Tecnicas Reunidas (XMAD:TRE) Financial Strength: 6 (As of Jun. 2026) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XMAD:TRE Tecnicas Reunidas SA XMAD:TRE
69 GF Score
Price €25.68
GF Value €22.00
Valuation Modestly Overvalued
! 2 Warning Signs
View Full Analysis

What is Tecnicas Reunidas Financial Strength?

Tecnicas Reunidas XMAD:TRE +2.15% 69 Financial Strength is 6 as of Jun. 2026, which is at its 10-year median of 6.00. GuruFocus rates XMAD:TRE with a GF Score™ of 69/100 and a GF Value™ of €22.00 (Modestly Overvalued). The stock has 2 warning signs investors should review.

Tecnicas Reunidas has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Tecnicas Reunidas's Interest Coverage for the quarter that ended in Jun. 2026 was 1.90. Tecnicas Reunidas's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.19. As of today, Tecnicas Reunidas's Altman Z-Score is 1.73.


Tecnicas Reunidas  (XMAD:TRE) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Tecnicas Reunidas has the Financial Strength Rank of 6.


Tecnicas Reunidas Financial Strength Related Terms


XMAD:TRE vs PWR, FIX, EME: Financial Strength Comparison

For the Engineering & Construction subindustry, Tecnicas Reunidas's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Tecnicas Reunidas Financial Strength vs Construction Industry

For the Construction industry and Industrials sector, Tecnicas Reunidas's Financial Strength distribution charts can be found below:

* The bar in red indicates where Tecnicas Reunidas's Financial Strength falls into.


XMAD:TRE
69GF Score
Tecnicas Reunidas SA XMAD:TRE
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tecnicas Reunidas Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Tecnicas Reunidas's Interest Expense for the months ended in Jun. 2026 was €-15 Mil. Its Operating Income for the months ended in Jun. 2026 was €28 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €897 Mil.

Tecnicas Reunidas's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*28.241/-14.863
=1.90

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Tecnicas Reunidas's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(234.649 + 897.469) / 5903.284
=0.19

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Tecnicas Reunidas has a Z-score of 1.73, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.73 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 6 mean?
Tecnicas Reunidas (XMAD:TRE) has a Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Tecnicas Reunidas and its competitors. This is near median its historical median of 6.00. Over the past decade, Tecnicas Reunidas' Financial Strength has ranged from 3.00 to 8.00.
Is Tecnicas Reunidas' Financial Strength too high?
Tecnicas Reunidas' current Financial Strength of 6 is near median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Tecnicas Reunidas has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tecnicas Reunidas' Financial Strength compare to PWR and FIX?
Tecnicas Reunidas' Financial Strength of 6 can be compared against companies in the Construction industry. Historically, Tecnicas Reunidas' own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Construction company?
A good Financial Strength depends on the Construction industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Tecnicas Reunidas and its competitors. Tecnicas Reunidas's current Financial Strength is 6, which is near median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tecnicas Reunidas stock overvalued right now?
Based on GuruFocus' analysis, Tecnicas Reunidas (XMAD:TRE) is currently considered Modestly Overvalued. The stock's GF Value™ is €22.00, compared to a current price of €25.68 — trading 16.7% above its estimated fair value. The current Financial Strength is 6, which is near median its 10-year median of 6.00. Tecnicas Reunidas' overall GF Score™ is 69/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Tecnicas Reunidas (XMAD:TRE), the current Financial Strength is 6 as of Jun. 2026. 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 Tecnicas Reunidas (XMAD:TRE) Overvalued in 2026?

Based on GuruFocus' analysis, Tecnicas Reunidas stock appears to be overvalued. The current stock price of €25.68 is trading 16.7% above its estimated GF Value™ of €22.00. GuruFocus considers Tecnicas Reunidas to be Modestly Overvalued.

Key valuation signals for XMAD:TRE:

  • Financial Strength: 6 (near median its 10-year median of 6.00)
  • GF Value™: €22.00 vs. price of €25.68 (16.7% above fair value)
  • GF Score™: 69/100 with 2 warning signs

No single metric tells the full story. See the XMAD:TRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tecnicas Reunidas Business Description

Address Arapiles Street, 14, Madrid, ESP, 28015
Tecnicas Reunidas SA is a general contracting company. It engages in engineering, design and construction of industrial facilities for international customers including principal national oil companies and multinational companies. The firm's majority of business is focused on large turnkey industrial projects and it also offers engineering, management, start-up and operating services for industrial plants. Its business areas are oil and gas, power, infrastructures and industries. The company mainly operates in Spain, Middle East, Latin America, Asia and the Mediterranean region.
69GF Score

Get the complete analysis for XMAD:TRE

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€25.68
Price
€22.00
GF Value