NCC AB (NCC.B) AI Stock Analysis

• Market Cap: kr19.06B
• Dividend Yield: 3.6%
• Average Volume (3M): 213.35K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.69
• Revenue Growth: 6.35%
• EPS Growth: 9.38%
• Country: SE
• Employees: 11,800
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 4.78
• Shares Outstanding: 92,963,350
• 10 Day Avg. Volume: 352,132
• 30 Day Avg. Volume: 213,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr205.67
• Price Target Upside: -3.98% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Neutral
• Price Target: kr244.00 ▲(13.91% Upside)

NCC AB's overall stock score is driven by stable financial performance and reasonable valuation. The technical analysis indicates strong momentum, but overbought conditions suggest caution. The absence of earnings call data and corporate events limits additional insights.

NCC AB 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 generates revenue primarily through its construction and infrastructure projects, which include public and private sector contracts for building residential, commercial, and industrial properties, as well as civil engineering works like roads, bridges, and tunnels. The company's revenue model is based on project-based contracts, where it earns fees for services rendered, as well as profit margins on completed projects. Key revenue streams include construction contracts, property sales, and long-term maintenance agreements. Significant partnerships with governmental bodies and private developers enhance NCC's project pipeline, contributing to consistent earnings. Additionally, the company's focus on sustainable building practices and innovative construction techniques positions it favorably in a market increasingly prioritizing environmentally friendly solutions.

NCC AB Financial Statement Overview

Summary

NCC AB demonstrates stable profitability with consistent margins and a strong return on equity. However, challenges in revenue growth and cash flow volatility highlight areas for improvement. The company's financial health is supported by a balanced leverage position, but increasing debt levels warrant careful monitoring.

Income Statement

NCC AB's income statement shows a stable gross profit margin around 8.7% in TTM, with a slight decline in revenue growth rate. The net profit margin remains consistent at approximately 2.5%. EBIT and EBITDA margins are stable, indicating efficient cost management. However, the negative revenue growth rate in TTM suggests potential challenges in revenue generation.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.71 in TTM, indicating manageable leverage. Return on equity is strong at 19.4%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure. However, the increase in total debt over the periods could pose future risks.

Cash Flow

NCC AB's cash flow statement shows a positive free cash flow growth rate of 5.4% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is strong at 0.85, reflecting good cash profitability. However, the volatility in free cash flow growth over the years indicates potential cash flow management challenges.

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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 214.20
• 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.B, the sentiment is Positive. The current price of 214.2 is above the 20-day moving average (MA) of 205.37, above the 50-day MA of 195.52, and above the 200-day MA of 180.40, indicating a bullish trend. The MACD of 7.97 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 67.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:NCC.B.

NCC AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKA.B	72 Outperform	98.72B	15.99	10.49%	3.33%	8.54%	32.65%
NCC.B	70 Neutral	kr19.06B	13.75	20.77%	3.60%	6.35%	9.38%
BRAV	69 Neutral	19.03B	17.08	12.00%	4.03%	-3.75%	1.20%
PEAB.B	64 Neutral	23.10B	14.61	10.15%	1.92%	-3.46%	12.20%
SWEC.B	62 Neutral	56.93B	26.88	18.17%	2.09%	2.83%	18.23%
AFRY	62 Neutral	17.97B	19.24	7.50%	3.76%	-2.84%	-21.34%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

NCC AB Corporate Events

NCC Secures Major Asphalt Contracts in Northern Sweden

NCC has secured two significant asphalt-laying contracts in northern Sweden, valued at approximately SEK 175 million. The contracts involve road sections between Avakko and Lappeasuando in Gällivare and Grimsmark and Gumboda in Västerbotten, with projects extending from 2025 to 2028. NCC will deliver a total of 148,000 tons of asphalt, using environmentally certified plants and methods that reduce the climate footprint. These contracts highlight NCC’s expertise in infrastructure projects and its commitment to sustainable practices, reinforcing its position in the Nordic construction industry.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC to Build New Correctional Facility in Kristianstad

NCC AB has announced a partnership with Intea to construct a new correctional facility in Vä, near Kristianstad, for the Swedish Prison and Probation Service. The project, valued at approximately SEK 650 million, involves building a high-security facility with 200 spaces and various functional areas, leveraging NCC’s extensive experience in similar projects. The construction is set to begin in the third quarter of 2025 and complete in 2026, highlighting NCC’s commitment to delivering complex projects within tight timeframes.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC AB Updates Nomination Committee Amid AP Fund Consolidation

NCC AB announced changes to its Nomination Committee, with Mats Hellström from Nordea Fonder joining as a new member, replacing Anna Magnusson from Första AP-fonden due to the consolidation of Swedish AP Funds. This change reflects the broader restructuring of AP Funds, impacting NCC’s governance structure and potentially influencing its strategic direction.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC’s Fifteenth Annual Awareness Day Highlights Safety Achievements

NCC is organizing its fifteenth annual Awareness Day, focusing on promoting a safety-oriented corporate culture across its worksites in Sweden, Denmark, Norway, and Finland. This year’s theme emphasizes risk-free behaviors and safe work environments, contributing to a significant reduction in accident rates, with a 70% decrease in accidents and a 40% reduction in serious incidents since 2018.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC Partners with Specialfastigheter for Major Correctional Facility Project in Sweden

NCC has entered into a partnering agreement with Specialfastigheter to construct a major correctional facility in Trelleborg, Sweden, for the Swedish Prison and Probation Service. The project, which involves the construction of a facility with space for 800 inmates and 600 employees, will be one of the largest of its kind in Sweden. This initiative underscores NCC’s expertise in handling high-security projects, with the first phase focusing on planning and design. The collaboration aims to create a modern facility to enhance operational efficiency for the tenant.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC Secures SEK 370 Million Contract for Jönköping Nursing Home Project

NCC has been commissioned by Jönköping Municipality to construct a new nursing home and group home in Jönköping, with a project value of approximately SEK 370 million. The development will include 97 residential apartments and a group home with six apartments, featuring a cross-laminated timber frame to ensure a low climate footprint. The project, scheduled to start in the third quarter of 2025 and complete by autumn 2028, highlights NCC’s expertise in building modern, sustainable facilities.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC Secures Major Contract for Västra Götaland Power Line Expansion

NCC AB has secured a significant contract from Svenska kraftnät to plan and construct over 450 kilometers of power lines in Västra Götaland County, valued at approximately SEK 7.5 billion. This project is pivotal for the region’s electrification and industrial growth, and it will involve a strategic partnership that leverages NCC’s expertise in energy transmission and large-scale project management. The project will span about ten years, starting with immediate planning and subsequent construction phases.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC to Construct Climate-Resilient Rainwater Basin in Denmark

NCC has been commissioned to build an underground rainwater basin in Glostrup, Denmark, to protect the city from future flooding and enhance climate-adapted infrastructure. The SEK 160 million project, which includes road upgrades, is part of a broader climate adaptation strategy and is expected to be completed by the end of 2026.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC to Refurbish Swedish Police Premises in Karlstad

NCC AB has been commissioned to refurbish and expand the Swedish Police Authority’s office premises in Karlstad, a project valued at approximately SEK 500 million. This initiative aims to consolidate Karlstad’s police operations under one roof, enhancing the functionality and security of the premises. The construction, which is set to begin in autumn 2025 and complete by 2030, will involve the addition of 8,200 square meters of new office space and the modernization of 8,800 square meters of existing premises. This project underscores NCC’s capability in handling high-security construction projects and its role in supporting critical societal functions.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK212.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC to Expand Bålforsen Hydropower Plant in SEK 200 Million Project

NCC AB has been commissioned by Uniper to expand the Bålforsen hydropower plant in Lycksele, Sweden, with a project valued at approximately SEK 200 million. The expansion includes installing a new turbine and upgrading existing ones to enhance electricity generation and system services, aligning with Uniper’s strategy for flexible, green energy. Scheduled for completion in autumn 2027, the project will increase the plant’s output to 506 GWh annually, meeting the electricity needs of about 25,000 homes.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK187.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.