NCC AB Class A (NCC.A) AI Stock Analysis

• Market Cap: €19.04B
• Dividend Yield: 4.17%
• Average Volume (3M): 8.01K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.75
• Revenue Growth: 5.68%
• EPS Growth: 27.52%
• Country: SE
• Employees: 11,381
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 5.50
• Shares Outstanding: 6,797,610
• 10 Day Avg. Volume: 5,262
• 30 Day Avg. Volume: 8,013
• PEG Ratio: -40.70
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 4.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: kr242.00 ▲(13.08% Upside)

NCC AB Class A's strong valuation and solid financial performance are the primary drivers of its score. The stock's technical indicators suggest a positive trend, although caution is warranted due to potential overbought conditions. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Flow Management

Strong cash flow management enhances financial stability, allowing for reinvestment and debt reduction, supporting long-term growth.

Leverage Management

Improved leverage management reduces financial risk, providing more flexibility for strategic investments and growth opportunities.

Profitability

Stable profitability margins indicate effective cost management and operational efficiency, supporting sustainable earnings over time.

Negative Factors

Revenue Decline

A significant revenue decline could impact future profitability and growth, necessitating strategic adjustments to counteract this trend.

Debt Levels

High debt levels can limit financial flexibility and increase vulnerability to economic downturns, affecting long-term stability.

Revenue Growth Challenges

Challenges in maintaining revenue growth may hinder the company's ability to capitalize on market opportunities, impacting future expansion.

NCC AB Class A Business Overview & Revenue Model

Company Description

NCC AB (publ) operates as a construction and property development company in Sweden, Norway, Denmark, and Finland. It operates through five segments: NCC Infrastructure, NCC Building Sweden, NCC Building Nordic, NCC Industry, and NCC Property Development. The company builds residential buildings and offices, as well as constructs schools, hospitals, stores, and warehouses. It also designs and constructs infrastructure projects, such as tunnels, roads, and railways. In addition, the company produces stone materials and asphalt, as well as engages in the piling works and paving. Further, it develops and sells commercial properties in metropolitan regions in Sweden, Norway, Denmark, and Finland. The company was incorporated in 1935 and is headquartered in Solna, Sweden.

How the Company Makes Money

NCC AB makes money through a diversified revenue model that includes income from construction contracts, property development sales, and long-term infrastructure projects. The company generates revenue by undertaking large-scale construction projects across both public and private sectors, offering services such as project management, design, and engineering. Additionally, the sale of developed residential and commercial properties contributes significantly to its earnings. NCC AB also enters into partnerships and joint ventures to expand its project portfolio and access new markets, leveraging its expertise in sustainable and efficient building practices to attract clients and secure contracts.

NCC AB Class A Financial Statement Overview

Summary

NCC AB Class A demonstrates solid profitability and cash flow management, with stable margins and improving cash flow metrics. Despite a recent revenue decline, operational efficiency and leverage management provide a stable financial foundation.

Income Statement

NCC AB Class A shows a stable profitability with a consistent gross profit margin around 8-9% and net profit margin around 2.5-2.8%. However, the recent TTM data indicates a revenue decline of 18.1%, which is a concern. The EBIT and EBITDA margins have remained stable, reflecting operational efficiency. Despite the revenue drop, the company maintains decent profitability metrics.

Balance Sheet

The company's debt-to-equity ratio has improved slightly over the years, indicating better leverage management, currently at 0.71. Return on equity is strong at approximately 19.4% in the TTM, showing effective use of equity. The equity ratio is stable, suggesting a balanced capital structure. However, the overall debt level remains significant, which could pose risks if not managed properly.

Cash Flow

NCC AB Class A has shown a positive trend in free cash flow growth, with a notable increase of 14.6% in the TTM. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. The free cash flow to net income ratio is strong, suggesting efficient cash conversion. The company has improved its cash flow position significantly compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.11B	61.61B	56.93B	54.20B	53.41B	53.92B
Gross Profit	5.46B	5.28B	4.69B	4.00B	4.52B	4.33B
EBITDA	2.79B	3.36B	3.08B	2.60B	3.11B	2.79B
Net Income	1.59B	1.57B	1.57B	1.07B	1.51B	1.26B
Balance Sheet
Total Assets	32.16B	32.03B	31.95B	29.57B	29.42B	28.55B
Cash, Cash Equivalents and Short-Term Investments	890.00M	3.72B	1.41B	1.00B	3.48B	2.62B
Total Debt	4.19B	5.08B	5.29B	4.30B	4.21B	4.57B
Total Liabilities	23.82B	23.36B	24.63B	22.38B	23.58B	24.58B
Stockholders Equity	8.33B	8.66B	7.32B	7.18B	5.84B	3.97B
Cash Flow
Free Cash Flow	4.20B	3.94B	99.00M	-707.00M	1.49B	944.00M
Operating Cash Flow	4.91B	4.64B	807.00M	265.00M	2.26B	1.57B
Investing Cash Flow	-728.00M	-647.00M	-446.00M	-401.00M	-363.00M	-463.00M
Financing Cash Flow	-4.23B	-1.79B	-187.00M	-1.90B	-1.49B	-1.32B

NCC AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 214.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NCC.A, the sentiment is Positive. The current price of 214 is above the 20-day moving average (MA) of 210.62, above the 50-day MA of 210.83, and above the 200-day MA of 190.79, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 90.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:NCC.A.

NCC AB Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCC.A	76 Outperform	€19.04B	13.20	―	4.17%	5.68%	27.52%
NCC.B	75 Outperform	kr19.04B	13.21	20.30%	4.16%	5.68%	27.52%
PEAB.B	70 Outperform	kr22.03B	13.06	10.55%	3.48%	-4.93%	10.91%
AFRY	69 Neutral	$18.31B	19.86	6.97%	3.83%	-3.73%	-22.34%
SKA.B	67 Neutral	kr106.92B	17.32	10.45%	3.30%	6.02%	26.26%
BRAV	62 Neutral	kr16.14B	13.90	―	4.56%	-4.21%	10.63%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%