Técnicas Reunidas (TNISY) and Its Rivals Critical Review

Dividends

Técnicas Reunidas pays an annual dividend of C$0.10 per share and has a dividend yield of 1.5%. Técnicas Reunidas pays out 20.7% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 1.9% and pay out 23.9% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Técnicas Reunidas and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Técnicas Reunidas	N/A	N/A	13.89
Técnicas Reunidas Competitors	$9.34 billion	$451.89 million	-5,961.80

Técnicas Reunidas’ peers have higher revenue and earnings than Técnicas Reunidas. Técnicas Reunidas is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

48.3% of shares of all “Construction & Engineering” companies are held by institutional investors. 20.8% of shares of all “Construction & Engineering” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Técnicas Reunidas and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Técnicas Reunidas	N/A	N/A	N/A
Técnicas Reunidas Competitors	-7.58%	11.26%	4.19%

Summary

Técnicas Reunidas peers beat Técnicas Reunidas on 6 of the 9 factors compared.

About Técnicas Reunidas

Técnicas Reunidas, S.A., an engineering and construction company, engages in the design and management of industrial plant projects worldwide. It operates through Oil and Gas, Power, and Other Industries segments. The Oil and Gas segment offers engineering, procurement, and construction services in oil processing operations and chemical production and processing operations; services related to the natural gas production and extraction value chain, such as production, processing, storage, and transportation; constructs, revamps, and expands refining plants; designs and builds auxiliary services and other refining units; and designs and constructs monomers, polymers and plastics, chemical, and fertilizer producing and processing plants. The Power segment provides consulting, engineering, procurement, and construction services for a range of electricity generating plants comprising conventional thermal plants, combined cycle power plants, gasification integrated with combined cycle, nuclear plants, co-generators, solar plants, fuel cells, solid waste, and biomass technology, as well as plant operation and maintenance services; and supplies turnkey plants. The Other Industries segment undertakes projects in various areas that include airports, industrial facilities, and desalination and water treatment plants, as well as projects for public authorities and other organizations, including management of car parks, and sports centers. It is also involved in the property development and machinery wholesale business; and provision of inspection, quality control, and technical consulting services. The company was formerly known as Lummus Española, S.A. and changed its name to Técnicas Reunidas, S.A. in 1972. Técnicas Reunidas, S.A. was incorporated in 1960 and is based in Madrid, Spain.