Cimic (ASX:CIM) share price struggles despite $1.8b contract win

It’s been a mixed week for the ASX industrials company so far.
The post Cimic (ASX:CIM) share price struggles despite $1.8b contract win appeared first on The Motley Fool Australia. –

The Cimic Group Ltd (ASX: CIM) share price fell slightly today despite a major government contract victory.

At market close, the Cimic share price was $16.46, down 0.3%.

Let’s take a look at what might have impacted investor sentiment for Cimic today.

Major project win

The mining, construction and engineering services company informed investors of a major $1.8 billion New South Wales government contract win for its subsidiary CPB Contractors.

The company has been selected for boxes and tunnelling works on the Sydney Metro railway line. It’s expected to deliver roughly $1.35 billion in revenue.

The train line will run between the suburb of St Mary’s and the new Western Sydney Airport station, due for completion in 2026. CPB Contractors is already working on the project.

The construction involves the design and construction of 9.8km of twin tunnels and works on several train stations.

Speaking on the contract win today, Cimic executive chairman and CEO Juan Santamaria said:

This is a strategic transport investment that will generate long lasting benefits for the people of Western Sydney and provide a significant boost to jobs during construction.

Today’s news comes amid some negative publicity for the company in recent days. Shares in Cimic tumbled more than 13% on Monday amid claims the company underpaid workers after it sold its Middle Eastern company BIC Contracting.

The plunge sparked a trading halt and a price query from the ASX, prompting the company to issue a statement assuring the market it was working to ensure the employees received their entitlements.

That took the shine off the company’s shares finishing in the green on Friday last week. That coincided with news of a commercial settlement on the West Gate Tunnel project in Melbourne.

Cimic share price snapshot

The Cimic share price has plunged the past 12 months, falling almost 34%. Year to date, the company’s shares are down 32%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned more than 11% to investors in the past year.

The company commands a market capitalisation of roughly $5.1 billion based on the current share price.

The post Cimic (ASX:CIM) share price struggles despite $1.8b contract win appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cimic right now?

Before you consider Cimic, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cimic wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Cimic (ASX:CIM) share price recovers slightly on repayment pledge, closes 13% lower

Cimic (ASX:CIM) share price dumps 15% before being halted. Here’s why

Why Audio Pixels, CIMIC, Magellan, and St Barbara shares are tumbling

ASX 200 (ASX:XJO) midday update: Magellan shares crash 28%, CIMIC tumbles

Here’s why the Cimic (ASX:CIM) share price popped today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!