Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Construcciones y Auxiliar de Ferrocarriles Cash Conversion Cycle Related Terms
Construcciones y Auxiliar de Ferrocarriles Cash Conversion Cycle Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Construcciones y Auxiliar de Ferrocarriles Cash Conversion Cycle Chart
Construcciones y Auxiliar de Ferrocarriles Annual Data
FRA:AXF1 vs UNP, CSX, NSC: Cash Conversion Cycle Comparison
For the Railroads subindustry, Construcciones y Auxiliar de Ferrocarriles's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Construcciones y Auxiliar de Ferrocarriles Cash Conversion Cycle vs Transportation Industry
Construcciones y Auxiliar de Ferrocarriles Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1) has a Cash Conversion Cycle of 38.72 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Construcciones y Auxiliar de Ferrocarriles and its competitors.
Is Construcciones y Auxiliar de Ferrocarriles' Cash Conversion Cycle too high?
Construcciones y Auxiliar de Ferrocarriles' current Cash Conversion Cycle is 38.72. The Transportation industry median Cash Conversion Cycle is 20.26. Construcciones y Auxiliar de Ferrocarriles' value of 38.72 is 91.2% above this industry median. Overall, Construcciones y Auxiliar de Ferrocarriles has a GF Score™ of 95/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Construcciones y Auxiliar de Ferrocarriles' Cash Conversion Cycle compare to UNP and CSX?
Construcciones y Auxiliar de Ferrocarriles' Cash Conversion Cycle of 38.72 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 20.26. Construcciones y Auxiliar de Ferrocarriles' value of 38.72 is 91.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Transportation company?
The median Cash Conversion Cycle among Transportation companies is 20.26, based on 1,000 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Construcciones y Auxiliar de Ferrocarriles's current Cash Conversion Cycle of 38.72 is 91.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Construcciones y Auxiliar de Ferrocarriles and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 20.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Construcciones y Auxiliar de Ferrocarriles's current Cash Conversion Cycle is 38.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Construcciones y Auxiliar de Ferrocarriles stock overvalued right now?
Based on GuruFocus' analysis, Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1) is currently considered Significantly Overvalued. The stock's GF Value™ is €42.12, compared to a current price of €62.30 — trading 47.9% above its estimated fair value. The current Cash Conversion Cycle is 38.72 and 91.2% above the Transportation industry median of 20.26. Construcciones y Auxiliar de Ferrocarriles' overall GF Score™ is 95/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1), the current Cash Conversion Cycle is 38.72 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1) Overvalued in 2026?
Based on GuruFocus' analysis, Construcciones y Auxiliar de Ferrocarriles stock appears to be overvalued.
The current stock price of €62.30 is trading 47.9% above its estimated GF Value™ of €42.12.
GuruFocus considers Construcciones y Auxiliar de Ferrocarriles to be Significantly Overvalued.
Key valuation signals for FRA:AXF1:
Cash Conversion Cycle: 38.72
GF Value™: €42.12 vs. price of €62.30 (47.9% above fair value)
Industry Position: 91.2% above the Transportation median
No single metric tells the full story. See the FRA:AXF1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Construcciones y Auxiliar de Ferrocarriles Business Description
Construcciones y Auxiliar de Ferrocarriles SA is a Spain-based company that offers comprehensive railway solutions. The company's train-related products comprise high-speed rolling stock, wheelsets, traction and communication systems, signaling systems, and related services including vehicle maintenance, vehicle upgrading and refurbishment, and aftersales technical supports. In addition to supplying train-related products, the company also helps customers conduct viability studies, civil work, electrification projects, and system operation. The company operates under concession or turnkey models. Construcciones y Auxiliar de Ferrocarriles has a global presence, with Europe and Brazil being the two largest markets.
95GF Score
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