Are you interested in investing in the stock market? Vinci shares are attracting increasing attention from investors. Find out why in this article.
To become the construction giant it is today, the European multinational Vinci had to go through a long, difficult and sometimes perilous journey. Vinci has become a major player in the construction sector and is now a world leader in the real estate construction market.
But before investing in Vinci, take the time to review everything you need to know about this company. Read our article for an introduction to the company alongside its history, activities, financial and stock market information.
Vinci is a group of European companies that specializes in construction. It also operates in the industrial, service and telecommunications sectors. The group ranks second worldwide in the concession business. It is present in more than one hundred countries throughout the world. Its subsidiaries include Vinci Concessions, Vinci Energies, Eurovia, Vinci Construction, Vinci Airports, Vinci Autoroutes, Vinci Facilities, Stade de France, Warbud Poland, Citeos and Equo Vivo1.
In the construction market, Vinci is the number one in France and the leader in Europe. The VINCI Construction Group alone is made up of numerous companies and subsidiaries, including BArW - Simplex, Facility management Faceo, RFF, Aeroportos de Portugal (ANA), the Savoyard company Benedetti-Guelpa and the Swedish companies Eitech and Infratek.
The geographical breakdown of the Group's activities by revenue is as follows:
The history of Vinci began in 1908 with two French engineers Alexandre Giros and Louis Loucheur. The company was then called SGE or Société Générale d'Entreprises. After six years of existence, SGE became one of the most important French construction and public works companies. From 1966 onwards, SGE was successively controlled by major groups such as CGE (Compagnie Générale de l'Électricité), Alcatel, Saint-Gobain and Vivendi Environnement.
When Vivendi Environnement withdrew from the company in 2000, SGE became Vinci. Since then, the company has developed through various activities. At the time, the takeover of Grands Travaux de Marseille (GTM) pushed it to the top, as Vinci became the world leader in construction and public works.
Vinci's main activities are grouped around four areas: industry, the service or commercial sector, telecommunications and infrastructure. Most of the activities are centered on construction, public works and infrastructures. The construction activities cover all sectors in the field, including study and design, building, major works, infrastructures and large projects: freeway, bridge, nuclear power station, industry and civil engineering
Many companies have been unable to recover from the global economic crisis caused by the spread of the new coronavirus discovered in China. Vinci was able to narrowly escape the situation, as the sector of activity in which the group operates did not experience any major interruption.
The Vinci Group is listed on the Paris stock exchange, referenced to the CAC 40. On March 26, 2021, the share price was quoted at €87.24, down -0.32% from the previous day's quotation.
Vinci's shareholders are mainly foreign institutional investors. Here is the breakdown of shareholders:
Here is the breakdown of sales by region and by activity in 2020 :
For 2020, the operating result was favorable despite the health crisis.
Debt : Vinci's debt represents between 35% and 45% of revenues. In relation to the balance sheet, stability and financial equilibrium are observed despite a high debt ratio.
In an analysis note made by 21 expert analysts, the trend is to urge to buy shares or to keep the shares. The price target is €96.03, a forecast from March 27, 202.
In any case, the construction market is very delicate, and it only takes one piece of information to send stock prices plummeting. So be careful when seeking to invest in this sector.