Conduril interim results: still going strong

Conduril reports twice a year, and today they released the interim results (in Portuguese) for the first half of 2013. Despite the low levels of construction activity in Portugal Conduril is doing just fine because of their foreign operations: in the period just 7% of their revenue originated from Portugal. New is the entry in Zambia where they won a contract to expand the Great East Road. I have updated the table below to include the latest results:

Historical Conduril results (2013 interim update)As is visible revenue was down a little bit while the more important metric: net income, went up a bit. I don’t think that the decline in revenue is signaling a trend: the order book actually went up from 610 million at the beginning of the year to 680 million at the end of the period. If we take book value as a proxy for intrinsic value we see that Conduril continues to grow at a healthy speed (while paying out dividends).

The interim report doesn’t include a statement of cash flows, but you don’t need to be a rocket scientist to figure out that the amount of free cash flow wasn’t a positive number the first half year. The amount of cash available dropped significantly while receivables went up. For Conduril this is simply the nature of the beast. Cash flows are lumpy because the company works on big projects that can take years to finish, and most of the cash is only received when the projects are completed.

I continue to view Conduril as a pretty solid business, but despite the fact that the share price has been going up significantly this year it’s still trading at 3.1x P/E, 0.45x P/B and 1.35x EV/EBITDA ratios. That’s just way too cheap in my opinion.


Long Conduril

10 thoughts on “Conduril interim results: still going strong

  1. Alex

    Congrats for your job,

    It´s quite difficult to find such a good website.

    I have a question regarding interim results, how can we get them? I have been able to find them in the company website, but no news from the interim results.

    Thank you very much for answer and your great job.

      1. eamelink

        How does that work, proving that you own the shares? I have a bunch as well, I think via the same broker as you, Binck.

        1. Alpha Vulture Post author

          I gave them a copy of the latest transaction statement that including a Conduril transaction. If you give me your e-mail I can also give it to you (the interim report obviously).

  2. Mathias

    Hej , very intresting site and artikel but its not very liquide this share . Anyways very nice job . Any more poeple that are intresting in finding such a good companys ? Maybe write an artikel on that ?

    greats Mathias

  3. Mathias

    Hi , I wanted to place an order on Conduril but its quite impossible the price is 43,50

    and check the order book

    Bied 43,50 9:51 35
    Laat 55,00 6:15 150

    is this normal? btw already 3 days without any movement

  4. Maarten Visser

    Hi Alphavulture,

    I was wondering if you would be so kind to mail me the interim report of Conduril. I made a list of the financial condition of the 11 biggest Portugese construction companies, I would like to send it you but without a normal mailadres the spreedsheet is getting all messed up.

    I also intend to do some valution work after the disstressed debt deal that the Soares da Cost-group got from the Angolese investor, Antonio Musquito. Can be interesting I think.

    Happy investing!

    Maarten Visser


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