Phiadvisor's bullish signal on Bouygues (EN-FR)
Bouygues is a € 12.6 bn market cap, and a french construction and Telecoms company organized around 3 main segments : 1/ construction (78% of revenues) including leisure and urban development activities (Colas; No. 1 worldwide in road), construction and public works, networks, electrical and thermal engineering and maintenance of facilities and construction and maintenance of transport and property development infrastructure. 2/ telecommunications (16% of revenues) with Bouygues Telecom): mobile telephone services, fixed telephony, Internet access. 3/media (6%; TF1).
Revenue is mainly derived from France (59%) and Europe (18%) but also North America (11%), Asia-Pacific (8%), Africa (3%) and Central and South America (1%).
Most of the EBITDA is coming from the telecom segment, while construction is more cyclical. The construction segment is expected to recover in 2021, while the company offer an attractive dividend yield of 5% in 2020.
Short term catalyst: Dividend, construction recovery.
This signal looks consistent with the Major Bullish trend in the European Construction sector.