The following report presents the financial statements of two leading French construction groups: Bouygues and Vinci. With the help of several economic and financial metrics, we will analyze and assess the companies' strengths and weaknesses and give an objective opinion to potential investors. The various sections involve Strategic Presentation, Margin Analysis, Working Capital Analysis, Risk Analysis, DuPont de Nemours Analysis and a Market Analysis.
Bouygues is a large industrial French group founded in 1952 by Francis Bouygues. The company focuses on two major activity sectors. On one hand, it is the leading player in the French market in the construction sector while simultaneously being a major European player in the media and telecommunications business.
Vinci, a French company created in 1899, has evolved over the century to emerge as a force to be reckoned with in the construction market as well as a major European player in concessions and associated services.
[...] For the next year, the dividends yield. Vinci is a solid company: the dividend will probably be paid for generations. IX. Conclusion We have seen within this report that both companies are properly managed in term of financial aspect. Within some of those aspects one company may be better than another, but it is mainly due to operational and strategic choices. The two companies are not operating in the same sectors. Of course they have the construction business in common, but on this specific sector both companies are operating and running the same and therefore both are the same on this aspects. [...]
[...] Although we can notice that Vinci is slightly less touched. In addition we can say that Vinci has an important number of employees due to the business sector he is in, large concessions such as highways and airports require important workforce to be run. In the meantime the Nicolas LELORRAIN, Financial Analysis Page 8 Vinci & Bouygues Investors Analysis construction business in which both companies are, is closely dependant of the market, if the market is down the number of employees is down and vice and versa Fixed Assets per Employee: We are now going to evaluate the fixed assets per employee (See Table 5. [...]
[...] As for Vinci, vice versa, the rate is significantly decreasing in comparison with the year 2005 because of increased current liabilities Working Capital: A measure of a company's efficiency and its short-‐term financial health. Working capital also gives investors an idea of the company's underlying operational efficiency. We can find those values (See Table 13. on page 17) directly in Osiris data Table 13: Working Capital in M€. That indicates the current situation of the companies in terms of how much money a company will allocate after paying payables. We can observe the pick for Bouygues and Vinci in year 2008, which is caused by increased in inventories and receivables. [...]
[...] Since 2005, the market share of Vinci increases by 60% whereas Bouygues' one has still the same price. Figure 36: Vinci Share Price Nicolas LELORRAIN, Financial Analysis Page 39 Vinci & Bouygues Investors Analysis Figure 37: Bouygues Share Price Consensus In order to understand the market situation of these two companies we can use several ratios Earnings per Share: The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability (See Figure 38. [...]
[...] on page 30) Vinci is doing better than Bouygues. And, as we have already said, Vinci's concessions business sector is not really affected by the crisis, whereas Bouygues's telecom and media businesses are directly suffering the crisis consequences. Nicolas LELORRAIN, Financial Analysis Page 29 Vinci & Bouygues Investors Analysis 1,600M€ 1,500M€ 1,400M€ 1,300M€ 1,200M€ 1,100M€ 1,000M€ 900M€ 800M€ Bouygues 2009 Vinci Figure 25: Net Income in M€ Sales: The next elements are the sales (See Table 27. on page Table 27: Sales in M€ 36,000M€ 34,000M€ 32,000M€ 30,000M€ 28,000M€ 26,000M€ 24,000M€ 22,000M€ 20,000M€ Bouygues Vinci Figure 26: Sales in M€ Regarding those tendencies (See Figure 26. [...]
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