Rankings Construction & materials Arcadis
Arcadis
82
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Quality of growth−5
- Margin−4
- Governance−4
Strengths
- Order book and raised guidance+3
- Buybacks and dividend from FCF+2
How the score is built
From 100 to 82, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 46.66 EUR
- Median analyst target
- 52.50 EUR
- Upside to median
- +12.5%
- Analysts
- 9
- Target range
- 41.50 – 54.00 EUR
- 52-week change
- +12%
- P/E (trailing)
- 20.0
- Forward P/E
- 13.6
- PEG
- n/a
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 5 findings−15 of −30
- −4MarginOperating margin 6.6% and net margin 4.2% (TTM) vs 8.2% and 4.9% in 2024. The operating EBITA margin fell from 11.5% to 11.1% in 2025, and the 2026 target has been cut from 12.5% to 11.7–12.0%.
- −5Quality of growthOrganic growth fell from 4.5% in 2024 to −0.5% in 2025 and only 1.5% in H1 2026; net revenue in H1 was €1,907m (+1%). Gross revenue has fallen from €5.0bn in 2023 to €4.9bn (TTM), and Places has fallen from 1.94 to €1.76bn.
- −2ROICROIC 11.5% (TTM) vs 14.9% in 2024 and 15.3% in 2021 – falling trend, only slightly above WACC of 7.5%.
- −2Capital allocationMost of the architecture business and China are now to be divested; much of the architecture came with the IBI acquisition in 2022 (about €0.8bn of cash acquisitions that year). Management itself expects about 100 bp of margin lift from the clean-up – an admission that parts of the portfolio have diluted the margin.
- −2MoatA gross margin of only 16.4% in a fragmented consulting market with larger competitors (WSP, AECOM, Jacobs, Stantec); activity follows public budgets and clients' willingness to invest, and pricing power is limited.
Price
Today's multiples against the company's own history and its peers. · 1 finding−2 of −35
- −2Multiples vs own historyForward P/E 12.3 vs 10.5–22.0 in 2021–25 (average about 16); EV/EBITDA 11.2 vs 10.5–14.8; P/FCF 9.9 vs 8.3–16.8; FCF yield 10% (about 8% after leases). Cheap vs history, but the price reflects falling growth, margin and ROIC.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−9 of −35
- −4GovernanceThe board unanimously rejected WSP's bids of €48.50 and €51.50 (half cash, half shares) without negotiating; WSP withdrew on 23/9, and the stock trades about €10 below the last bid. VEB criticises the board for not explaining how it tested the bid. Lovinklaan and Katalys together own about 24% and back management, while insiders own only 0.08%.
- −3Execution (restructuring)The 2027–29 strategy requires divestment of architecture and China and about 1,000 fewer overhead positions in 2027, while the operating EBITDA margin must rise from about 14.5% to 'mid- to high-teens' – ambitious after a history of missed margin and growth targets.
- −2DebtNet debt has risen from €809m at year-end to €1,051m (June 2026), partly owing to buybacks; interest cover 3.3x and interest paid up from €28m (2023) to €91m (TTM). Altman Z 2.7.
Plus
Only documented strengths. · 2 findings+5 of +15
- +3Order book and raised guidanceRecord order intake of EUR 2.2bn in H1 (+10.3%) and record order backlog of EUR 4.0bn; organic growth in Q2 2.2%, and growth guidance for 2026 raised from flat to low single digit.
- +2Buybacks and dividend from FCFBuyback EUR 177m plus dividend EUR 89m (TTM) vs FCF EUR 356m (EUR 283m after leasing); share count fell 3% in a year.
Caveats
What the score does not capture, or where the data is weak.
Consulting engineering business – no industry fits exactly; 'Construction & materials' is the closest. Arcadis reports on net revenue (about EUR 3.8bn) and 'operating EBITA'; stockanalysis uses gross revenue (EUR 4.9bn) and an EBITDA without lease depreciation, so debt/EBITDA of 3.1 is exaggerated relative to the company's own definition. The share price fell about 10% intraday on 23/9 when WSP abandoned the bid; price targets (latest 4/8) partly reflect bid speculation. CMD 29/9 gave targets for 2027–29, but the divestment of architecture and China and 1,000 positions cost one-off costs, which are not quantified. Peer multiples (WSP, Stantec) are not retrieved. Q3 trading update 29/10.
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