The shares of the 6+1 construction companies of the Athens Stock Exchange continued with significant returns in the second quarter of 2024, taking advantage of the positive pace of the sector and the multiple projects throughout Greece, resulting in a combined value of more than 8 .7 billion euros.
Based on the capitalizations of the six purely construction companies (GEK TERNA, Ellaktor, Intrakat, AVAX, Domiki Kritis, EKTER) the total market value of the sector exceeds 3.8 billion euros.
However, Mytilineos Group, which, although it is not a purely construction company, could also be included as it has a very strong footprint in the sector through METKA.
In this context, the market value of the listed 6+1 construction companies jumps to 8.7 billion euros, given that the capitalization of Mytilineos is estimated at 4.9 billion euros.
GEK TERNA, which has succeeded in many public tenders (Attiki Odos, BOAK etc.), sees its capitalization exceeding 1.7 billion euros. The stock has gained nearly 30% this year, jumping to a 24-year high. And most importantly, the P/E ratio is at a very attractive 8.6x.
Despite the sale of the construction company (AKTOR) and energy company (Wind), Ellaktor is doing well on the Athens Stock Exchange (+3% in 2024, +28% in 12 months), with a value of over 900 million euros. Although it is about 8.5% away from the highs of the year (2.8 euros), investors are waiting for the financial figures of 2023, the new business strategy and the dividend, in order to reassess the prospects of the listed company. Today’s 2.6 euros, however, corresponds to a P/E ratio of 17.7x.
Intrakat, the industry’s second largest company based on backlog, is recording a rally of more than 17% in 2024 and more than 240% within 12 months. The company, which has a stock market value of 850 million euros, is a serious candidate for transition to the FTSE 25, in the upcoming May restructuring.
Contrary to the rest of the competition, AVAX does not seem to be going through the best possible trading year, as it has lost 15% since the beginning of 2024, with capitalization at 230 million euros. Of course, the stock is still earning at least 100% in the 12-month period, while the P/E is at the attractive levels of 6.2x.
Smaller companies
Domiki Kritis has registered the largest re-rating, as it has soared more than 500% in the last 12 months, reaching 4.8 euros a few weeks ago (a 23-year high). The arrival of Dimitris Koutras as a shareholder and manager has undoubtedly changed the story of the Cretan company. However, this should also be reflected in profitability, as the valuation of Domiki Crete stands at P/E 60x.
Finally, the EKTER share, after the recent jump to 23-year highs (4.5 euros), has slightly corrected by 13% and is currently trading close to 4 euros. Market capitalization is estimated at 45 million euros, which translates to a P/E ratio of 7.9x.
The stock market value of construction companies
• Mytilineos 4.9 billion euros
• GEK TERNA 1.7 billion euros
• Ellaktor 919 million euros
• Intrakat 841 million euros
• AVAX 233 million euros
• Domiki Kritis 74 million euros
• EKTER 44 million euros
