Bouygues SA (EN.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Bouygues SA, together with its subsidiaries, operates in the construction, telecom, and media sectors in France and internationally.The company designs, builds, renovates, operates, and deconstructs building, infrastructure, and industrial projects; develops urban planning, residential, and commercial projects; constructs and maintains roads and motorways, airport runways, ports, industrial logistics and commercial hubs, urban roads and amenities, external works, reserved-lane public transport facilities, leisure facilities, and environmental amenities, as well as undertakes civil engineering activities; produces and recycles construction materials; and distributes bitumen.It also engages in the construction, renewal, and maintenance of rail networks; fitting of road safety and signaling equipment; and laying and maintenance of pipes and pipelines.

In addition, the company produces TF1, TMC, TFX, TF1, and LCI complementary TV channels; operates TV Breizh, Histoire, Ushuaïa, and Serieclub channels; produces, broadcasts, and distributes content; produces cinemas; operates la seine musicale entertainment and concert venue; and licenses, publishes, and boards games, as well as musical and events.Further, it offers telecom services; mobile and fixed Internet services; and Bbox Miami, an Android box for TV.Bouygues SA was founded in 1952 and is based in Paris, France.

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1.b. Last Insights on EN

Bouygues SA's recent performance has been positively driven by its joint non-binding offer with Orange and Free-iliad Group to acquire a large part of Altice's telecommunications activities in France. The offer, valued at €17bn, aims to step up investments in the French telecom market. Despite the rejection of the bid by Altice, the move demonstrates Bouygues' strategic intent to expand its presence. Additionally, the company's monthly disclosure of shares and voting rights indicates a stable shareholder base.

1.c. Company Highlights

Last Price	43.17
Change Percentage	-0.46%
Open	43.5
Previous Close	43.37
Market Cap ( Millions)	16470
Volume	561440
Year High	43.71
Year Low	27.89
M A 50	40.56
M A 200	38.24

FCF Yield	19.71%
Dividend Yield	4.63%
ROE	8.46%
Debt / Equity	123.84%
Net Debt / EBIDTA	230.82%
Price To Book	1.35
Price Earnings Ratio	15.62
Price To FCF	5.07
Price To sales	0.29
EV / EBITDA	5.58

2. Bouygues' 9M 2025 Earnings: Solid Performance Amidst Challenges

Bouygues Group reported a 0.9% year-on-year increase in group sales to EUR 41.9 billion for the first 9 months of 2025. The current operating profit from activities (COPA) rose by EUR 95 million to EUR 1,814 million, while the COPA margin stood at 11.9%, down 0.5 points year-on-year due to the base effect related to the EURO 2024 football tournament. Earnings per share (EPS) was EUR 1.42, in line with analyst estimates. The net debt decreased by EUR 856 million year-on-year to EUR 7.6 billion.

Publication Date: Nov -06

                                    📋 Highlights
                                    Group Sales Growth:
                                                Bouygues Group sales increased 0.9% YoY to EUR 41.9 billion, driven by construction businesses despite Q3 stability and EUR -50 million Foreign Exchange impact.
Net Debt Reduction:
                                                Net debt improved by EUR 856 million to EUR 7.6 billion, reflecting strong financial management and operational efficiency.
Construction Backlog Strength:
                                                Bouygues Construction’s backlog reached EUR 17.2 billion (stable QoQ), with EUR 13.9 billion order intake in Equans, despite a EUR 0.7 billion YoY decline.
Telecom Customer Growth:
                                                Bouygues Telecom added 371,000 FTTH and 231,000 mobile customers in 9M 2025, with sales up 5% YoY and stable EBITDA at EUR 1,505 million.
TF1 Profit Decline:
                                                TF1’s operating profit fell EUR 94 million to EUR 509 million, leading to revised 2025 margin guidance of 10.5-11.5% due to higher energy costs and G&A expenses.

                                

Segment Performance

The construction businesses drove the group's sales growth, with a high backlog of EUR 32.1 billion providing good visibility. Bouygues Construction's backlog stood at EUR 17.2 billion, while Equans' backlog was stable year-on-year at EUR 25.8 billion. Bouygues Telecom's commercial performance remained solid, with 371,000 new FTTH customers and 231,000 new mobile plan customers during the first 9 months. TF1's media sales decreased by 1% year-on-year, and the current operating profit from activities was down EUR 94 million to EUR 509 million.

Guidance and Outlook

The Bouygues Group is targeting a slight increase in current operating profit from activities versus 2024. The group's 2025 sales are expected to be slightly up versus 2024 at constant exchange rates. Equans' target for 2027 margin remains unchanged at 5%. As Pascal Grangé, Deputy CEO, noted, "Bouygues Construction's Q3 performance was strong, with a COPA figure that exceeded expectations," driven by its strategic plan to raise profitability to 3-3.5%.

Valuation

With a P/E Ratio of 14.41 and an EV/EBITDA of 5.32, Bouygues' valuation appears reasonable. The Dividend Yield stands at 5.02%, indicating an attractive return for income investors. The ROE of 8.46% suggests a decent return on equity. Analysts estimate next year's revenue growth at 1.8%, which is slightly higher than the current year's growth rate.

Challenges and Opportunities

The slowdown in data centers and EV battery gigafactory is a challenge for Equans, but the company is optimistic about future trends in the U.S. data center market. The Bouygues Group is also exploring M&A opportunities in other business lines, independent of the SFR consolidation project. The group's strong financial structure and liquidity position it well for future growth.

3. NewsRoom

Bouygues: Monthly disclosure of the total number of shares and voting rights

Dec -01

Source:

Bouygues: Disclosure of trading in own shares

Nov -17

Source:

A Fresh Look at Bouygues (ENXTPA:EN) Valuation Following 45% Year-to-Date Share Price Surge

Nov -14

Source:

BOUYGUES : Disclosure of trading in own shares

Nov -12

Source:

Bouygues (BOUYF) Nine Months 2025 Earnings Call Highlights: Strong Construction Sales and ...

Nov -06

Source:

Bouygues: Nine-month 2025 results

Nov -05

Source:

Bouygues: Monthly disclosure of the total number of shares and voting rights

Nov -03

Source:

Tracking the Narrative for Bouygues as Analyst Sentiment and Fair Value Begin to Shift

Oct -23

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.88%)

6. Segments

Equans

Expected Growth: 1.8%

Equans' 1.8% growth is driven by increasing demand for energy-efficient solutions, expansion into new geographies, and strategic acquisitions. The company's focus on digitalization and innovation also contributes to its growth, as well as its ability to capitalize on the trend towards urbanization and sustainable development.

Colas

Expected Growth: 1.9%

Colas from Bouygues SA's 1.9% growth is driven by increasing infrastructure investments, urbanization, and government initiatives. Additionally, the company's focus on sustainable and innovative solutions, such as renewable energy and smart roads, contributes to its growth. Furthermore, strategic acquisitions and partnerships have expanded its geographic presence and diversified its service offerings.

Bouygues Construction

Expected Growth: 1.7%

Bouygues Construction's 1.7% growth is driven by increasing demand for sustainable infrastructure, urbanization, and digitalization in the construction industry. The segment benefits from Bouygues SA's diversified portfolio, strong order book, and strategic acquisitions. Additionally, the company's focus on innovation, energy-efficient solutions, and public-private partnerships supports its growth momentum.

Bouygues Telecom

Expected Growth: 2.1%

Bouygues Telecom's 2.1% growth is driven by increasing mobile data consumption, expansion of 4G and 5G networks, and growing demand for converged fixed-mobile services. Additionally, the company's focus on customer experience, network quality, and competitive pricing strategies contribute to its growth momentum.

TF1

Expected Growth: 2.3%

TF1's 2.3% growth is driven by increasing advertising revenue, fueled by France's economic recovery and rising consumer spending. Additionally, the company's focus on digital transformation, including the development of its streaming platform, TF1 MAX, and strategic partnerships, such as the acquisition of Gameloft, contribute to its growth momentum.

Bouygues Immobilier

Expected Growth: 1.9%

Bouygues Immobilier's 1.9% growth is driven by increasing demand for sustainable and energy-efficient buildings, strategic expansion into urban renewal projects, and a strong backlog of orders. Additionally, the French government's focus on urban development and infrastructure investments supports the segment's growth.

Bouygues SA and Other

Expected Growth: 2.0%

Bouygues SA's 2.0% growth is driven by its diversified business model, strong order book in construction and telecom, and increasing demand for energy-efficient solutions. The company's focus on innovation, digital transformation, and cost savings initiatives also contribute to its growth. Additionally, the growth is supported by the French government's investments in infrastructure and renewable energy.

7. Detailed Products

Construction

Bouygues Construction is a global player in the construction industry, providing a range of services including building, civil engineering, and energy and services.

Real Estate

Bouygues Immobilier is a leading real estate developer in France, offering a range of properties including residential, commercial, and office spaces.

Telecom

Bouygues Telecom is a French telecommunications company providing a range of services including mobile, fixed, and internet services.

Energy and Services

Bouygues Energies & Services is a leading provider of energy and services solutions, including energy efficiency, facilities management, and maintenance.

Colas

Colas is a global leader in road construction and maintenance, providing a range of services including road construction, maintenance, and materials.

8. Bouygues SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Bouygues SA operates in the construction and services industry, where substitutes are limited. However, the company faces some threat from substitutes in the form of alternative materials and technologies.

Bargaining Power Of Customers

Bouygues SA's customers have limited bargaining power due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

Bouygues SA's suppliers have moderate bargaining power due to the company's large scale of operations and diversified supply chain.

Threat Of New Entrants

The threat of new entrants in the construction and services industry is low due to high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The construction and services industry is highly competitive, with several established players competing for market share. Bouygues SA faces intense rivalry from its competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	49.74%
Debt Cost	4.76%
Equity Weight	50.26%
Equity Cost	8.34%
WACC	6.56%
Leverage	98.95%

11. Quality Control: Bouygues SA passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Bouygues

A-Score: 6.9/10

Value: 8.2

Growth: 5.3

Quality: 3.7

Yield: 8.1

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

ACS

A-Score: 6.9/10

Value: 5.8

Growth: 6.6

Quality: 4.4

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

Strabag

A-Score: 6.6/10

Value: 8.1

Growth: 4.7

Quality: 6.2

Yield: 8.1

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

HOCHTIEF

A-Score: 6.1/10

Value: 5.3

Growth: 6.6

Quality: 4.8

Yield: 5.6

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

Budimex

A-Score: 4.5/10

Value: 2.4

Growth: 4.8

Quality: 5.4

Yield: 8.8

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Arcadis

A-Score: 4.3/10

Value: 4.7

Growth: 6.3

Quality: 5.8

Yield: 3.1

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-7.91%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.56%

Bouygues SA - FR0000120503

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EN

1.c. Company Highlights

Higher Yield

Less Volatile

Cheaper

Earnings Miss

Revenues Beats

Earnings Beats

Lower Quality

Revenues Miss

Average Quality

2. Bouygues' 9M 2025 Earnings: Solid Performance Amidst Challenges

Segment Performance

Guidance and Outlook

Valuation

Challenges and Opportunities

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.88%)

6. Segments

Equans

Expected Growth: 1.8%

Colas

Expected Growth: 1.9%

Bouygues Construction

Expected Growth: 1.7%

Bouygues Telecom

Expected Growth: 2.1%

TF1

Expected Growth: 2.3%

Bouygues Immobilier

Expected Growth: 1.9%

Bouygues SA and Other

Expected Growth: 2.0%

7. Detailed Products

Construction

Real Estate

Telecom

Energy and Services

Colas

8. Bouygues SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Bouygues SA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.17$

Current Price

43.17$

Potential

-0.00%

12.e Scoring ^Insights

12.f DCF ^BETA