Bouygues is one of the most closely-observed stocks on the CAC 40. Thinking about investing? First, take a look at our comprehensive guide.
The CAC 40 lists many stocks that attract the interest of both novices and seasoned investors. Bouygues is one of its most sought-after stocks.
Bouygues is a large multi-sector company with a relatively stable share price. Refine your stock market strategy by taking a look at this article.
Bouygues was founded in 1952 by Francis Bouygues during the post-World War II “reconstruction” period in France. Bouygues made the move to specialize in the construction of buildings, such as low-cost housing, in 1955.
In the 1960s, the company expanded in several sectors, such as public works and civil engineering. From 1980 to 1990, the company moved into media with the takeover of TF1 in 1984, the creation of LCI in 1994, and the launch of Bouygues Telecom in 1996.
Bouygues is now a diversified international industrial group with three main business lines.
The group also has holdings in companies such as Alstom, FlyingWhales and Alpiq.
The company operates over 81 countries on five continents and employs nearly 130,000 people.
The main shareholders of the Bouygues group include:
Bouygues has initiated partnerships in order to consolidate its place in several different sectors. The include Alstom, SFR, Fnac-Darty, CellNex, and Lagardère.
Bouygues has direct competitors in several sectors. These include:
Bouygues’ sales declined by 08.5% as a result of the global health crisis. Bouygues achieved revenue of 34,694 million euros in 2020, compared to 37,929 million in 2019, with a net income group share of 696 million euros for the year 2020.
Bouygues sales can be broken down by product family as follows:
The geographical breakdown of Bouygues sales is as follows: France (59.1 %), Europe (17.7 %), North America (11.1 %), Asia-Pacific (8 %), Africa (2.8 %), Central and South America (0.9 %) and Middle East (0.4 %)
Bouygues was listed on the stock exchange in 1970. Bouygues shares are included in the French CAC40 stock market index. It is listed in compartment A on Euronext Paris, in the heavy construction sector. The market capitalization of Bouygues is 13,166.68 million euros. The number of shares available is 380,759,842.
Diversification of activities is a major asset for the company, which is among the market leaders for all its activities. This is reassuring for investors.
The group's huge order book in the construction and public works sector worldwide makes Bouygues stock very attractive. This is reassuring as to the company’s long-term financial structure and influences share prices.
Health measures in various countries also impact share prices. The company has to adapt to these measures, especially in the building and construction sector in Europe, where it generates the majority of its sales.
In the telecom sector, Bouygues Telecom is making strong progress on mobile compared to its competitors. Bouygues' performance on the transition to fixed broadband FttH may influence the share price.
In the media sector, it faces online competitors and other channels that pose a threat to the TF1 group. The share price can thus be influenced by the digitalization strategies and content diversification of the group's channels.