Fugro: A Contrarian Long Idea

Jun. 22, 2025 10:40 AM ETFugro N.V. (FUGRF) StockFUGRF
(8min)

Summary

  • Fugro's Q1 2024 results showed weaker revenue and margins, but management remains confident in achieving mid-term EBIT margin targets.
  • Strong free cash flow generation and a healthy balance sheet position Fugro well, with net debt at just 0.5x trailing EBITDA despite heavy capex.
  • Current valuation is attractive, with Fugro trading at a low EV/EBITDA multiple and consensus estimates projecting significant EBITDA growth by 2027.
  • I view the 2025 dip as a buying opportunity for long-term investors, with a fair value estimate of €15.5-16 per share based on future cash flows.
  • Looking for more investing ideas like this one? Get them exclusively at European Small-Cap Ideas. Learn More »
Zeilboten afgemeerd in de buurt van Survey vessel Fugro Searcher

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Introduction

Since the last time I discussed Fugro (OTCPK:FUGRF), the company has published its FY 2024 annual results as well as a trading update for the first quarter of this year. As I was bullish on Fugro, I wanted to see

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This article was written by

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I have written put options on Fugro. Those are currently out of the money, but that situation may change.

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