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

• Market Cap: €17.24B
• Dividend Yield: 3.92%
• Average Volume (3M): 1.98K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.78
• Revenue Growth: 6.35%
• EPS Growth: 9.38%
• Country: SE
• Employees: 11,381
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 4.78
• Shares Outstanding: 6,797,610
• 10 Day Avg. Volume: 1,649
• 30 Day Avg. Volume: 1,978
• 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: €214.04
• Price Target Upside: 7.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: kr214.00 ▲(7.00% Upside)

NCC AB Class A's overall stock score is driven by strong technical indicators and reasonable valuation. The stock's upward trend and attractive dividend yield are significant strengths. While the financial performance is stable, the recent decline in revenue growth and reliance on debt require attention.

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 financial performance with stable revenue growth and operational efficiency. The company maintains profitability margins despite competitive pressures, with strong cash flow management underscoring robust financial health. The balance sheet reflects a moderate leverage position typical for the sector, while focusing on enhancing equity ratios could improve financial stability.

Income Statement

The company shows stable gross profit margins around 8.5% in TTM, with net profit margins slightly improving to 2.5% compared to previous years. Revenue growth is modest at 6% from 2023 to 2024, indicating steady business growth. EBIT and EBITDA margins exhibit healthy signs of operational efficiency, with a slight dip in EBIT margin from 3.3% to 3.2% in TTM, reflecting competitive pressures in the industry.

Balance Sheet

The debt-to-equity ratio stands at 0.62 in TTM, indicating a moderate level of leverage, which is consistent with industry norms. Return on Equity (ROE) is approximately 19.2% in TTM, reflecting effective use of equity to generate profits. The equity ratio at 26% shows a reasonable level of equity financing, though lower than ideal, suggesting potential for improved financial stability.

Cash Flow

The company demonstrates strong cash flow management with a significant improvement in free cash flow from earlier negative figures to a positive 3.48 billion in TTM. The operating cash flow to net income ratio is robust at 2.67, indicating efficient cash conversion. Free cash flow growth is substantial, highlighting effective capital expenditure control and cash generation ability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.22B	61.61B	56.93B	54.20B	53.41B	53.92B
Gross Profit	5.28B	5.28B	4.69B	4.00B	4.52B	4.33B
EBITDA	2.70B	3.36B	3.19B	2.35B	3.14B	2.79B
Net Income	1.52B	1.57B	1.57B	1.07B	1.51B	1.26B
Balance Sheet
Total Assets	32.75B	32.03B	31.95B	29.57B	29.42B	28.55B
Cash, Cash Equivalents and Short-Term Investments	2.14B	3.72B	1.41B	1.00B	3.48B	2.62B
Total Debt	5.33B	5.08B	5.29B	4.30B	4.21B	4.57B
Total Liabilities	25.25B	23.36B	24.63B	22.38B	23.58B	24.58B
Stockholders Equity	7.50B	8.66B	7.32B	7.18B	5.84B	3.97B
Cash Flow
Free Cash Flow	3.67B	3.94B	99.00M	-707.00M	1.49B	944.00M
Operating Cash Flow	4.32B	4.64B	807.00M	265.00M	2.26B	1.57B
Investing Cash Flow	-630.00M	-647.00M	-446.00M	-401.00M	-363.00M	-463.00M
Financing Cash Flow	-3.44B	-1.79B	-187.00M	-1.90B	-1.49B	-1.32B

NCC AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 200.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 200 is above the 20-day moving average (MA) of 191.32, above the 50-day MA of 186.79, and above the 200-day MA of 175.27, indicating a bullish trend. The MACD of 2.99 indicates Negative momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 63.12 is Neutral, 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	75 Outperform	€17.24B	12.55		3.92%	6.35%	9.38%
Sector *	67 Neutral	€4.49B	27.17	21.72%	4.74%	3.30%	3.56%
0OFP	―	kr17.39B	12.58	20.77%	―	―	―
0MHT	―	kr22.21B	14.07	10.37%	―	―	―
0HBT	―	kr97.00B	15.77	10.55%	―	―	―
AFXXF	―	$1.72B	19.13	7.17%	4.29%	―	―
BRAV	69 Neutral	kr18.97B	17.03		4.00%	-3.75%	1.20%