NCC AB (NCC.B) AI Stock Analysis

• Market Cap: kr16.91B
• Dividend Yield: 4.47%
• Average Volume (3M): 272.11K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.62
• Revenue Growth: 9.10%
• EPS Growth: 15.11%
• Country: SE
• Employees: 11,800
• Sector: Utilities
• Sector Strength: 77
• Industry: Engineering & Construction
• EPS (TTM): -1.38
• Shares Outstanding: 92,963,290
• 10 Day Avg. Volume: 343,411
• 30 Day Avg. Volume: 272,112
• PEG Ratio: -4.16
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.66
• 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: kr195.00
• Price Target Upside: 2.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ―

NCC AB receives a solid overall stock score due to its strong financial performance, characterized by robust revenue growth, zero debt, and improved cash flows. However, the bearish technical indicators weigh down the overall score, along with a valuation that, while attractive, suggests some market concerns reflected in the stock price trading below major moving averages.

NCC AB Business Overview & Revenue Model

Company Description

NCC AB is one of the leading construction and property development companies in the Nordic region, primarily operating in Sweden, Norway, Denmark, and Finland. The company is engaged in the development and construction of residential and commercial properties, infrastructure projects, and offers services in civil engineering. NCC AB is organized into several business segments, including Infrastructure, Building, and Industry, which focus on different aspects of construction and development.

How the Company Makes Money

NCC AB generates revenue through its diversified operations across the construction and development sectors. The company earns money primarily by undertaking construction contracts for infrastructure projects such as roads, bridges, and tunnels, and by developing residential and commercial properties which are then sold or leased. Additionally, NCC AB has a segment dedicated to industrial operations, which includes the production and sale of construction materials like asphalt and aggregates. Revenue streams are further bolstered by long-term service contracts and maintenance agreements, as well as strategic partnerships and joint ventures with other entities in the construction and real estate sectors.

NCC AB Financial Statement Overview

Summary

NCC AB demonstrates strong financial performance with solid revenue and profit growth, efficient cost management, and a robust balance sheet with zero debt in 2024. The company shows improvements in cash flow, although historical volatility suggests potential areas for further stability.

Income Statement

NCC AB's income statement shows strong profitability with a consistent increase in gross profit and EBIT margins over the years, indicating efficient cost management. The company's revenue growth from 2023 to 2024 is notable, with a growth rate of 8.2%. The net profit margin remains stable, suggesting robust earnings quality. However, the decline in EBITDA margin from 2023 to 2024 may indicate a slight increase in non-operational expenses.

Balance Sheet

The balance sheet reflects a healthy financial structure, with zero debt in 2024, significantly improving the debt-to-equity ratio. The equity ratio improved, showing strong equity financing. Return on equity is robust, reflecting effective utilization of equity capital. However, the decrease in cash and cash equivalents in 2024 could be a concern if it impacts liquidity.

Cash Flow

Cash flow analysis reveals substantial improvement in free cash flow due to strong operating cash flows in 2024. The operating cash flow to net income ratio is robust, indicating effective cash generation from operations. The free cash flow to net income ratio suggests efficient capital management. However, the high volatility in free cash flow growth rates in previous years highlights potential cash flow instability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
61.13B	61.61B	56.93B	54.20B	53.41B	53.92B
	Gross Profit
5.22B	5.28B	4.69B	4.00B	4.52B	4.33B
	EBIT
1.96B	2.03B	1.80B	1.36B	1.82B	1.36B
	EBITDA
3.00B	3.38B	3.19B	2.35B	3.14B	2.79B
	Net Income Common Stockholders
1.53B	1.57B	1.57B	1.07B	1.51B	1.26B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.64B	3.72B	1.41B	1.00B	3.48B	2.62B
	Total Assets
30.57B	32.03B	31.95B	29.57B	29.42B	28.55B
	Total Debt
4.97B	0.00	5.29B	4.30B	4.21B	4.57B
	Net Debt
2.95B	2.17B	4.59B	3.77B	1.65B	2.42B
	Total Liabilities
0.00	23.36B	24.63B	22.38B	23.58B	24.58B
	Stockholders Equity
7.97B	8.66B	7.32B	7.18B	5.84B	3.97B
Cash Flow		Free Cash Flow
3.48B	3.94B	99.00M	-707.00M	1.49B	944.00M
	Operating Cash Flow
4.09B	4.64B	807.00M	265.00M	2.26B	1.57B
	Investing Cash Flow
-569.00M	-647.00M	-446.00M	-401.00M	-363.00M	-463.00M
	Financing Cash Flow
-2.07B	-1.79B	-187.00M	-1.90B	-1.49B	-1.32B

NCC AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.20
• 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.B, the sentiment is Positive. The current price of 190.2 is above the 20-day moving average (MA) of 183.91, above the 50-day MA of 179.27, and above the 200-day MA of 166.79, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 62.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.57 is Negative, 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	80 Outperform	kr95.56B	15.40	10.49%	3.46%	9.67%	26.69%
SWEC.B	75 Outperform	kr59.05B	27.57	18.38%	1.97%	6.59%	34.58%
PEAB.B	74 Outperform	kr24.19B	11.42	13.64%	3.65%	0.98%	5.01%
INWI	71 Outperform	kr12.47B	22.47	9.96%	2.50%	3.91%	-5.92%
LIAB	68 Neutral	kr16.50B	48.37	4.65%	2.50%	2.71%	-56.45%
NCC.B	67 Neutral	kr16.91B	12.16	19.89%	4.47%	9.10%	15.11%
Sector *	64 Neutral	$8.54B	10.30	4.24%	4.37%	4.14%	-13.04%