Grupo San José: 1x EV/EBITDA, Double-Digit Growth, and Hidden Assets Worth as Much as Its Market Cap

Grupo San José (GSJ) is the kind of setup that deep value investors dream about, a boring business with strong cash generation, negative working capital, almost all of its market cap in net cash, a 1-2x EV/EBITDA multiple and quite a lot of hidden assets on the balance sheet, including real estate and land in Latin America and a 10% stake in one of the largest residential real estate projects in Europe that could be worth half the market cap.

But it’s seemingly also a setup that many quality investors would like, a well-run construction business that has grown EBITDA at LDD over the last decade and with a backlog that’s growing fast and covering over 2 years of revenue, with strong structural tailwinds benefiting from the housing and infrastructure shortage in Spain, Portugal and some regions of Latin America, all of that for a PE of 13 even if we give 0 value to the cash and the hidden assets which are worth well in excess of the current market cap.

I covered and owned the company a year and a half ago, they have reported good results and margins recovered in 2025 while revenues were flat, now going into 2026 the huge backlog seems to be starting to convert as the company’s started the year with DD growth. I am already up around +40% on my position but I still think there’s significant upside left.

It’s genuinely undercovered, it only has one analyst that does quite a lazy job and refuses to underwrite any type of growth despite a growing end market and a backlog that already reflects that; he’s been wrong consistently over the last four years, with actual EBITDA being +50% higher this year compared to his initial projections when covering this. I think this will continue to appreciate at meaningful rates with limited volatility as the company continues to show low double digit growth.

On top of that, the 10% stake they own in the residential project could offer rerating optionality, as it seems that after 3 decades of fighting to get this started, it’s finally starting and could unlock a huge amount of cash for the business, with added optionality on top from the assets in Latin America.

Now without further ado let’s dig into the setup and cover everything in detail.