estimated dividend income from $1k invested is 1.8 times greater than Effage’s recent $22.03 share price.

The exact track of Effage’s upcoming future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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