NCC AB (NCC.B) AI Stock Analysis

• Market Cap: kr20.46B
• Dividend Yield: 4.17%
• Average Volume (3M): 238.32K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.74
• Revenue Growth: 5.68%
• EPS Growth: 27.52%
• Country: SE
• Employees: 11,800
• Sector: General
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 5.50
• Shares Outstanding: 92,963,350
• 10 Day Avg. Volume: 160,756
• 30 Day Avg. Volume: 238,325
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: kr242.00 ▲(8.81% Upside)

NCC AB's overall stock score reflects strong technical indicators and a solid valuation, supported by stable financial performance. The company's robust balance sheet and effective equity utilization are significant strengths, while challenges in revenue growth and cash conversion efficiency present areas for improvement. The absence of recent earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Sustainable Building Practices

NCC AB's emphasis on sustainable building practices positions it well to capitalize on the increasing demand for eco-friendly construction, enhancing its competitive edge and potentially driving long-term revenue growth.

Cash Flow Improvement

Improved cash flow generation indicates better financial health and operational efficiency, providing NCC AB with greater flexibility for investments and debt management, supporting long-term growth.

Effective Equity Utilization

A strong return on equity demonstrates NCC AB's ability to efficiently utilize shareholder funds to generate profits, indicating robust management performance and potential for sustained profitability.

Negative Factors

Revenue Decline

A significant revenue decline poses challenges for NCC AB in maintaining growth momentum, potentially impacting its market position and long-term financial performance if not addressed.

Increasing Leverage

Rising leverage could strain NCC AB's financial flexibility and increase risk, necessitating careful debt management to avoid potential long-term financial instability.

Low Cash Conversion Efficiency

Limited cash conversion efficiency suggests challenges in turning profits into cash, which could impact NCC AB's ability to fund operations and growth initiatives over the long term.

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 and effective equity utilization, 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	60.11B	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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 222.40
• 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 222.4 is above the 20-day moving average (MA) of 218.60, above the 50-day MA of 214.86, and above the 200-day MA of 193.56, indicating a bullish trend. The MACD of 3.68 indicates Negative momentum. The RSI at 69.28 is Neutral, neither overbought nor oversold. The STOCH value of 86.24 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
NCC.B	75 Outperform	kr20.46B	14.18	20.30%	4.17%	5.68%	27.52%
PEAB.B	70 Outperform	kr26.47B	15.70	10.55%	3.26%	-4.93%	10.91%
AFRY	69 Neutral	kr17.52B	19.00	6.97%	4.09%	-3.73%	-22.34%
SKA.B	67 Neutral	kr110.29B	17.84	10.45%	3.18%	6.02%	26.26%
SWEC.B	66 Neutral	kr53.79B	24.87	18.65%	2.20%	2.79%	14.00%
BRAV	62 Neutral	kr18.59B	16.01	―	4.22%	-4.21%	10.63%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

NCC AB Corporate Events

NCC Wins SEK 175 Million Contract to Build Twin School in Surahammar

NCC has been commissioned by Surahammar Municipality in Sweden to build a new school using construction documents from a similar NCC-built school in Norrköping, enabling a turnkey project valued at approximately SEK 175 million. The twin-school concept, comprising two parallel buildings totaling 6,000 square meters and accommodating about 400 students from preschool to Year 6, aims to exploit modularity and repetition for cost-efficient, functional and sustainable design, while also including specialized classrooms, kitchen, canteen and an outdoor environment that encourages physical activity; production will start in the first quarter of 2026, with completion planned for the third quarter of 2027, strengthening NCC’s position in standardized yet customized educational facilities and showcasing its ability to reuse proven designs to reduce risk and improve quality for municipal clients.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK242.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC Wins SEK 160 Million Asphalt Contracts for Southwestern Sweden Road Maintenance

NCC has secured three-year contracts worth approximately SEK 160 million from the Swedish Transport Administration to carry out road surface maintenance in southwestern Sweden, primarily in Halland county’s Halmstad district and parts of Västra Götaland, covering improvement works on about 200 kilometers of road. The asphalt will be produced at NCC’s Halmstad and Borås plants, with the projects emphasizing climate transparency through environmental product declarations (EPDs) for the asphalt used, and the agreements—booked in the NCC Industry business area in the first quarter of 2026—include an option for additional orders of up to 20 percent of the contract value, reinforcing NCC’s position in Nordic infrastructure maintenance and highlighting its focus on documented environmental performance.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK242.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC Wins SEK 2.37 Billion Danish Office and Laboratory Contract

NCC has secured a major contract in Denmark to construct a combined office and laboratory facility covering approximately 42,000 square meters, in a project valued at about SEK 2.37 billion. The unnamed-customer project, due to start in early 2026 and complete in early 2029, will be booked in the fourth quarter of 2025 under the NCC Building Nordics business area, bolstering the company’s order book in its core Nordic market and underscoring its role in large-scale, technically complex non-residential construction, with potential long-term benefits for revenue visibility and capacity utilization in the region.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK242.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC Appoints New CFO to Drive Future Growth

NCC has announced the appointment of Katarina Wilson as the new Chief Financial Officer, succeeding Susanne Lithander who will retire. Wilson, who brings extensive experience in financial control and business development from her previous roles at AcadeMedia, Husqvarna, Johnson & Johnson, and Electrolux, will join NCC’s Senior Management Team by June 1, 2026. This leadership change is expected to support NCC’s continued growth and strengthen its position as an industry leader.

The most recent analyst rating on ($SE:NCC.B) stock is a Buy with a SEK242.00 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 Heleneholmsbadet Swim Center in Malmö

NCC AB has announced a partnership with Malmö Stadsfastigheter to construct the Heleneholmsbadet swim center in Malmö, with an order value of approximately SEK 475 million. The project, which is expected to accommodate 630,000 visitors annually, will feature a 50-meter pool, three smaller pools, and sustainable features like steel pools and rooftop solar panels. Construction is set to begin in early 2026 and finish by the end of 2028, further solidifying NCC’s position as a specialist in swim center construction in Sweden.

The most recent analyst rating on ($SE:NCC.B) stock is a Hold with a SEK244.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC to Upgrade Viborg’s Wastewater Treatment Plant in Denmark

NCC, in partnership with Envidan, has been commissioned to modernize and expand the central wastewater treatment plant in Viborg, Denmark. This project, valued at approximately SEK 630 million, will introduce a fourth stage of purification to remove pharmaceutical residues, marking a significant upgrade in Denmark’s wastewater treatment capabilities. The project is set to commence in October 2025 and conclude by spring 2029, with NCC registering an order value of SEK 315 million in the fourth quarter of 2025.

The most recent analyst rating on ($SE:NCC.B) stock is a Hold with a SEK244.00 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 1.5 Billion Renovation Contract in Stockholm

NCC has secured a SEK 1.5 billion contract to renovate and enhance accessibility in a central Stockholm block, covering 16,000 square meters. The project, set to begin in autumn 2025 and conclude in 2029, will be recorded under the NCC Building Sweden business area, potentially strengthening NCC’s market position in the Nordic construction industry.

The most recent analyst rating on ($SE:NCC.B) stock is a Hold with a SEK244.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC AB Reports Strong Q3 Earnings Growth Amid Strategic Project Wins

NCC AB reported strong earnings growth in the third quarter of 2025, driven by record performance in its Industry business area and increased early involvement contracts. Despite a decrease in orders received, the company secured significant projects, such as expanding the electricity grid in Västra Götaland and constructing a major prison in Sweden. The termination of the Korsvägen project contract by the Swedish Transport Administration is contested by NCC, with plans to claim damages. The market outlook remains positive in prioritized segments, although the commercial property market is cautious.

The most recent analyst rating on ($SE:NCC.B) stock is a Hold with a SEK244.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.

NCC AB to Construct New Swim Center in Karlskrona

NCC AB has announced a new project to construct a swim center in Rödeby, Karlskrona, in collaboration with the Karlskrona Municipality. The project, valued at approximately SEK 200 million, involves building a new facility adjacent to an existing outdoor pool, featuring a 25-meter pool and a teaching pool with adjustable floors, among other amenities. This initiative is expected to enhance energy and resource efficiency and is part of a turnkey contract in partnering form. The construction is set to commence immediately and is anticipated to take around two years, marking a significant development in NCC’s portfolio of swim center projects.

The most recent analyst rating on ($SE:NCC.B) stock is a Hold with a SEK244.00 price target. To see the full list of analyst forecasts on NCC AB stock, see the SE:NCC.B Stock Forecast page.