Risk factor
Very high price volatility
Profitability factor
Undervalued vs peers
About
Azevedo & Travassos S.A. is a long-standing Brazilian engineering company, founded in São Paulo in 1922, with a comprehensive portfolio across various sectors. The firm undertakes extensive infrastructure and construction projects, including the development of critical transportation networks like highways, railways, subways, tunnels, avenues, and airports, as well as dams and major concrete structures such as bridges and viaducts. They also construct a wide range of buildings for residential, commercial, industrial, healthcare, and both public and private sector uses. In the energy domain, Azevedo & Travassos specializes in the construction and assembly of gas, oil, slurry, and water intake pipelines, alongside urban steel and polyethylene gas networks. Their services encompass the recovery and maintenance of existing oil and gas pipelines, and the establishment of essential stations for compression, pressure reduction, and rate measurement. Furthermore, the company provides onshore drilling, completion, and workover services for oil, gas, mining, and water wells, utilizing specialized rigs. Beyond these core engineering activities, Azevedo & Travassos is also involved in real estate development, covering the acquisition, sale, and incorporation of property projects. They participate in oil and natural gas exploration and production. Additionally, the company executes large-scale sanitation projects, including the construction of reservoirs, pipelines, water distribution networks, sewage systems, elevation stations, and sewage treatment facilities.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is trading at neutral levels on P/FCF.